CFC/PFIC Look-Through Election

§ 6241. Definitions and special rules For purposes of this subchapter—(1) PartnershipThe term “partnership” means any partnership required to file a return under section 6031(a). (2) Partnership adjustment(A) In generalThe term “partnership adjustment” means any adjustment to a partnership-related item. (B) Partnership-related itemThe term “partnership-related item” means—(i) any item or amount with respect to the partnership (without regard to whether or not such item or amount appears on the partnership’s return and including an imputed underpayment and any item or amount relating to any transaction with, basis in, or liability of, the partnership) which is relevant (determined without regard to this subchapter) in determining the tax liability of any person under chapter 1, and (ii) any partner’s distributive share of any item or amount described in clause (i). (3) Return due dateThe term “return due date” means, with respect to the taxable year, the date prescribed for filing the partnership return for such taxable year (determined without regard to extensions). (4) Payments nondeductibleNo deduction shall be allowed under subtitle A for any payment required to be made by a partnership under this subchapter. (5) Partnerships having principal place of business outside United StatesFor purposes of section 6234, a principal place of business located outside the United States shall be treated as located in the District of Columbia. (6) Partnerships in cases under title 11 of United States Code(A) Suspension of period of limitations on making adjustment, assessment, or collectionThe running of any period of limitations provided in this subchapter on making a partnership adjustment (or provided by section 6501 or 6502 on the assessment or collection of any imputed underpayment determined under this subchapter) shall, in a case under title 11 of the United States Code, be suspended during the period during which the Secretary is prohibited by reason of such case from making the adjustment (or assessment or collection) and—(i) for adjustment or assessment, 60 days thereafter, and (ii) for collection, 6 months thereafter. A rule similar to the rule of section 6213(f)(2) shall apply for purposes of section 6232(b). (B) Suspension of period of limitation for filing for judicial reviewThe running of the period specified in section 6234 shall, in a case under title 11 of the United States Code, be suspended during the period during which the partnership is prohibited by reason of such case from filing a petition under section 6234 and for 60 days thereafter. (7) Treatment where partnership ceases to existIf a partnership ceases to exist before a partnership adjustment under this subchapter takes effect, such adjustment shall be taken into account by the former partners of such partnership under regulations prescribed by the Secretary.