Tax Court Rule 310

RULE 310. GENERAL²

(a) Applicability: The Rules of this Title XXX set forth the provisions which apply to actions for declaratory judgment relating to treatment of items other than partnership items with respect to an oversheltered return pursuant to Code section 6234. Except as otherwise provided in this Title, the other Rules of Practice and Procedure of the Court, to the extent pertinent, are applicable to such actions for declaratory judgment.
(b) Definitions: As used in the Rules in this Title?

(1) An "oversheltered return action" means an action for declaratory judgment provided for in Code section 6234 relating to the treatment of items other than partnership items with respect to an oversheltered return.

(2) The term "partnership item" means any item described in Code section 6231(a)(3).

(3) An "oversheltered return" means an income tax return which?

(A) shows no taxable income for the taxable year, and

(B) shows a net loss from partnership items. See Code sec. 6234(b).

(4) "Declaratory judgment" is the decision of the Court in an oversheltered return action.
(c) Jurisdiction: The Court shall have jurisdiction of an action for declaratory judgment under this Title when the following conditions are satisfied:

(1) The Commissioner has issued a notice of adjustment. See Code sec. 6234(a)(3).

(2) A petition for declaratory judgment is filed with the Court within the period specified in Code section 6234(c). See Code sec. 7502.

¹New Title XXX sets forth procedures for declaratory judgment actions under Code section 6234, added by sec. 1231(a) of the Taxpayer Relief Act of 1997, Pub. L. 105?34, 111 Stat. 1020. Code section 6234 provides for a declaratory judgment relating to the treatment of items other than partnership items with respect to an oversheltered return and is effective with respect to partnership tax years ending after August 5, 1997. Similarly, the Rules of this Title XXX are effective as to oversheltered return actions commenced with respect to partnership tax years ending after August 5, 1997.
² New Rule 310 is effective as to oversheltered return actions commenced with respect to partnership tax years ending after August 5, 1997.

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