Opinion ID: 2298935
Heading Depth: 1
Heading Rank: 1

Heading: R.C. Section 6224(c)(1).

Text: Once a taxpayer-partner consents, or a settlement agreement is reached by other partners and the Service, each partner is notified that partnership return adjustments cannot be reopened, in the absence of fraud, malfeasance, or misrepresentation of fact. Form 870-PT notifies the taxpayer-partner that: If this part of this agreement form is signed for the Commissioner, the treatment of partnership items and partnership level determinations as to penalties, additions to tax and additional amounts that relate to the adjustments to partnership items under this agreement will not be reopened in the absence of fraud, malfeasance, or misrepresentation of fact. In addition, no claim for an adjustment of partnership items, refund or credit based on any change in the treatment of partnership items or partnership level determinations as to penalties, additions to tax, and additional amounts may be filed or prosecuted. The partnership level determinations, thus, are concluded, and the focus of the audit then shifts to any potential computational adjustments to each partner's returns. When applying the partnership level adjustments to an individual partner's tax liability, the Service makes a computational adjustment, which, essentially, is an arithmetic operation to alter the partner's personal tax liability to conform with adjustments made to partnership items on the partnership returns, and is defined in the Internal Revenue Code as the change in the tax liability of a partner which properly reflects the treatment under this subchapter of a partnership item. All adjustments required to apply the results of a proceeding with respect to a partnership under this subchapter to an indirect partner shall be treated as computational adjustments.