PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1013
- TART II—PARTNERSHIP LEVEL
ADJUSTMENTS "Subpart A. Adjustments by Secretary. "Subpart B. Claims for adjustments by partnership. "Subpart A—Adjustments by Secretary "Sec. 6245. Secretarial authority. "Sec. 6246. Restrictions on partnership adjustments. "Sec. 6247. Judicial review of partnership adjustment. "Sec. 6248. Period of limitations for making adjustments. "SEC. 6245. SECRETARIAL AUTHORITY. "(a) GENERAL RULE. —The Secretary is authorized and directed to make adjustments at the partnership level in any partnership item to the extent necessary to have such item be treated in the manner required. " (b) NOTICE OF PARTNERSHIP ADJUSTMENT.— "(1) IN GENERAL.— I f the Secretary determines that a partnership adjustment is required, the Secretary is authorized to send notice of such adjustment to the partnership by certified mail or registered mail. Such notice shall be sufficient if mailed to the partnership at its last known address even if the partnership has terminated its existence. "(2) FURTHER NOTICES RESTRICTED. — If the Secretary mails a notice of a partnership adjustment to any partnership for any partnership taxable year and the partnership files a petition under section 6247 with respect to such notice, in the absence of a showing of fraud, malfeasance, or misrepresentation of a material fact, the Secretary shall not mail another such notice to such partnership with respect to such taxable year. " (3) AUTHORITY TO RESCIND NOTICE WITH PARTNERSHIP CON- SENT.— The Secretary may, with the consent of the partnership, rescind any notice of a partnership adjustment mailed to such partnership. Any notice so rescinded shall not be treated as a notice of a partnership adjustment, for purposes of this section, section 6246, and section 6247, and the taxpayer shall have no right to bring a proceeding under section 6247 with respect to such notice. Nothing in this subsection shall affect any suspension of the running of any period of limitations during any period during which the rescinded notice was outstanding. "SEC. 6246. RESTRICTIONS ON PARTNERSHIP ADJUSTMENTS. "(a) GENERAL RULE. —Except as otherwise provided in this chapter, no adjustment to any partnership item may be made (and no levy or proceeding in any court for the collection of any amount resulting from such adjustment may be made, begun or prosecuted) before— "(1) the close of the 90th day after the day on which a notice of a partnership adjustment was mailed to the partnership, and "(2) if a petition is filed under section 6247 with respect to such notice, the decision of the court has become final. " (b) PREMATURE ACTION MAY BE ENJOINED. —Notwithstanding section 7421(a), any action which violates subsection (a) may be
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