,,ii  #aac? ,,congress  #b;d ,session   
,s4 #cjah  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #af1 #bjad    
,mr4 ,lev9 introduc$ ! foll[+ bill2 :i* 
0 read twice & ref]r$ to ! ,committee on
 ,f9ance  ,a ,,bill  ,to am5d ! ,int]nal
 ,rev5ue ,code ( #aihf to re=m ! rules  
relat+ to p>tn]%ip audits & adju/m5ts4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,p>tn]%ip ,audit+ ,fairness ,act4  #b4
 ,p>tn]%ip audits & adju/m5ts  7a7      
,repeal ( ,,tefra p>tn]%ip audit rules  
7#a7 ,9 g5]al ,*apt] #fc ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
sub*apt] ,c4  7#b7 ,cl]ical am5dm5t ,!  
table ( sub*apt]s = *apt] #fc ( su*     
,code is am5d$ by /rik+ ! item relat+ to
 sub*apt] ,c4  7b7 ,repeal ( elect+ l>ge
 p>tn]%ip rules  7#a7 ,9 g5]al ,sub*apt]
 ,k ( *apt] #a ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by /rik+ "p ,,iv4
  7#b7 ,assessm5t rules relat+ to elect+
 l>ge p>tn]%ips ,*apt] #fc ( su* ,code  
is am5d$ by /rik+ sub*apt] ,d4  7#c7    
,cl]ical am5dm5ts  7,a7 ,! table ( p>ts 

= sub*apt] ,k ( *apt] #a ( su* ,code is 
am5d$ by /rik+ ! item relat+ to "p ,,iv4
  7,b7 ,! table ( sub*apt]s = *apt] #fc 
( su* ,code is am5d$ by /rik+ ! item    
relat+ to sub*apt] ,d4  7#d7 ,effective 
date ,! am5dm5ts made by ?is subsection 
%all apply to returns fil$ aft] ,decemb]
 #ca1 #bjad4  7c7 ,p>tn]%ip audit re=m  
7#a7 ,9 g5]al ,*apt] #fc ( ! ,int]nal   
,rev5ue ,code ( #aihf1 z am5d$ by ?is   
section1 is am5d$ by ins]t+ aft]        
sub*apt] ,b ! foll[+ new sub*apt]3  ,c  
,treatm5t ( p>tn]%ips  ,"p ,i--,9 g5]al 
,"p ,,ii--,p>tn]%ip adju/m5ts ,"p       
,,iii--,proc$ure ,"p ,,iv--,def9itions &
 special rules  ,i ,9 g5]al  ,sec4      
#fbba4 ,det]m9ation at p>tn]%ip level4  
,sec4 #fbbb4 ,p>tn]'s return mu/ be     
consi/5t ) p>tn]%ip return4 ,sec4 #fbbc4
 ,designation ( p>tn]%ip repres5tative4 
#fbba4 ,det]m9ation at p>tn]%ip level   
7a7 ,9 g5]al ,items ( income1 ga91 loss1
 d$uction1 or cr$it ( a p>tn]%ip = a    
p>tn]%ip taxable ye> 7& any p>tn]'s     
di/ributive %>e !re(7 %all be audit$1   

any tax attributable !reto %all be      
assess$ & collect$1 & ! applicability ( 
any p5alty1 addition to tax1 or         
additional am\nt :i* relates to an      
adju/m5t to any su* item or %>e %all be 
det]m9$1 at ! p>tn]%ip level pursuant to
 ?is sub*apt]4  7b7 ,election out =     
c]ta9 p>tn]%ips ) #ajj or few] p>tn]s   
,?is sub*apt] %all n apply ) respect to 
any p>tn]%ip = any taxable ye> if--     
7#a7 ! p>tn]%ip elects ! application (  
?is subsection = su* taxable ye>1  7#b7 
! p>tn]%ip has #ajj or few] p>tn]s on ! 
la/ day ( su* taxable ye>1  7#c7 ea* ( !
 p>tn]s ( su* p>tn]%ip is an individual1
 a ,c corporation 7o!r ?an a real e/ate 
inve/m5t tru/ or a regulat$ inve/m5t    
company71 any =eign entity t w\ld be    
treat$ z a ,c corporation 7 x dome/ic1  
or an e/ate ( a deceas$ p>tn]1  7#d7 !  
election--  7,a7 is made ) a timely fil$
 return = su* taxable ye>1 &  7,b7      
includes 79 ! mann] prescrib$ by !      
,secret>y7 a disclosure ( ! "n & taxpay]
 id5tification numb] ( ea* p>tn] ( su*  

