The BBA Partnership audit and litigation provisions were enacted in 2015 and became effective for tax years beginning on or after January 1, 2018. Internal Revenue Code (“IRC”) §6321(a) requires the IRS mail three notices to the partnership and the partnership representative:
1. Notice of the initiation of partnership proceedings, which advises the partnership and the partnership representative of the initiation of administrative proceedings at the partnership level of any partnership-related item;
2. Notice of proposed partnership adjustments (“NOPPA”) resulting from the proceedings, which sets out the proposed adjustments, any imputed underpayment the partnership will owe and gives the partnership an opportunity to make a modification request; and
3. Notice of final partnership adjustment (“FPA”), which sets out the final adjustments and any imputed underpayment and provides the partnership with the opportunity to petition the Tax Court, the Court of Federal Claims or a district court and to make any push-out election.
Robert S. Horwitz is a Principal at Hochman Salkin Toscher Perez P.C., former Chair of the Taxation Section, California Lawyers’ Association, a Fellow of the American College of Tax Counsel, a former Assistant United States Attorney and a former Trial Attorney, United States Department of Justice Tax Division. He represents clients throughout the United States and elsewhere involving federal and state administrative civil tax disputes and tax litigation as well as defending clients in criminal tax investigations and prosecutions. In 2022 the Tax Section of the California Lawyers Association awarded him the Joanne M. Garvey Award for lifetime achievement in and contributions to the field of tax law.
For more information, please contact Robert Horwitz at horwitz@taxlitigator.com.
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