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AMENDED RETURN IS NOT A PARTNER AAR UNDER TEFRA

05 / 27 / 2009

The United States Tax Court has held that in order to qualify as an administrative adjustment request (AAR) filed by a partner in a TEFRA partnership entity, one must use IRS Form 8082 and not simply file an amended individual income tax return.  The taxpayer must file the original Form 8082 with the amended income tax return and file a copy of the form with the IRS Service Center where the partnership files its tax returns.  The Court rejected the taxpayer argument that the mere filing of an amended return (without IRS Form 8082) qualified as a "partner AAR" because of substantial compliance, finding that it did not substantially comply with Section 6227 of the Code for a partner to properly change the treatment of a "partnership item" on the partner's return.  Regulations in 301.6227(d)-1(a) walk through the procedures, as does the instructions for IRS Form 8082.  The taxpayers in the case were not able to prove substantial compliance with these rules and regulations and the instructions.