p>tn]%ip1 &  7#e7 ! p>tn]%ip notifies   
ea* su* p>tn] ( su* election 9 ! mann]  
prescrib$ by ! ,secret>y4  ,= purposes (
 p>agraph 7#d77;,b71 ! ,secret>y may    
provide = alt]native id5tification ( any
 =eign p>tn]s4  #fbbb4 ,p>tn]'s return  
mu/ be consi/5t ) p>tn]%ip return  7a7  
,9 g5]al ,a p>tn] ( any p>tn]%ip %all1  
on ! p>tn]'s return1 treat ea* item (   
income1 ga91 loss1 d$uction1 or cr$it   
attributable to su* p>tn]%ip 9 a mann]  
:i* is consi/5t ) ! treatm5t ( su*      
income1 ga91 loss1 d$uction1 or cr$it on
 ! p>tn]%ip return4  7b7 ,und]paym5t due
 to inconsi/5t treatm5t assess$ z ma?   
error ,any und]paym5t ( tax by a p>tn]  
by reason ( fail+ to comply ) !         
requirem5ts ( subsection 7a7 %all be    
assess$ & collect$ 9 ! same mann] z if  
su* und]paym5t 7 on acc\nt ( a          
ma!matical or cl]ical error appe>+ on ! 
p>tn]'s return4 ,p>agraph 7#b7 ( section
 #fbac7;b7 %all n apply to any assessm5t
 ( an und]paym5t ref]r$ to 9 ! prec$+   
s5t5ce4  7c7 ,addition to tax = failure 

,to comply ) section ,= addition to tax 
9 ! case ( p>tn]'s disreg>d ( !         
requirem5ts ( ?is section1 see "p ,,ii (
 sub*apt] ,a ( *apt] #fh4  #fbbc4       
,p>tn]s b\nd by actions ( p>tn]%ip  7a7 
,designation ( p>tn] ,ea* p>tn]%ip %all 
designate 79 ! mann] prescrib$ by !     
,secret>y7 a p>tn] 7or o!r p]son7 z !   
p>tn]%ip repres5tative :o %all h ! sole 
au?ority to act on behalf ( ! p>tn]%ip  
"u ?is sub*apt]4 ,9 any case 9 :i* su* a
 designation is n 9 effect1 ! ,secret>y 
may select any p>tn] z ! p>tn]%ip       
repres5tative4  7b7 ,b9d+ effect ,a     
p>tn]%ip & all p>tn]s ( su* p>tn]%ip    
%all be b\nd--  7#a7 by actions tak5 "u 
?is sub*apt] by ! p>tn]%ip1 &  7#b7 by  
any decision 9 a proce$+ br\ght "u ?is  
sub*apt]4  ,,ii ,p>tn]%ip adju/m5ts     
,sec4 #fbbe4 ,p>tn]%ip adju/m5t by      
,secret>y4 ,sec4 #fbbf4 ,adm9i/rative   
adju/m5t reque/ by p>tn]%ip4  #fbbe4    
,p>tn]%ip adju/m5t by ,secret>y  7a7 ,9 
g5]al ,9 ! case ( any adju/m5t by !     
,secret>y 9 ! am\nt ( any item ( income1

 ga91 loss1 d$uction1 or cr$it ( a      
p>tn]%ip1 or any p>tn]'s di/ributive %>e
 !re(--  7#a7 ! p>tn]%ip %all pay any   
imput$ und]paym5t ) respect to su*      
adju/m5t 9 ! adju/m5t ye> z provid$ 9   
section #fbcb1 &  7#b7 any imput$       
ov]paym5t %all be tak5 into acc\nt by ! 
p>tn]%ip 9 ! adju/m5t ye> z a r$uction 9
 non-sep>ately /at$ income or an        
increase 9 non-sep>ately /at$ loss      
7:i*ev] is appropriate7 "u section      
#gjb7;a77#h74  7b7 ,det]m9ation ( imput$
 und]paym5ts & ov]paym5ts ,= purposes ( 
?is sub*apt]--  7#a7 ,9 g5]al ,except z 
provid$ 9 subsection 7c71 any imput$    
und]paym5t or imput$ ov]paym5t ) respect
 to any p>tn]%ip adju/m5t = any review$ 
ye> %all be det]m9$--  7,a7 by nett+ all
 adju/m5ts ( items ( income1 ga91 loss1 
or d$uction & multiply+ su* net am\nt by
 ! highe/ rate ( tax 9 effect = !       
review$ ye> "u section #a or #aa1  7,b7 
by treat+ any net increase or decrease 9
 loss "u subp>agraph 7,a7 z a decrease  
or increase1 respectively1 9 income1 &  

