[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(f)-1]

[Page 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(f)-1  Scope of judicial review.

    (a) In general. A court reviewing a notice of final partnership 
administrative adjustment has jurisdiction to determine all partnership 
items for the taxable year to which the notice relates and the proper 
allocation of such items among the partners. Thus, the review is not 
limited to the items adjusted in the notice. In addition, the court has 
jurisdiction in the partnership-level proceeding to determine any 
penalty, addition to tax, or additional amount that relates to an 
adjustment to a partnership item. However, the court does not have 
jurisdiction in the partnership-level proceeding to consider any 
partner-level defenses to any penalty, addition to tax, or additional 
amount that relates to an adjustment to a partnership item. See section 
6230(c)(4) and Sec. 301.6221-1(c) and (d).
    (b) Example. The provisions of paragraph (a) of this section may be 
illustrated by the following example:

    Example. The Internal Revenue Service issues a notice of final 
partnership administrative adjustment with respect to Partnership ABC in 
which the only item adjusted is depreciation. A petition for judicial 
review of that notice is filed. During the judicial proceeding, a 
partner of ABC, in accordance with the applicable court rules, raises an 
issue relating to the treatment of intangible drilling costs. The court 
reviewing the notice has jurisdiction to determine the intangible 
drilling cost issue in addition to the depreciation issue.

    (c) 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. 301.6226(f)-1T contained in 26 CFR 
part 1, revised April 1, 2001.

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