Page:United States Statutes at Large Volume 111 Part 1.djvu/1052

 Ill STAT. 1028 PUBLIC LAW 105-34—AUG. 5, 1997 "Notwithstanding subparagraph (B), any person treated under subsection (c) as a party to an action shall be permitted to participate in such action (or file a readjustment petition under subsection (b) or paragraph (2) of this subsection) solely for the purpose of asserting that the period of limitations for assessing any tax attributable to partnership items has expired with respect to such person, and the court having jurisdiction of such action shall have jurisdiction to consider such assertion.". (c) TAX COURT JURISDICTION TO DETERMINE OVERPAYMENTS ATTRIBUTABLE TO AFFECTED ITEMS. — (1) Paragraph (6) of section 6230(d) is amended by striking "(or an affected item)". (2) Paragraph (3) of section 6512(b) is amended by adding at the end the following new sentence: "In the case of a credit or refund relating to an affected item (within the meaning of section 6231(a)(5)), the preceding sentence shall be applied by substituting the periods under sections 6229 and 6230(d) for the periods under section 6511(b)(2), (c), and (d).". (d) VENUE ON APPEAL.— (1) Paragraph (1) of section 7482(b) is amended by striking "or" at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting ", or", and by inserting after subparagraph (E) the following new subparagraph: "(F) in the case of a petition under section 6234(c)— "(i) the legal residence of the petitioner if the petitioner is not a corporation, and " (ii) the place or office applicable under subparagraph (B) if the petitioner is a corporation.". (2) The last sentence of section 7482(b)(1) is amended by striking "or 6228(a)" and inserting ", 6228(a), or 6234(c)". (e) OTHER PROVISIONS.— (1) Subsection (c) of section 7459 is amended by striking "or section 6228(a)" and inserting ", 6228(a), or 6234(c)". (2) Subsection (o) of section 6501 is amended by adding at the end the following new paragraph: "(3) For declaratory judgment relating to treatment of items other than partnership items with respect to an oversheltered return, see section 6234.". (3) Subsection (a) of section 7421, as amended by section 1222, is amended by inserting "6225(b)," after "6213(a),". 26 USC 6225 (f) EFFECTIVE DATE.—The amendments made by this section i^ote. shall apply to partnership taxable years ending after the date of the enactment of this Act. SEC. 1240. TREATMENT OF PREMATURE PETITIONS FILED BY NOTICE PARTNERS OR 5-PERCENT GROUPS. (a) IN GENERAL.— Subsection (b) of section 6226 (relating to judicial review of final partnership administrative adjustments) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: " (5) TREATMENT OF PREMATURE PETITIONS.—If — "(A) a petition for a readjustment of partnership items for the taxable year involved is filed by a notice partner (or a 5-percent group) during the 90-day period described in subsection (a), and

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