---
kind: "section"
citation: "26 U.S.C. § 6226"
title: "26"
title_heading: "Internal Revenue Code"
number: "6226"
heading: "Alternative to payment of imputed underpayment by partnership"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6226"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 63 — Assessment"
  - "Subchapter C — Treatment of Partnerships"
  - "Part II — Partnership Adjustments"
---

# §6226. Alternative to payment of imputed underpayment by partnership

- (a) **In general—** If the [partnership](/usc/26/7701.md?p=a-2)—
  - (1) not later than 45 days after the date of the notice of final [partnership](/usc/26/7701.md?p=a-2) adjustment, elects the application of this section with respect to an imputed [underpayment](/usc/26/6664.md?p=a), and
  - (2) at such time and in such manner as the [Secretary](/usc/26/7701.md?p=a-11-B) may provide, furnishes to each [partner](/usc/26/7701.md?p=a-2) of the [partnership](/usc/26/7701.md?p=a-2) for the reviewed year and to the [Secretary](/usc/26/7701.md?p=a-11-B) a statement of the [partner](/usc/26/7701.md?p=a-2)’s share of any adjustment to a [partnership](/usc/26/7701.md?p=a-2)-[related](/usc/26/7701.md?p=a-51-I-vi) item (as determined in the notice of final [partnership](/usc/26/7701.md?p=a-2) adjustment),

  [section 6225](/usc/26/6225.md) shall not apply with respect to such [underpayment](/usc/26/6664.md?p=a) (and no assessment of tax, [levy](/usc/26/7701.md?p=a-21), or proceeding in any court for the collection of such [underpayment](/usc/26/6664.md?p=a) shall be made against such [partnership](/usc/26/7701.md?p=a-2)) and each such [partner](/usc/26/7701.md?p=a-2) shall take such adjustment into account as provided in [subsection (b)](#b). The election under [paragraph (1)](#a-1) shall be made in such manner as the [Secretary](/usc/26/7701.md?p=a-11-B) may provide and, once made, shall be revocable only with the consent of the [Secretary](/usc/26/7701.md?p=a-11-B).