7,c7 by tak+ into acc\nt any adju/m5ts  
to items ( cr$it z an increase or       
decrease1 z ! case may be1 9 ! am\nt    
det]m9$ "u subp>agraph 7,a74  7#b7      
,adju/m5ts to di/ributive %>es ( p>tn]s 
n nett$ ,9 ! case ( any adju/m5t :i*    
reallocates ! di/ributive %>e ( any item
 f "o p>tn] to ano!r1 su* adju/m5t %all 
be tak5 into acc\nt "u p>agraph 7#a7 by 
disreg>d+--  7,a7 any decrease 9 any    
item ( income or ga91 &  7,b7 any       
increase 9 any item ( d$uction1 loss1 or
 cr$it4  7c7 ,modification ( imput$     
und]paym5ts  7#a7 ,me?od 9 g5]al ,!     
,secret>y %all e/abli% proc$ures "u :i* 
! imput$ und]paym5t am\nt may be modifi$
 consi/5t ) ! requirem5ts ( ?is         
subsection4  7#b7 ,am5d$ returns (      
p>tn]s ,su* proc$ures %all provide t    
if--  7,a7 "o or m p>tn]s file returns =
 ! taxable ye> ( ! p>tn]s :i* includes !
 end ( ! review$ ye> ( ! p>tn]%ip1  7,b7
 su* returns take into acc\nt all       
adju/m5ts "u subsection 7a7 prop]ly     
allocable to su* p>tn]s 7& = any o!r    

taxable ye> ) respect to :i* any tax    
attribute is affect$ by reason ( su*    
adju/m5ts71 &  7,c7 paym5t ( any tax due
 is includ$ ) su* return1  !n ! imput$  
und]paym5t am\nt %all be det]m9$ )\t    
reg>d to ! portion ( ! adju/m5ts s tak5 
into acc\nt4  7#c7 ,reallocation (      
di/ributive %>e ,9 ! case ( any adju/m5t
 :i* reallocates ! di/ributive %>e ( any
 item f "o p>tn] to ano!r1 p>agraph 7#b7
 %all apply only if returns are fil$ by 
all p>tn]s affect$ by su* adju/m5t4     
7#d7 ,ye> & day = submission to         
,secret>y ,any?+ requir$ to be submitt$ 
pursuant to p>agraph 7#a7 %all be       
submitt$ to ! ,secret>y n lat] ?an !    
close ! #ahj-;day p]iod beg9n+ on ! date
 on :i* ! notice ( a propos$ p>tn]%ip   
adju/m5t is mail$ "u section #fbca      
unless su* p]iod is ext5d$ ) ! cons5t ( 
! ,secret>y4  7#e7 ,decision ( ,secret>y
 ,any modification ( ! imput$ und]paym5t
 am\nt "u ?is subsection %all be made   
only ^u approval ( su* modification by !
 ,secret>y4  7d7 ,def9itions & special  

rule ,= purposes ( ?is sub*apt]--  7#a7 
,review$ ye> ,! t]m review$ ye> means ! 
p>tn]%ip taxable ye> to :i* ! item be+  
adju/$ relates4  7#b7 ,adju/m5t ye> ,!  
t]m adju/m5t ye> means ! p>tn]%ip       
taxable ye> 9 :i*--  7,a7 9 ! case ( an 
adju/m5t pursuant to ! decision ( a c\rt
 9 a proce$+ br\ght "u section #fbcd1   
su* decision becomes f9al1  7,b7 9 !    
case ( an adm9i/rative adju/m5t reque/  
"u section #fbbf1 su* adm9i/rative      
adju/m5t reque/ is made1 or  7,c7 9 any 
o!r case1 notice ( ! f9al p>tn]%ip      
adju/m5t is mail$ "u section #fbca4     
#fbbf4 ,adm9i/rative adju/m5t reque/ by 
p>tn]%ip  7a7 ,9 g5]al ,a p>tn]%ip may  
file a reque/ = an adm9i/rative adju/m5t
 9 ! am\nt ( any item ( income1 ga91    
loss1 d$uction1 or cr$it ( ! p>tn]%ip = 
any p>tn]%ip taxable ye>1 b only to !   
ext5t su* adju/m5t results 9 an imput$  
und]paym5t4  7b7 ,adju/m5t ,any adju/m5t
 "u subsection 7a7 %all be det]m9$ &    
tak5 into acc\nt by ! p>tn]%ip "u rules 
simil> to ! rules ( section #fbbe 7o!r  

?an subsection 7c7 !re(7 = ! p>tn]%ip   
taxable ye> 9 :i* ! adm9i/rative        
adju/m5t reque/ is made4  7c7 ,p]iod (  
limitations ,a p>tn]%ip may n file su* a
 reque/--  7#a7 m ?an #c ye>s aft] !    
lat] (--  7,a7 ! date on :i* ! p>tn]%ip 
return = su* ye> is fil$1 or  7,b7 ! la/
 day = fil+ ! p>tn]%ip return = su* ye> 
7det]m9$ )\t reg>d to ext5sions71 &     
7#b7 aft] any notice ( an adm9i/rative  
proce$+ ) respect to ! taxable ye> is   
mail$ "u section #fbca4  ,,iii ,proc$ure
  ,sec4 #fbca4 ,notice ( proce$+s &     
adju/m5t4 ,sec4 #fbcb4 ,assessm5t1      
collection1 & paym5t4 ,sec4 #fbcc4      
,p5alties & int]e/4 ,sec4 #fbcd4        
,judicial review ( p>tn]%ip adju/m5t4   
,sec4 #fbce4 ,p]iod ( limitations on    
mak+ adju/m5ts4  #fbca4 ,notice (       
proce$+s & adju/m5t  7a7 ,9 g5]al ,!    
,secret>y %all mail to ! p>tn]%ip & !   
p>tn]%ip repres5tative--  7#a7 notice ( 
any adm9i/rative proce$+ initiat$ at !  
p>tn]%ip level ) respect to an adju/m5t 
( any item ( income1 ga91 loss1         

