(a)

General rule

This subchapter shall only apply to electing large partnerships and partners in such partnerships.

(b)

Coordination with other partnership audit procedures

(1)

In general

Subchapter C of this chapter shall not apply to any electing large partnership other than in its capacity as a partner in another partnership which is not an electing large partnership.

(2)

Treatment where partner in other partnership

If an electing large partnership is a partner in another partnership which is not an electing large partnership -

(A)

subchapter C of this chapter shall apply to items of such electing large partnership which are partnership items with respect to such other partnership, but

(B)

any adjustment under such subchapter C shall be taken into account in the manner provided by section 6242.