[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: 26CFR301.6226(e)-1]

[Page 177-178]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Assessment
 
Sec. 301.6226(e)-1  Jurisdictional requirement for bringing an action 
in District Court or United States Court of Federal Claims.

    (a) Amount to be deposited--(1) In general. The jurisdictional 
amount that the filing partner (or, in the case of a petition filed by a 
5-percent group, each member of the group, or, for civil actions 
beginning on or after April 2, 2002, in the case of a petition filed by 
a pass-thru partner, each indirect partner holding an interest through 
the pass-thru partner) shall deposit is the amount by which the tax 
liability of the partner would be increased if the treatment of the 
partnership items on the partner's return were made consistent with the 
treatment of partnership items on the partnership return, as adjusted by 
the notice of final partnership administrative adjustment. The partner 
is not required to pay other outstanding liabilities in order to deposit 
a jurisdictional amount.
    (2) Example. The provisions of paragraph (a)(1) of this section may 
be illustrated by the following example:

    Example. A files a petition for readjustment of partnership items in 
the United States Court of Federal Claims. A's tax liability would be 
increased by $4,000 if partnership items on A's return were conformed to 
the partnership return, as adjusted by the notice of final partnership 
administrative adjustment. A has an unpaid liability of $10,000 
attributable to nonpartnership items. A is required to deposit $4,000 in 
order to satisfy the jurisdictional requirement.

    (b) Deposit taken into account in computing interest. The amount 
deposited is

[[Page 178]]

treated as a payment of tax for purposes of chapter 67 of the Internal 
Revenue Code (relating to interest).
    (c) Deposit generally not treated as payment of tax. Except as 
provided in paragraph (b) of this section, an amount deposited under 
section 6226(e) shall not be treated as a payment of tax. Thus, the 
Internal Revenue Service may proceed against the depositor for a 
deficiency based on nonpartnership items without regard to this deposit.
    (d) Amount deposited may be applied against assessment. If the 
restriction on assessment provided under section 6225(a) lapses with 
respect to a deficiency attributable to partnership items for a 
partnership taxable year while an amount is on deposit under section 
6226(e) in connection with a petition relating to those items, the 
Internal Revenue Service may apply the amount deposited against any such 
deficiency that is assessed.
    (e) Effective date. Except as otherwise provided in paragraph (a)(1) 
of this section, this section is applicable to civil actions beginning 
on or after October 4, 2001. For civil actions beginning prior to 
October 4, 2001, see Sec. 301.6226(e)-1T contained in 26 CFR part 1, 
revised April 1, 2001.

[T.D. 8965, 66 FR 50554, Oct. 4, 2001]