d$uction1 or cr$it ( a p>tn]%ip = a     
p>tn]%ip taxable ye>1 or any p>tn]'s    
di/ributive %>e !re(1  7#b7 notice ( any
 propos$ p>tn]%ip adju/m5t result+ f su*
 proce$+1 &  7#c7 notice ( any f9al     
p>tn]%ip adju/m5t result+ f su* proce$+4
  ,any notice ( a f9al p>tn]%ip adju/m5t
 %all n be mail$ e>li] ?an #ahj days    
aft] ! date on :i* ! notice ( ! propos$ 
p>tn]%ip adju/m5t is mail$4 ,su* notices
 %all be suffici5t if mail$ to ! la/    
kn[n address ( ! p>tn]%ip repres5tative 
or ! p>tn]%ip 7ev5 if ! p>tn]%ip has    
t]m9at$ its exi/5ce74 ,! fir/ s5t5ce    
%all apply to any proce$+ ) respect to  
an adm9i/rative adju/m5t reque/ fil$ by 
a p>tn]%ip "u section #fbbf4  7b7 ,fur!r
 notices re/rict$ ,if ! ,secret>y mails 
a notice ( a f9al p>tn]%ip adju/m5t to  
any p>tn]%ip = any p>tn]%ip taxable ye> 
& ! p>tn]%ip files a petition "u section
 #fbcd ) respect to su* notice1 9 !     
abs5ce ( a %[+ ( fraud1 malfeasance1 or 
misrepres5tation ( a mat]ial fact1 !    
,secret>y %all n mail ano!r su* notice  

to su* p>tn]%ip ) respect to su* taxable
 ye>4  7c7 ,au?ority ,to resc9d notice )
 p>tn]%ip cons5t ,! ,secret>y may1 ) !  
cons5t ( ! p>tn]%ip1 resc9d any notice (
 a p>tn]%ip adju/m5t mail$ to su*       
p>tn]%ip4 ,any notice s resc9d$ %all n  
be treat$ z a notice ( a p>tn]%ip       
adju/m5t = purposes ( ?is sub*apt]1 & ! 
taxpay] %all h no "r to br+ a proce$+ "u
 section #fbcd ) respect to su* notice4 
#fbcb4 ,assessm5t1 collection1 & paym5t 
7a7 ,9 g5]al ,any imput$ und]paym5t--   
7#a7 %all be assess$ & collect$ 9 ! same
 mann] z if x 7 a tax impos$ = !        
adju/m5t ye> by subtitle ,a1 &  7#b7    
%all be paid on or be=e ! return due    
date = ! adju/m5t ye>4  7b7 ,limitation 
on assessm5t ,except z o!rwise provid$ 9
 ?is *apt]1 no assessm5t ( a defici5cy  
may be made 7& no levy or proce$+ 9 any 
c\rt = ! collection ( any am\nt result+ 
f su* adju/m5t may be made1 begun or    
prosecut$7 be=e--  7#a7 ! close ( ! #ij?
 day aft] ! day on :i* a notice ( a f9al
 p>tn]%ip adju/m5t 0 mail$1 &  7#b7 if a

 petition is fil$ "u section #fbcd )    
respect to su* notice1 ! decision ( !   
c\rt has become f9al4  7c7 ,premature   
action may be enjo9$ ,not)/&+ section   
#gdba7;a71 any action :i* violates      
subsection 7b7 may be enjo9$ 9 ! prop]  
c\rt1 includ+ ! ,tax ,c\rt4 ,! ,tax     
,c\rt %all h no jurisdiction to enjo9   
any action "u ?is subsection unless a   
timely petition has be5 fil$ "u section 
#fbcd & !n only 9 respect ( ! adju/m5ts 
t are ! subject ( su* petition4  7d7    
,exceptions to re/rictions on adju/m5ts 
7#a7 ,adju/m5ts aris+ out ( ma? or      
cl]ical errors  7,a7 ,9 g5]al ,if !     
p>tn]%ip is notifi$ t1 on acc\nt ( a    
ma!matical or cl]ical error appe>+ on ! 
p>tn]%ip return1 an adju/m5t to a       
p>tn]%ip item is requir$1 rules simil>  
to ! rules ( p>agraphs 7#a7 & 7#b7 (    
section #fbac7;b7 %all apply to su*     
adju/m5t4  7,b7 ,special rule ,if a     
p>tn]%ip is a p>tn] 9 ano!r p>tn]%ip1   
any adju/m5t on acc\nt ( su* p>tn]%ip's 
failure to comply ) ! requirem5ts (     

