Treasury Regulations (26 C.F.R.)
26 CFR § 301.6222(a)-1
Consistent treatment of partnership items.
# (a) In general.
The treatment of a partnership item on the partner's return must be consistent with the treatment of that item by the partnership on the partnership return in all respects including the amount, timing, and characterization of the item.
# (b) Treatment must be consistent with partnership return.
The treatment of a partnership item on the partner's return must be consistent with the treatment of that item on the partnership return. Thus, a partner who treats an item consistently with a schedule or other information furnished to the partner by the partnership has not satisfied the requirement of paragraph (a) of this section if the treatment of that item is inconsistent with the treatment of the item on the partnership return actually filed. For rules relating to the election to be treated as having reported the inconsistency where the partner treats an item consistently with an incorrect schedule, see § 301.6222(b)-3.
# (c) Examples.
The following examples illustrate the principles of this section:
Example 1.
B is a partner of Partnership P. Both B and P use the calendar year as the taxable year. In December 2001, P receives an advance payment for services to be performed in 2002 and reports this amount as income for calendar year 2001. However, B reports B's distributive share of this amount on B's income tax return for 2002 and not on B's return for 2001. B's treatment of this partnership item is inconsistent with the treatment of the item by P.
Example 2.
Partnership P incurred certain start-up costs before P was actively engaged in its business. P capitalized these costs. C, a partner in P, deducted C's proportionate share of these start-up costs. C's treatment of the partnership expenditure is inconsistent with the treatment of that item by P.
Example 3.
D is a partner in partnership P. P reports a loss of $100,000 on its return, $5,000 of which it reports on the Schedule K-1 attached to its return as D's distributive share. However, P reports $15,000 as D's distributive share of P's loss on the Schedule K-1 furnished to D. D reports the $15,000 loss on D's income tax return. D has not satisfied the consistent reporting requirement. See, however, § 301.6222(b)-3 for an election to be treated as having reported the inconsistency.
# (d) Effective date.
This section is applicable to partnership taxable years beginning on or after October 4, 2001.
For years beginning prior to October 4, 2001, see § 301.6222(a)-1T contained in 26 CFR part 1, revised April 1, 2001.
[T.D. 8965, 66 FR 50545, Oct. 4, 2001]
Source: view the official text
In this part (40 sections)
- 301.6161-1 · Extension of time for paying tax.
- 301.6162-1 · Extension of time for payment of tax on gain attributable…
- 301.6163-1 · Extension of time for payment of estate tax on value of…
- 301.6164-1 · Extension of time for payment of taxes by corporations…
- 301.6165-1 · Bonds where time to pay the tax or deficiency has been…
- 301.6166-1 · Extension of time for payment of estate tax where estate…
- 301.6201-1 · Assessment authority.
- 301.6203-1 · Method of assessment.
- 301.6204-1 · Supplemental assessments.
- 301.6205-1 · Special rules applicable to certain employment taxes.
- 301.6211-1 · Deficiency defined.
- 301.6212-1 · Notice of deficiency.
- 301.6212-2 · Definition of last known address.
- 301.6213-1 · Restrictions applicable to deficiencies; petition to Tax…
- 301.6213-2 · Omission of correct vehicle identification number.
- 301.6215-1 · Assessment of deficiency found by Tax Court.
- 301.6221-1 · Tax treatment determined at partnership level.
- 301.6221(a)-1 · Determination at partnership level.
- 301.6221(b)-1 · Election out for certain partnerships with 100 or fewer…
- 301.6222-1 · Partner's return must be consistent with partnership…
- 301.6222(a)-1 · Consistent treatment of partnership items.
- 301.6222(a)-2 · Application of consistent reporting and notification…
- 301.6222(b)-1 · Notification to the Internal Revenue Service when…
- 301.6222(b)-2 · Effect of notification of inconsistent treatment.
- 301.6222(b)-3 · Partner receiving incorrect schedule.
- 301.6223-1 · Partnership representative.
- 301.6223-2 · Binding effect of actions of the partnership and…
- 301.6223(a)-1 · Notice sent to tax matters partner.
- 301.6223(a)-2 · Withdrawal of notice of the beginning of an…
- 301.6223(b)-1 · Notice group.
- 301.6223(c)-1 · Additional information regarding partners furnished to…
- 301.6223(e)-1 · Effect of Internal Revenue Service's failure to provide…
- 301.6223(e)-2 · Elections if Internal Revenue Service fails to provide…
- 301.6223(f)-1 · Duplicate copy of final partnership administrative…
- 301.6223(g)-1 · Responsibilities of the tax matters partner.
- 301.6223(h)-1 · Responsibilities of pass-thru partner.
- 301.6224(a)-1 · Participation in administrative proceedings.
- 301.6224(b)-1 · Partner may waive rights.
- 301.6224(c)-1 · Tax matters partner may bind nonnotice partners.
- 301.6224(c)-2 · Pass-thru partner binds indirect partners.