[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: 26CFR301.6501(o)-2]

[Page 371-372]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Limitations
 
Sec. 301.6501(o)-2  Special rules for partnership items of federally 
registered partnerships.

    (a) In general. In the case of any tax imposed by subtitle A with 
respect to any person, the period for assessing a deficiency 
attributable to any partnership item of a federally registered 
partnership shall not expire before the later of--
    (1) The date which is 4 years after the date on which the return of 
the federally registered partnership for the partnership taxable year in 
which the item arose is filed (or, if later, the date prescribed for 
filing the return), or
    (2) If the name or address of the person against whom the assessment 
is sought does not appear on the return of the federally registered 
partnership, the date which is 1 year after the date on which a 
satisfactory identifying statement is furnished in writing to the 
director of the service center with which the partnership return is 
filed. A satisfactory identifying statement is a written statement 
providing the name, address, and taxpayer identification number of both 
the partner and the partnership. The statement shall note the 
partnership taxable year for which the statement is furnished.
    (b) ``Pass through'' entity as partner. In the case of a partnership 
having a ``pass through'' entity (i.e., partnership, electing small 
business corporation (as defined in section 1371(b)), trust, estate, or 
nominee) as a partner, the 1 year period described in paragraph (a)(2) 
of this section shall not begin with respect to the person to be 
assessed until the chain of ownership linking the taxpayer with the 
federally registered partnership in which the item originally arose is 
fully disclosed.

    Example. Partnership U, a federally registered partnership, has two 
partners, Partnerships W and X. The partners of W are A and B, who are 
individuals, and T, a trust whose beneficiaries are individuals C and D. 
The partners of X are E, an individual, and Partnership Y whose partners 
are individuals F, G, and H. U and X properly disclose the identity of 
their partners. W, however, discloses the identity of only A and B, and 
Y discloses the identity of only F and G. The period of limitation 
described in paragraph (a) of this section for items attributable to U 
does not expire with respect to T, C, D, and H until one year after the 
chain of ownership linking these taxpayers with U is fully disclosed.

    (c) Federally registered partnership--(1) In general. With respect 
to any partnership taxable year, a federally registered partnership is 
any partnership--
    (i) Interests in which have been offered for sale at any time during 
the taxable year or a prior taxable year in an offering required to be 
registered with the Securities and Exchange Commission, or
    (ii) Which, at any time during the taxable year or a prior taxable 
year, was subject to the annual reporting requirements of the Securities 
and Exchange Commission which relate to the protection of investors in 
the partnership.

For purposes of the preceding sentence an interest is ``offered for 
sale'' when it is the subject of an ``offer for sale'' as that term is 
used in section 2 of the Securities Act of 1933 (15 U.S.C. 77b).
    (2) Certain reporting requirements not taken into account. A 
requirement to file reports with the Securities and Exchange Commission 
for any purpose other than to protect investors does not cause the 
partnership to be treated as a federally registered partnership. For 
example, a brokerage firm organized as a partnership is not a federally 
registered partnership merely because it files reports required by the 
Commission for regulatory purposes.
    (d) Extension by agreement--(1) In general. Any general partner of a 
federally registered partnership (or any other person authorized by the 
partnership) may, prior to the expiration of the limitation period 
described in paragraph

[[Page 372]]

(a) of this section, extend the period for assessing a deficiency 
attributable to a partnership item for any period of time agreed upon in 
writing. The extension shall become effective when the agreement has 
been executed by the district director or the service center director 
and shall be binding on all persons whose liability for tax imposed by 
subtitle A is affected in whole or in part by partnership items flowing 
from the partnership.
    (2) Authorization of other persons. The partnership may authorize 
persons other than the general partners to extend the period of 
limitation for assessing a deficiency attributable to a partnership 
item. This authorization shall be in writing, shall clearly identify the 
person being authorized and the action being authorized, and shall be 
signed by all the general partners. The authorization shall become 
effective when filed with the district director and shall remain in 
effect until a written revocation signed as provided in the preceding 
sentence is filed.
    (3) Removing authority of general partners. A partnership wishing to 
deny to some or all of the general partners the authority to execute an 
agreement extending the period of limitation for assessment may do so by 
submitting a written statement to that effect. The statement shall 
either identify the partners exclusively authorized to execute such an 
agreement or declare that one or more named partners or all partners 
lack the authority to execute such an agreement. The statement shall be 
signed by all the general partners. The statement shall become effective 
when filed with the district director and shall remain in effect until a 
statement revoking or superseding it and signed as provided in the 
preceding sentence is filed.
    (e) Special period of limitation with respect to carryback of net 
operating loss, capital, loss, etc. The provisions of section 6501(o) 
must also be taken into account in applying the various special periods 
of limitation prescribed in sections 6501 (h), (i) and (j). Thus, to the 
extent that a carryback is attributable to a partnership item of a 
federally registered partnership, the period for assessing a deficiency 
attributable to that carryback shall not expire before the date 
determined under paragraph (a) of this section with respect to the 
partnership taxable year in which the item arose.
    (f) Otherwise applicable limitation period. The special provisions 
of section 6501(o) and this section do not terminate any otherwise 
applicable period for assessing a deficiency. Thus, the fact that more 
than 4 years have elapsed since the filing of the partnership return for 
the year in issue does not prevent assessment against a partner based on 
partnership items if an otherwise applicable period of limitation for 
the partner has not yet expired

    Example. Partnership V files its return for the taxable year ending 
December 31, 1980, on April 15, 1981. A, a partner in Partnership V, 
agrees to extend the assessment period for A's taxable year ending 
December 31, 1980, until September 30, 1985. The partnership does not 
agree to any extension under section 6501(o)(3) so that the period for 
assessing a deficiency attributable to partnership items could expire on 
April 15, 1985. A deficiency may be assessed against A for 1980 at any 
time prior to October 1, 1985, even if that deficiency is based on 
partnership items.

    (g) Effective date. This section and Sec. 301.6501(o)-3 are 
effective generally for partnership items arising in partnership taxable 
years beginning after December 31, 1978 and before September 4, 1982. 
This section shall not apply, however, to any partnership taxable year 
with respect to which the amendments made to Code section 6501(o) by 
section 402 of the Tax Equity and Fiscal Responsibility Act of 1982 are 
effective. See section 407(a)(3) of that Act.

(Sec. 6501(o) (as it read before the enactment of the Tax Equity and 
Fiscal Responsibility Act of 1982) and 7805 of the Internal Revenue Code 
of 1954 (92 Stat. 2818, 26 U.S.C. 6501(o); 68A Stat. 917, 26 U.S.C. 
7805))

[T.D. 7884, 48 FR 16242, Apr. 15, 1983]