section #fbbb7;a7 ) respect to its      
int]e/ 9 su* o!r p>tn]%ip %all be treat$
 z an adju/m5t ref]r$ to 9 subp>agraph  
7,a71 except t p>agraph 7#b7 ( section  
#fbac7;b7 %all n apply to su* adju/m5t4 
7#b7 ,p>tn]%ip may waive re/rictions ,! 
p>tn]%ip may at any "t 7:e!r or n any   
notice ( p>tn]%ip adju/m5t has be5      
issu$71 by a sign$ notice 9 writ+ fil$ )
 ! ,secret>y1 waive ! re/rictions       
provid$ 9 subsection 7b7 on ! mak+ ( any
 p>tn]%ip adju/m5t4  7e7 ,limit :]e no  
proce$+ begun ,if no proce$+ "u section 
#fbcd is begun ) respect to any notice (
 a f9al p>tn]%ip adju/m5t dur+ !        
#ij-;day p]iod describ$ 9 subsection 7b7
 !re(1 ! am\nt = :i* ! p>tn]%ip is      
liable "u section #fbbe %all n exce$ !  
am\nt det]m9$ 9 accordance ) su* notice4
  #fbcc4 ,p5alties & int]e/  7a7        
,p5alties & int]e/ det]m9$ f review$ ye>
  7#a7 ,9 g5]al ,9 ! case ( an imput$   
und]paym5t ) respect to a p>tn]%ip      
adju/m5t = a review$ ye>1 ! p>tn]%ip--  
7,a7 %all pay to ! ,secret>y int]e/     

comput$ "u p>agraph 7#b71 &  7,b7 %all  
be liable = any p5alty1 addition to tax1
 or additional am\nt z provid$ 9        
p>agraph 7#c74  7#b7 ,det]m9ation (     
am\nt ( int]e/ ,! int]e/ comput$ "u ?is 
p>agraph ) respect to any p>tn]%ip      
adju/m5t is ! int]e/ :i* w\ld be det]m9$
 "u *apt] #fg--  7,a7 on ! imput$       
und]paym5t det]m9$ ) respect to su*     
adju/m5t1 &  7,b7 = ! p]iod beg9n+ on ! 
day aft] ! return due date = ! review$  
ye> & end+ on ! return due date = !     
adju/m5t ye> 7or1 if e>li]1 ! date      
paym5t ( ! imput$ und]paym5t is made74  
,prop] adju/m5ts 9 ! am\nt det]m9$ "u ! 
prec$+ s5t5ce %all be made = adju/m5ts  
requir$ = p>tn]%ip taxable ye>s aft] !  
review$ ye> & be=e ! adju/m5t ye> by    
reason ( su* p>tn]%ip adju/m5t4  7#c7   
,p5alties ,a p>tn]%ip %all be liable =  
any p5alty1 addition to tax1 or         
additional am\nt = :i* x w\ld h be5     
liable if su* p>tn]%ip _h be5 an        
individual subject to tax "u *apt] #a = 
! review$ ye> & ! imput$ und]paym5t 7 an

 actual und]paym5t 7or und]/atem5t7 =   
su* ye>4  7b7 ,int]e/ & p5alties )      
respect to adju/m5t ye> return  7#a7 ,9 
g5]al ,9 ! case ( any failure to pay an 
imput$ und]paym5t on ! date prescrib$   
!re=1 ! p>tn]%ip %all be liable--  7,a7 
= int]e/ z det]m9$ "u p>agraph 7#b71 &  
7,b7 = any p5alty1 addition to tax1 or  
additional am\nt z det]m9$ "u p>agraph  
7#c74  7#b7 ,int]e/ ,int]e/ det]m9$ "u  
?is p>agraph is ! int]e/ t w\ld be      
det]m9$ by treat+ ! imput$ und]paym5t z 
an und]paym5t ( tax impos$ 9 ! adju/m5t 
ye>4  7#c7 ,p5alties ,p5alties1         
additions to tax1 or additional am\nts  
det]m9$ "u ?is p>agraph are ! p5alties1 
additions to tax1 or additional am\nts t
 w\ld be det]m9$--  7,a7 by apply+      
section #ffea7;a77#b7 to su* failure to 
pay1 &  7,b7 by treat+ ! imput$         
und]paym5t z an und]paym5t ( tax =      
purposes ( "p ,,ii ( sub*apt] ,a ( *apt]
 #fh4  #fbcd4 ,judicial review (        
p>tn]%ip adju/m5t  7a7 ,9 g5]al ,)9 #ij 
days aft] ! date on :i* a notice ( a    

