Attorney case note
The issue
Whether a Form 872-M consent extending the period under I.R.C. § 6235(a)(1) was cut short by the 330-day period in § 6235(a)(3) following issuance of a notice of proposed partnership adjustment.
What the Tax Court held
No. Section 6235(a) establishes alternative limitations periods and permits an adjustment through the latest applicable date. The consent validly extended the § 6235(a)(1) period to May 30, 2025; thus, the March 25, 2025 FPA was timely. The Court denied petitioner’s motion.
Key facts
- Katanga was an LLC treated as a partnership and subject to the BBA centralized partnership audit regime.
- For tax year 2020, Katanga filed Form 1065 on June 10, 2021, and designated R. Brent Evans as partnership representative.
- The parties executed Form 872-M extending the time to make partnership adjustments through May 30, 2025.
- The IRS issued a NOPPA on April 16, 2024, and an FPA on March 25, 2025, disallowing Katanga’s claimed 2020 charitable-contribution deduction.
- Katanga petitioned on June 23, 2025, asserting that the FPA was untimely.
Why this matters
The reported opinion construes § 6235(a)'s “later of” formulation in the BBA regime: a consensual extension under § 6235(a)(1) remains operative notwithstanding an earlier-expiring period calculated under § 6235(a)(3).
Practical takeaway
For BBA examinations, analyze each potentially applicable § 6235(a) period and any § 6235(b) consent; issuance of a NOPPA does not necessarily establish the final deadline for an FPA.
Source
Read the decision or court record ↗
This AI-assisted case summary is informational and is not legal advice. Consult the linked decision for the court’s complete opinion.