[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6222(a)-1]

[Page 163]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Assessment
 
Sec. 301.6222(a)-1  Consistent treatment of partnership items.

    (a) In general. The treatment of a partnership item on the partner's 
return must be consistent with the treatment of that item by the 
partnership on the partnership return in all respects including the 
amount, timing, and characterization of the item.
    (b) Treatment must be consistent with partnership return. The 
treatment of a partnership item on the partner's return must be 
consistent with the treatment of that item on the partnership return. 
Thus, a partner who treats an item consistently with a schedule or other 
information furnished to the partner by the partnership has not 
satisfied the requirement of paragraph (a) of this section if the 
treatment of that item is inconsistent with the treatment of the item on 
the partnership return actually filed. For rules relating to the 
election to be treated as having reported the inconsistency where the 
partner treats an item consistently with an incorrect schedule, see 
Sec. 301.6222(b)-3.
    (c) Examples. The following examples illustrate the principles of 
this section:

    Example 1. B is a partner of Partnership P. Both B and P use the 
calendar year as the taxable year. In December 2001, P receives an 
advance payment for services to be performed in 2002 and reports this 
amount as income for calendar year 2001. However, B reports B's 
distributive share of this amount on B's income tax return for 2002 and 
not on B's return for 2001. B's treatment of this partnership item is 
inconsistent with the treatment of the item by P.
    Example 2. Partnership P incurred certain start-up costs before P 
was actively engaged in its business. P capitalized these costs. C, a 
partner in P, deducted C's proportionate share of these start-up costs. 
C's treatment of the partnership expenditure is inconsistent with the 
treatment of that item by P.
    Example 3. D is a partner in partnership P. P reports a loss of 
$100,000 on its return, $5,000 of which it reports on the Schedule K-1 
attached to its return as D's distributive share. However, P reports 
$15,000 as D's distributive share of P's loss on the Schedule K-1 
furnished to D. D reports the $15,000 loss on D's income tax return. D 
has not satisfied the consistent reporting requirement. See, however, 
Sec. 301.6222(b)-3 for an election to be treated as having reported the 
inconsistency.

    (d) Effective date. This section is applicable to partnership 
taxable years beginning on or after October 4, 2001.
    For years beginning prior to October 4, 2001, see Sec. 301.6222(a)-
1T contained in 26 CFR part 1, revised April 1, 2001.

[T.D. 8965, 66 FR 50545, Oct. 4, 2001]