2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VII - Administrative Provisions, Procedures, Interests, Penalties, and Additions to Taxes (§§ 33001 — 33423) › Chapter 1070 - Provisions Applicable to Partnerships and Members (§§ 33414 — 33423) › § 33423 - Definitions and special rules

(a) For purposes of this chapter, the term “partnership item” means with respect to a partnership, any item required to be taken into account for the partnership’s taxable year under any provision of §§ 30041 et seq. of this title to the extent regulations prescribed by the Secretary provide that, for purposes of this part, such item is more appropriately determined at the partnership level than at the partner level.
(b) Partners bound by actions of partnership, etc.—
(1) Designation of partner.-Each partnership shall designate (in the manner prescribed by the Secretary) a partner (or other person) who shall have the sole authority to act on behalf of such partnership. In any case in which such a designation is not in effect, the Secretary may select any partner as the partner with such authority.
(2) Binding effect.— A partnership and all partners of such partnership shall be bound:
(A) By actions taken under this chapter by the partnership, and
(B) any decision in a proceeding initiated under this subchapter.
(c) Partnerships having principal place of business outside the United States.—
For purposes of §§ 33419 and 33422 of this title, a principal place of business located outside Puerto Rico shall be treated as located in the San Juan, Puerto Rico.
(d) Treatment where partnership ceases to exist.-If a partnership ceases to exist before a partnership adjustment takes effect, such adjustment shall be taken into account by the former partners of such partnership under regulations prescribed by the Secretary.
(e) Partnerships in cases under Title 11 of the United States Code.—
(1) Suspension of period of limitations on making adjustment, assessment, or collection.-The running of any period of limitations provided in this subchapter on making a partnership adjustment (or provided in this part on the assessment or collection of any amount required to be paid under § 33416 of this title) shall, in a case under title 11 of the United States Code, be suspended during the period during which the Secretary is prohibited by reason of such case from making the adjustment (or assessment or collection).
(A) For adjustment or assessment, sixty (60) days thereafter, and
(B) for collection, six (6) months thereafter.
For purposes of this subsection, the filing of a proof of claim, action of demand of payment or any other action in a case under Title 11 of the United States Code shall not be treated as an action prohibited under this subsection.
(2) Suspension of period of limitation for filing for judicial review.— The running of the period specified in § 33419(a) or 33422(b) of this title shall, in a case under title 11 of the United States Code, be suspended during the period during which the partnership is prohibited by reason of such case from filing a petition under § 33419 or 33422 of this title) and for sixty (60) days thereafter.
(f) Regulations.— The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this chapter, including regulations to prevent abuse through manipulation of the provisions of this chapter.
History —Jan. 31, 2011, No. 1, added as § 6100.10 on Dec. 10, 2011, No. 232, § 186; Sept. 19, 2014, No. 159, § 13.