f9al p>tn]%ip adju/m5t is mail$ "u      
section #fbca ) respect to any p>tn]%ip 
taxable ye>1 ! p>tn]%ip may file a      
petition = a readju/m5t = su* taxable   
ye> )--  7#a7 ! ,tax ,c\rt1  7#b7 !     
di/rict c\rt ( ! ,unit$ ,/ates = !      
di/rict 9 :i* ! p>tn]%ip's pr9cipal     
place ( bus9ess is locat$1 or  7#c7 !   
,claims ,c\rt4  7b7 ,jurisdictional     
requirem5t = br++ action 9 di/rict c\rt 
or ,claims ,c\rt  7#a7 ,9 g5]al ,a      
readju/m5t petition "u ?is section may  
be fil$ 9 a di/rict c\rt ( ! ,unit$     
,/ates or ! ,claims ,c\rt only if !     
p>tn]%ip fil+ ! petition deposits ) !   
,secret>y1 on or be=e ! date ! petition 
is fil$1 ! am\nt ( ! imput$ und]paym5t  
7z ( ! date ( ! fil+ ( ! petition7 if ! 
p>tn]%ip adju/m5t 0 made z provid$ by ! 
notice ( f9al p>tn]%ip adju/m5t4 ,! c\rt
 may by ord] provide t ! jurisdictional 
requirem5ts ( ?is p>agraph are satisfi$ 
:]e !re has be5 a good fai? attempt to  
satisfy su* requirem5t & any %ortfall ( 
! am\nt requir$ to be deposit$ is timely

 correct$4  7#b7 ,int]e/ payable ,any   
am\nt deposit$ "u p>agraph 7#a71 :ile   
deposit$1 %all n be treat$ z a paym5t ( 
tax = purposes ( ?is title 7o!r ?an     
*apt] #fg74  7c7 ,scope ( judicial      
review ,a c\rt ) :i* a petition is fil$ 
9 accordance ) ?is section %all h       
jurisdiction to det]m9e all items (     
income1 ga91 loss1 d$uction1 or cr$it ( 
! p>tn]%ip = ! p>tn]%ip taxable ye> to  
:i* ! notice ( f9al p>tn]%ip adju/m5t   
relates1 ! prop] allocation ( su* items 
among ! p>tn]s1 & ! applicability ( any 
p5alty1 addition to tax1 or additional  
am\nt = :i* ! p>tn]%ip may be liable "u 
?is sub*apt]4  7d7 ,det]m9ation ( c\rt  
reviewable ,any det]m9ation by a c\rt "u
 ?is section %all h ! =ce & effect ( a  
decision ( ! ,tax ,c\rt or a f9al       
judgm5t or decree ( ! di/rict c\rt or ! 
,claims ,c\rt1 z ! case may be1 & %all  
be reviewable z su*4 ,! date ( any su*  
det]m9ation %all be treat$ z be+ ! date 
( ! c\rt's ord] ent]+ ! decision4  7e7  
,effect ( decision dismiss+ action ,if  

an action br\ght "u ?is section is      
dismiss$ o!r ?an by reason ( a          
rescission "u section #fbca7;c71 !      
decision ( ! c\rt dismiss+ ! action %all
 be consid]$ z its decision t ! notice (
 f9al p>tn]%ip adju/m5t is correct1 & an
 appropriate ord] %all be ent]$ 9 !     
records ( ! c\rt4  #fbce4 ,p]iod (      
limitations on mak+ adju/m5ts  7a7 ,9   
g5]al ,except z o!rwise provid$ 9 ?is   
section1 no adju/m5t "u ?is subp>t = any
 p>tn]%ip taxable ye> may be made aft] !
 date :i* is #c ye>s aft] ! late/ (--   
7#a7 ! date on :i* ! p>tn]%ip return =  
su* taxable ye> 0 fil$1  7#b7 ! return  
due date = ! taxable ye>1 or  7#c7 !    
date on :i* ! p>tn]%ip fil$ an          
adm9i/rative adju/m5t reque/ ) respect  
to su* ye> "u section #fbbf4  7b7       
,ext5sion by agreem5t ,! p]iod describ$ 
9 subsection 7a7 7includ+ an ext5sion   
p]iod "u ?is subsection7 may be ext5d$  
by an agreem5t ent]$ into by ! ,secret>y
 & ! p>tn]%ip be=e ! expiration ( su*   
p]iod4  7c7 ,special rule 9 case (      

fraud1 etc  7#a7 ,false return ,9 ! case
 ( a false or fraudul5t p>tn]%ip return 
) int5t to evade tax1 ! adju/m5t may be 
made at any "t4  7#b7 ,sub/antial       
omission ( income ,if any p>tn]%ip omits
 f gross income an am\nt prop]ly        
includible !re9 & su* am\nt is describ$ 
9 section #feja7;e77#a77;,a71 subsection
 7a7 %all be appli$ by sub/itut+ #f ye>s
 = #c ye>s4  7#c7 ,no return ,9 ! case (
 a failure by a p>tn]%ip to file a      
return = any taxable ye>1 ! adju/m5t may
 be made at any "t4  7#d7 ,return fil$  
by ,secret>y ,= purposes ( ?is section1 
a return execut$ by ! ,secret>y "u      
subsection 7b7 ( section #fjbj on behalf
 ( ! p>tn]%ip %all n be treat$ z a      
return ( ! p>tn]%ip4  7d7 ,susp5sion :5 
,secret>y mails notice ( adju/m5t ,if   
notice ( a f9al p>tn]%ip adju/m5t )     
respect to any taxable ye> is mail$ "u  
section #fbca1 ! runn+ ( ! p]iod        
specifi$ 9 subsection 7a7 7z modifi$ by 
! o!r provisions ( ?is section7 %all be 
susp5d$--  7#a7 = ! p]iod dur+ :i* an   

