Page:United States Statutes at Large Volume 111 Part 1.djvu/1046

 Ill STAT. 1022 PUBLIC LAW 105-34—AUG. 5, 1997 made in accordance with this section shall be taken into account regardless of whether any assessment has been made with respect to such adjustment. "(2) SPECIAL RULE IN CASE OF COMPUTATIONAL ADJUST- MENT.— In the case of a computational adjustment that is made in connection with a partnership proceeding under this subchapter (other than under this section), the provisions of paragraph (1) shall apply only if the computational adjustment is made within the period prescribed by section 6229 for assessing any tax under subtitle A which is attributable to any partnership item or affected item for the taxable year involved. " (3) CONVERSION TO DEFICIENCY PROCEEDING. — If — "(A) after the notice referred to in subsection (a) is mailed to a taxpayer for a taxable year but before the expiration of the period for filing a petition with the Tax Court under subsection (c) (or, if a petition is filed with the Tax Court, before the Tax Court makes a declaration for that taxable year), the treatment of any partnership item for the taxable year is finally determined, or any such item ceases to be a partnership item pursuant to section 6231(b), and "(B) as a result of that final determination or cessation, a deficiency can be determined with respect to the items that are the subject of the notice of adjustment, the notice of adjustment shall be treated as a notice of deficiency under section 6212 and any petition filed in respect of the notice shall be treated as an action brought under section 6213. "(4) FINALLY DETERMINED.— For purposes of this subsection, the treatment of partnership items shall be treated as finally determined if— "(A) the Secretary enters into a settlement agreement (within the meaning of section 6224) with the taxpayer regarding such items, "(B) a notice of final partnership administrative adjustment has been issued and— "(i) no petition has been filed under section 6226 and the time for doing so has expired, or "(ii) a petition has been filed under section 6226 and the decision of the court has become final, or "(C) the period within which any tax attributable to such items may be assessed against the taxpayer has expired. "(h) SPECIAL RULES IF SECRETARY INCORRECTLY DETERMINES APPLICABLE PROCEDURE, — " (1) SPECIAL RULE IF SECRETARY ERRONEOUSLY MAILS NOTICE OF ADJUSTMENT.— I f the Secretary erroneously determines that subchapter B does not apply to a taxable year of a taxpayer and consistent with that determination timely mails a notice of adjustment to the taxpayer pursuant to subsection (a) of this section, the notice of adjustment shall be treated as a notice of deficiency under section 6212 and any petition that is filed in respect of the notice shall be treated as an action brought under section 6213. " (2) SPECIAL RULE IF SECRETARY ERRONEOUSLY MAILS NOTICE OF DEFICIENCY.— I f the Secretary erroneously determines that subchapter B applies to a taxable year of a taxpayer

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