- (b) **Adjustments taken into account by partner—**
  - (1) **Tax imposed in year of statement—** Except as provided in [paragraph (4)](#b-4), each [partner](/usc/26/7701.md?p=a-2)’s tax imposed by [chapter 1](/usc/26/chstA/ch1.md) for the [taxable year](/usc/26/7701.md?p=a-23) which [includes](/usc/26/7701.md?p=c) the date the statement was furnished under [subsection (a)](#a) shall be adjusted by the aggregate of the correction amounts determined under [paragraph (2)](#b-2) for the [taxable years](/usc/26/7701.md?p=a-23) referred to therein.
  - (2) **Correction amounts—** The correction amounts determined under this paragraph are—
    - (A) in the case of the [taxable year](/usc/26/7701.md?p=a-23) of the [partner](/usc/26/7701.md?p=a-2) which [includes](/usc/26/7701.md?p=c) the end of the reviewed year, the amount by which the tax imposed under [chapter 1](/usc/26/chstA/ch1.md) would increase or decrease if the [partner](/usc/26/7701.md?p=a-2)’s share of the adjustments described in [subsection (a)](#a) were taken into account for such [taxable year](/usc/26/7701.md?p=a-23), and
    - (B) in the case of any [taxable year](/usc/26/7701.md?p=a-23) after the [taxable year](/usc/26/7701.md?p=a-23) referred to in [subparagraph (A)](#b-2-A) and before the [taxable year](/usc/26/7701.md?p=a-23) referred to in [paragraph (1)](#b-1), the amount by which the tax imposed under [chapter 1](/usc/26/chstA/ch1.md) would increase or decrease by reason of the adjustment to tax attributes under [paragraph (3)](#b-3).
  - (3) **Adjustment of tax attributes—** Any tax attribute which would have been affected if the adjustments described in [subsection (a)](#a) were taken into account for the [taxable year](/usc/26/7701.md?p=a-23) referred to in [paragraph (2)(A)](#b-2-A) shall—
    - (A) in the case of any [taxable year](/usc/26/7701.md?p=a-23) referred to in [paragraph (2)(B)](#b-2-B), be appropriately adjusted for purposes of applying such paragraph, and
    - (B) in the case of any subsequent [taxable year](/usc/26/7701.md?p=a-23), be appropriately adjusted.
  - (4) **Treatment of partnerships and S corporations in tiered structures—**
    - (A) **In general—** If a [partner](/usc/26/7701.md?p=a-2) which receives a statement under [subsection (a)(2)](#a-2) is a [partnership](/usc/26/7701.md?p=a-2) or an S [corporation](/usc/26/7701.md?p=a-3), such [partner](/usc/26/7701.md?p=a-2) shall, with respect to the [partner](/usc/26/7701.md?p=a-2)’s share of the adjustment—
      - (i) file with the [Secretary](/usc/26/7701.md?p=a-11-B) a [partnership](/usc/26/7701.md?p=a-2) adjustment tracking report which [includes](/usc/26/7701.md?p=c) such information as the [Secretary](/usc/26/7701.md?p=a-11-B) may require, and
      - (ii)
        - (I) furnish statements under rules similar to the rules of [subsection (a)(2)](#a-2), or
        - (II) if no such statements are furnished, compute and pay an imputed [underpayment](/usc/26/6664.md?p=a) under rules similar to the rules of [section 6225](/usc/26/6225.md) (other than paragraphs [(2)](#c-2), (7), and (9) of subsection (c) thereof).
    - (B) **Due date—** For purposes of [subparagraph (A)](#b-4-A), with respect to a [partner](/usc/26/7701.md?p=a-2)’s share of the adjustment, the [partnership](/usc/26/7701.md?p=a-2) adjustment tracking report shall be filed, and the imputed [underpayment](/usc/26/6664.md?p=a) shall be paid or statements shall be furnished, not later than the due date for the return for the [adjustment year](/usc/26/7702.md?p=f-11-D) of the audited [partnership](/usc/26/7701.md?p=a-2).
    - (C) **Partnership payment of tax if elected out of subchapter—** In the case of a [partnership](/usc/26/7701.md?p=a-2) which has elected the application of [section 6221(b)](/usc/26/6221.md?p=b) with respect to the [taxable year](/usc/26/7701.md?p=a-23) of the [partnership](/usc/26/7701.md?p=a-2) which [includes](/usc/26/7701.md?p=c) the end of the reviewed year of the audited [partnership](/usc/26/7701.md?p=a-2), this paragraph shall apply notwithstanding such election.
    - (D) **Audited partnership—** For purposes of this paragraph, the term “audited [partnership](/usc/26/7701.md?p=a-2)” means, with respect to any [partner](/usc/26/7701.md?p=a-2) described in [subparagraph (A)](#b-4-A), the [partnership](/usc/26/7701.md?p=a-2) in the chain of ownership originally electing the application of this section.
    - (E) **Treatment of trusts—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall prescribe such rules as may be necessary with respect to trusts which receive a statement under [subsection (a)(2)](#a-2).
- (c) **Penalties and interest—**
  - (1) **Penalties—** Notwithstanding subsections [(a)](#a) and [(b)](#b), any penalties, additions to tax, or additional amount shall be determined as provided under [section 6221](/usc/26/6221.md) and the [partners](/usc/26/7701.md?p=a-2) of the [partnership](/usc/26/7701.md?p=a-2) for the reviewed year shall be liable for any such penalty, addition to tax, or additional amount.
  - (2) **Interest—** In the case of an imputed [underpayment](/usc/26/6664.md?p=a) with respect to which the application of this section is elected, or which is described in [subsection (b)(4)(A)(ii)(I)](#b-4-A-ii-I), interest shall be determined—
    - (A) at the [partner](/usc/26/7701.md?p=a-2) level,
    - (B) from the due date of the return for the [taxable year](/usc/26/7701.md?p=a-23) to which the increase is attributable (determined by taking into account any increases attributable to a change in tax attributes for a [taxable year](/usc/26/7701.md?p=a-23) under [subsection (b)(2)](#b-2)), and
    - (C) at the [underpayment](/usc/26/6664.md?p=a) rate under [section 6621(a)(2)](/usc/26/6621.md?p=a-2), determined by substituting “5 percentage points” for “3 percentage points” in [subparagraph (B)](#c-2-B) thereof.
- (d) **Judicial review—** For the time period within which a [partnership](/usc/26/7701.md?p=a-2) may file a petition for a readjustment, see [section 6234(a)](/usc/26/6234.md?p=a).

