PROVISIONS RELATING TO STATUTE OF LIMITATIONS.

SEC. 1233. PROVISIONS RELATING TO STATUTE OF LIMITATIONS. (a) Suspension of Statute Where Untimely Petition Filed.—Paragraph (1) of section 6229(d) (relating to suspension where Secretary makes administrative adjustment) is amended by striking all that follows “section 6226” and inserting the following: “(and, if a petition is filed under section 6226 with respect to such administrative adjustment, until the decision of the court becomes final), and”.111 STAT. 1024 (b) Suspension of Statute During Bankruptcy Proceeding.—Section 6229 is amended by adding at the end the following new subsection: “(h) Suspension During Pendency of Bankruptcy Proceeding.—If a petition is filed naming a partner as a debtor in a bankruptcy proceeding under title 11 of the United States Code, the running of the period of limitations provided in this section with respect to such partner shall be suspended— “(1) for the period during which the Secretary is prohibited by reason of such bankruptcy proceeding from making an assessment, and “(2) for 60 days thereafter.”. (c) Tax Matters Partner in Bankruptcy.—Section 6229(b) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: “(2) Special rule with respect to debtors in title ii cases.—Notwithstanding any other law or rule of law, if an agreement is entered into under paragraph (1)(B) and the agreement is signed by a person who would be the tax matters partner but for the fact that, at the time that the agreement is executed, the person is a debtor in a bankruptcy proceeding under title 11 of the United States Code, such agreement shall be binding on all partners in the partnership unless the Secretary has been notified of the bankruptcy proceeding in accordance with regulations prescribed by the Secretary.”. (d) Effective Dates.— (1) Subsections (a) and (b).—The amendments made by subsections (a) and (b) shall apply to partnership taxable years with respect to which the period under section 6229 of the Internal Revenue Code of 1986 for assessing tax has not expired on or before the date of the enactment of this Act. (2) Subsection (c).—The amendment made by subsection (c) shall apply to agreements entered into after the date of the enactment of this Act.