(a)

In general

A partner shall, on the partner's return, treat a partnership item in a manner which is consistent with the treatment of such partnership item on the partnership return.

(b)

Notification of inconsistent treatment

(1)

In general

In the case of any partnership item, if -

(A)

(i)

the partnership has filed a return but the partner's treatment on his return is (or may be) inconsistent with the treatment of the item on the partnership return, or

(ii)

the partnership has not filed a return, and

(B)

the partner files with the Secretary a statement identifying the inconsistency,

subsection (a) shall not apply to such item.

(2)

Partner receiving incorrect information

A partner shall be treated as having complied with subparagraph (B) of paragraph (1) with respect to a partnership item if the partner -

(A)

demonstrates to the satisfaction of the Secretary that the treatment of the partnership item on the partner's return is consistent with the treatment of the item on the schedule furnished to the partner by the partnership, and

(B)

elects to have this paragraph apply with respect to that item.

(c)

Effect of failure to notify

In any case -

(1)

described in paragraph (1)(A)(i) of subsection (b), and

(2)

in which the partner does not comply with paragraph (1)(B) of subsection (b),

section 6225 shall not apply to any part of a deficiency attributable to any computational adjustment required to make the treatment of the items by such partner consistent with the treatment of the items on the partnership return.

(d)

Addition to tax for failure to comply with section

For addition to tax in the case of a partner's disregard of requirements of this section, see part II of subchapter A of chapter 68.