## Source credit

(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 630; amended Pub. L. 114–113, div. Q, title IV, § 411(b)(1), Dec. 18, 2015, 129 Stat. 3122; Pub. L. 115–141, div. U, title II, §§ 201(c)(4), 204, 206(d), (e), Mar. 23, 2018, 132 Stat. 1173, 1176, 1178.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 6226, added Pub. L. 97–248, title IV, § 402(a), Sept. 3, 1982, 96 Stat. 653; amended Pub. L. 97–448, title III, § 306(c)(1)(A), Jan. 12, 1983, 96 Stat. 2406; Pub. L. 102–572, title IX, § 902(b)(2), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 105–34, title XII, §§ 1238(b)(1), 1239(b), 1240(a), Aug. 5, 1997, 111 Stat. 1026–1028, related to judicial review of final partnership administrative adjustments, prior to repeal by Pub. L. 114–74, title XI, § 1101(a), Nov. 2, 2015, 129 Stat. 625.

### Amendments

2018—Subsec. (a). Pub. L. 115–141, § 206(d), inserted “(and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership)” after “section 6225 shall not apply with respect to such underpayment” in concluding provisions.

Subsec. (a)(2). Pub. L. 115–141, § 201(c)(4), substituted “any adjustment to a partnership-related item” for “any adjustment to income, gain, loss, deduction, or credit”.

Subsec. (b)(1). Pub. L. 115–141, § 206(e)(2), substituted “correction amounts” for “adjustment amounts”.

Pub. L. 115–141, § 206(e)(1), substituted “adjusted” for “increased”.

Pub. L. 115–141, § 204(b)(1), substituted “Except as provided in paragraph (4), each partner’s” for “Each partner’s”.

Subsec. (b)(2). Pub. L. 115–141, § 206(e)(5), substituted “Correction amounts” for “Adjustment amounts” in heading.

Pub. L. 115–141, § 206(e)(3), substituted “increase or decrease” for “increase” in subpars. (A) and (B).

Pub. L. 115–141, § 206(e)(2), substituted “correction amounts” for “adjustment amounts” in introductory provisions.

Subsec. (b)(2)(A). Pub. L. 115–141, § 206(e)(4), substituted “and” for “plus” at end.

Subsec. (b)(4). Pub. L. 115–141, § 204(a), added par. (4).

Subsec. (c)(2). Pub. L. 115–141, § 204(b)(2), inserted “or which is described in subsection (b)(4)(A)(ii)(I),” after “is elected,” in introductory provisions.

2015—Subsec. (d). Pub. L. 114–113 added subsec. (d).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–141 effective as if included in section 1101 of Pub. L. 114–74, see section 207 of Pub. L. 115–141, set out as a note under section 6031 of this title.

### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–113 effective as if included in section 1101 of Pub. L. 114–74, see section 411(e) of Pub. L. 114–113, set out as a note under section 6031 of this title.

### Effective Date

Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of Pub. L. 114–74, set out as a note under section 6221 of this title.