action may be br\ght "u section #fbcd   
7&1 if a petition is fil$ "u su* section
 ) respect to su* notice1 until !       
decision ( ! c\rt becomes f9al71 &  7#b7
 = #a ye> !reaft]4  ,,iv ,def9itions &  
special rules  ,sec4 #fbda4 ,def9itions 
& special rules4  #fbda4 ,def9itions &  
special rules  7a7 ,def9itions & special
 rules ,= purposes ( ?is sub*apt]--     
7#a7 ,p>tn]%ip ,! t]m p>tn]%ip means any
 p>tn]%ip requir$ to file a return "u   
section #fjca7;a74  7#b7 ,p>tn] ,! t]m  
p>tn] means--  7,a7 a p>tn] 9 !         
p>tn]%ip1 &  7,b7 any o!r p]son ^:      
income tax liability "u subtitle ,a is  
det]m9$ 9 :ole or 9 "p by tak+ into     
acc\nt directly or indirectly income1   
ga91 d$uction1 or loss ( ! p>tn]%ip4    
7b7 ,p>tn]%ip adju/m5t ,! t]m p>tn]%ip  
adju/m5t means any adju/m5t 9 ! am\nt ( 
any item ( income1 ga91 loss1 d$uction1 
or cr$it ( a p>tn]%ip1 or any p>tn]'s   
di/ributive %>e !re(4  7c7 ,return due  
date ,! t]m return due date means1 )    
respect to ! taxable ye>1 ! date        

prescrib$ = fil+ ! p>tn]%ip return = su*
 taxable ye> 7det]m9$ )\t reg>d to      
ext5sions74  7d7 ,jo9t & sev]al         
liability  7#a7 ,9 g5]al ,! p>tn]%ip &  
any p>tn] ( ! p>tn]%ip %all be jo9tly & 
sev]ally liable = any imput$ und]paym5t 
& any p5alty1 addition to tax1 or       
additional am\nt attributable !reto4    
7#b7 ,p]iod = assessm5t ( p>tn]s ,!     
p]iod = assessm5t ( an imput$ und]paym5t
 ) respect to a p>tn] ( a p>tn]%ip %all 
n expire e>li] ?an #c ye>s aft] ! date  
on :i* an assessm5t ( su* imput$        
und]paym5t 0 made ) respect to !        
p>tn]%ip4  7#c7 ,det]m9+ p>tn]s ,a p]son
 %all be treat$ z p>tn] ( ! p>tn]%ip if 
su* p]son is a p>tn] ( su* p>tn]%ip at  
any "t dur+ ! review$ or adju/m5t ye>4  
7e7 ,paym5ts nond$uctible ,no d$uction  
%all be all[$ "u subtitle ,a = any      
paym5t requir$ to be made by a p>tn]%ip 
"u ?is sub*apt]4  7f7 ,special rule =   
d$uctions1 losses1 & cr$its ( =eign     
p>tn]%ips ,except to ! ext5t o!rwise    
provid$ 9 regulations1 9 ! case ( any   

p>tn]%ip ! p>tn]%ip repres5tative ( :i* 
resides outside ! ,unit$ ,/ates or !    
books ( :i* are ma9ta9$ outside ! ,unit$
 ,/ates1 no d$uction1 loss1 or cr$it    
%all be all[able to any p>tn] unless    
section #fjca is compli$ ) = !          
p>tn]%ip's taxable ye> 9 :i* su*        
d$uction1 loss1 or cr$it arose at su* "t
 z ! ,secret>y prescribes by            
regulations4  7g7 ,p>tn]%ips hav+       
pr9cipal place ( bus9ess outside ,unit$ 
,/ates ,= purposes ( sections #fbcd1 a  
pr9cipal place ( bus9ess locat$ outside 
! ,unit$ ,/ates %all be treat$ z locat$ 
9 ! ,di/rict ( ,columbia4  7h7          
,p>tn]%ips 9 cases "u title #aa ( ,unit$
 ,/ates ,code  7#a7 ,susp5sion ( p]iod (
 limitations on mak+ adju/m5t1          
assessm5t1 or collection ,! runn+ ( any 
p]iod ( limitations provid$ 9 ?is       
sub*apt] on mak+ a p>tn]%ip adju/m5t 7or
 provid$ by section #feja or #fejb on ! 
assessm5t or collection ( any imput$    
und]paym5t det]m9$ "u ?is sub*apt]7     
%all1 9 a case "u title #aa ( ! ,unit$  

