PROVISIONS RELATING TO COURT JURISDICTION, ETC.

SEC. 1239. PROVISIONS RELATING TO COURT JURISDICTION, ETC. (a) Tax Court Jurisdiction To Enjoin Premature Assessments of Deficiencies Attributable to Partnership Items.—Subsection (b) of section 6225 is amended by striking “the proper court.” and inserting “the proper court, including the Tax Court. The Tax Court shall have no jurisdiction to enjoin any action or proceeding under this subsection unless a timely petition for a readjustment of the partnership items for the taxable year has been filed and then only in respect of the adjustments that are the subject of such petition.”. (b) Jurisdiction To Consider Statute of Limitations With Respect to Partners.—Paragraph (1) of section 6226(d) is amended by adding at the end the following new sentence:111 STAT. 1028 “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(a) 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),”. (f) Effective Date.—The amendments made by this section shall apply to partnership taxable years ending after the date of the enactment of this Act.