RULE 241. COMMENCEMENT OF PARTNERSHIP ACTION
- (a) Commencement of Action: A partnership action shall be
commenced by filing a petition with the Court. See Rule 20, relating to commencement of case; Rule 22, relating to the place and manner of
filing the petition; Rule 32, relating
to form of pleadings; and Rule 34(d),
relating to number of copies to be filed; and Rule 240(d), relating to caption of papers.
- (b) Contents of Petition: Each petition shall be entitled
either "Petition for Readjustment of Partnership Items under Code
Section 6226" or "Petition for Adjustment of Partnership Items
under Code Section 6228." Each such petition shall contain the
allegations described in paragraph (c) of this Rule, and the
allegations described in paragraph (d) or (e) of this Rule.
- (c) All Petitions: All petitions in partnership actions shall
contain the following:
- (1) The name and address of the petitioner.
- (2) The name, employer identification number, and principal
place of business of the partnership at the time the petition is
filed.
- (3) The City and State of the office of the Internal Revenue
Service with which the partnership's return for the period in
controversy was filed.
- A claim for reasonable litigation or administrative costs shall
not be included in the petition in a partnership action. For the
requirements as to claims for reasonable litigation or
administrative costs, see Rule 231.
- (d) Petition for Readjustment of Partnership Items: In addition
to including the information specified in paragraph (c) of this
Rule, a petition for readjustment of partnership items shall also
contain:
- (1) All Petitions: All petitions for readjustment of
partnership items shall contain:
- (A) The date of the notice of final partnership administrative
adjustment and the City and State of the office of the Internal
Revenue Service which issued the notice.
- (B) The year or years or other periods for which the notice of
final partnership administrative adjustment was issued.
- (C) Clear and concise statements of each and every error which
the petitioner alleges to have been committed by the Commissioner
in the notice of final partnership administrative adjustment. The
assignments of error shall include issues in respect of which the
burden of proof is on the Commissioner. Any issues not raised in
the assignments of error, or in the assignments of error in any
amendment to the petition, shall be deemed to be conceded. Each
assignment of error shall be set forth in a separately lettered
subparagraph.
- (D) Clear and concise lettered statements of the facts on which
the petitioner bases the assignments of error, except with respect
to those assignments of error as to which the burden of proof is on
the Commissioner.
- (E) A prayer setting forth relief sought by the petitioner.
- (F) The signature, mailing address, and telephone number of
each petitioner or each petitioner's counsel, as well as counsel's
Tax Court bar number.
- (G) A copy of the notice of final partnership administrative
adjustment, which shall be appended to the petition, and with which
there shall be included so much of any statement accompanying the
notice as is material to the issues raised by the assignments of
error. If the notice of final partnership administrative adjustment
or any accompanying statement incorporates by reference any prior
notices, or other material furnished by the Internal Revenue
Service, such parts thereof as are material to the assignments of
error likewise shall be appended to the petition.
- (2) Petitions by Tax Matters Partner: In addition to including
the information specified in paragraph (d)(1) of this Rule, a
petition filed by a tax matters partner shall also contain a
separate numbered paragraph stating that the pleader is the tax
matters partner.
- (3) Petitions by Other Partners: In addition to including the
information specified in paragraph (d)(1) of this Rule, a petition
filed by a partner other than the tax matters partner shall also
contain:
- (A) A separate numbered paragraph stating that the pleader is
a notice partner or a representative of a 5-percent group (see Code
Section 6226(b)(1)).
- (B) A separate numbered paragraph setting forth facts
establishing that the pleader satisfies the requirements of Code
Section 6226(d).
- (C) A separate numbered paragraph stating the name and current
address of the tax matters partner.
- (D) A separate numbered paragraph stating that the tax matters
partner has not filed a petition for readjustment of partnership
items within the period specified in Code Section 6226(a).
- (e) Petition for Adjustment of Partnership Items: In addition
to including the information specified in paragraph (c) of this
Rule, a petition for adjustment of partnership items shall also
contain:
- (1) A statement that the petitioner is the tax matters
partner.
- (2) The date that the administrative adjustment request was
filed and other proper allegations showing jurisdiction in the
Court in accordance with the requirements of Code Section
6228(a)(1) and (2).
- (3) The year or years or other periods to which the
administrative adjustment request relates.
- (4) The city and State of the office of the Internal Revenue
Service with which the administrative adjustment request was
filed.
- (5) A clear and concise statement describing each partnership
item on the partnership return that is sought to be changed, and
the basis for each such requested change. Each such statement shall
be set forth in a separately lettered subparagraph.
- (6) Clear and concise lettered statements of the facts on which
the petitioner relies in support of such requested changes in
treatment of partnership items.
- (7) A prayer setting forth relief sought by the petitioner.
- (8) The signature, mailing address, and telephone number of the
petitioner or the petitioner's counsel, as well as counsel's Tax
Court bar number.
- (9) A copy of the administrative adjustment request shall be
appended to the petition.
- (f) Notice of Filing:
- (1) Petitions by Tax Matters Partner: Within 5 days after
receiving the Notification of Receipt of Petition from the Court,
the tax matters partner shall serve notice of the filing of the
petition on each partner in the partnership as required by Code
Section 6223(g). Said notice shall include the docket number
assigned to the case by the Court (see Rule
35) and the date the petition was served by the Clerk on the
Commissioner.
- (2) Petitions by Other Partners: Within 5 days after receiving
the Notification of Receipt of Petition from the Court, the
petitioner shall serve a copy of the petition on the tax matters
partner, and at the same time notify the tax matters partner of the
docket number assigned to the case by the Court (see Rule 35) and the date the petition was served by
the Clerk on the Commissioner. Within 5 days after receiving a copy
of the petition and the aforementioned notification from the
petitioner, the tax matters partner shall serve notice of the
filing of the petition on each partner in the partnership as
required by Code Section 6223(g). Said notice shall include the
docket number assigned to the case by the Court and the date
the petition was served by the Clerk on the Commissioner.
- (g) Copy of Petition To Be Provided All Partners: Upon request
by any partner in the partnership as referred to in Code Section
6231(a)(2)(A), the tax matters partner shall, within 10 days of
receipt of such request, make available to such partner a copy of
any petition filed by the tax matters partner or by any other
partner.
- (h) Joinder of Parties:
- (1) Permissive Joinder: A separate petition shall be filed with
respect to each notice of final partnership administrative
adjustment or each administrative adjustment request issued to
separate partnerships. However, a single petition for readjustment
of partnership items with respect to more than one notice of final
partnership administrative adjustment or administrative adjustment
request if the notices or requests pertain to the same partnership.
For the procedures to be followed by partners who wish to intervene
or participate in a partnership action, see Rule 245.
- (2) Severance or Other Orders: With respect to a case based
upon multiple notices of final partnership administrative
adjustment or administrative adjustment requests, the Court may
order a severance and a separate case to be maintained with respect
to one or more of such notices or requests whenever it appears to
the Court that proceeding separately is in furtherance of
convenience, or to avoid prejudice, or when separate trials will be
conducive to expedition or economy.
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