,/ates ,code1 be susp5d$ dur+ ! p]iod   
dur+ :i* ! ,secret>y is prohibit$ by    
reason ( su* case f mak+ ! adju/m5t 7or 
assessm5t or collection7 &--  7,a7 =    
adju/m5t or assessm5t1 #fj days !reaft]1
 &  7,b7 = collection1 #f mon?s !reaft]4
  ,a rule simil> to ! rule ( section    
#fbac7;f77#b7 %all apply = purposes (   
section #fbcb7;b74  7#b7 ,susp5sion (   
p]iod ( limitation = fil+ = judicial    
review ,! runn+ ( ! p]iod specifi$ 9    
section #fbcd %all1 9 a case "u title   
#aa ( ! ,unit$ ,/ates ,code1 be susp5d$ 
dur+ ! p]iod dur+ :i* ! p>tn]%ip is     
prohibit$ by reason ( su* case f fil+ a 
petition "u section #fbcd & = #fj days  
!reaft]4  4  7#b7 ,cl]ical am5dm5t ,!   
table ( sub*apt]s = *apt] #fc ( su*     
,code is am5d$ by ins]t+ aft] ! item    
relat+ to sub*apt] ,b ! foll[+ new item3
  ,sub*apt] ,c4 ,treatm5t ( p>tn]%ips  4
  7d7 ,con=m+ am5dm5ts  7#a7 ,section   
#fdbb ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by /rik+ p>agraph 7#ab74  7#b7
 ,section #feja7n7 ( su* ,code is       

am5d$-- 7,a7 by /rik+ p>agraphs 7#b7 &  
7#c71 &  7,b7 by /rik+ ,cross ref]5ces &
 all t foll[s ?r\gh ,= p]iod (          
limitations & ins]t+ ,cross ref]5ce4--,=
 p]iod ( limitations4  7#c7 ,section    
#fejc7;a77#a7 ( su* ,code is am5d$ by   
/rik+ 7or section #fbbi & all t foll[s  
?r\gh ( section #fbcj7;a774  7#d7       
,section #fejd ( su* ,code is am5d$ by  
/rik+ p>agraph 7#aa74  7#e7 ,section    
#feaa ( su* ,code is am5d$ by /rik+     
subsection 7g74  7#f7 ,section          
#feab7;b77#c7 ( su* ,code is am5d$ by   
/rik+ ! second s5t5ce4  7#g7 ,section   
#feae ( su* ,code is am5d$ by /rik+     
p>agraph 7#f74  7#h7 ,section #ffja7;c7 
( su* ,code is am5d$ by /rik+ ! la/     
s5t5ce4  7#i7 ,section #gdba7;a7 ( su*  
,code is am5d$ by /rik+ #fbbe7;b71      
#fbdf7;b7 & ins]t+ #fbcb7;c74  7#aj7    
,section #gdbb ( su* ,code is am5d$ by  
/rik+ subsection 7h74  7#aa7 ,section   
#gdei7;c7 ( su* ,code is am5d$ by /rik+ 
section #fbbf & all t foll[s ?r\gh or   
#fbeb & ins]t+ section #fbcd4  7#ab7    

,section #gdhb7;b77#a7 ( su* ,code is   
am5d$--  7,a7 by /rik+ section #fbbf1   
#fbbh1 #fbdg1 or #fbeb 9 subp>agraph    
7,e7 & ins]t+ section #fbcd1  7,b7 by   
/rik+ subp>agraph 7,f71 by /rik+ or at !
 end ( subp>agraph 7,e7 & ins]t+ a      
p]iod1 & by ins]t+ or at ! end (        
subp>agraph 7,d71 &  7,c7 by /rik+      
section #fbbf1 #fbbh7;a71 or #fbcd7;c7 9
 ! la/ s5t5ce & ins]t+ section #fbcd4   
7#ac7 ,section #gdhe7;b7 ( su* ,code is 
am5d$ by /rik+ section #fbbf1 #fbbh7;a71
 #fbdg1 or #fbeb & ins]t+ section #fbcd4
  7e7 ,effective date ,except z provid$ 
9 subsection 7b77#d71 ! am5dm5ts made by
 ?is section %all apply to returns fil$ 
= p>tn]%ip taxable ye>s end+ aft]       
,decemb] #ca1 #bjad1 except t a p>tn]%ip
 may elect 7at su* "t & 9 su* =m & mann]
 z ! ,secret>y ( ! ,treasury may        
prescribe7 = su* am5dm5ts to apply to   
any return ( ! p>tn]%ip fil$ = p>tn]%ip 
taxable ye>s end+ aft] ! date ( !       
enactm5t ( ?is ,act & be=e ,janu>y #a1  
#bjae4