IRS Tried to Adjust Partnership Income Too Late, Tax Court Says

The IRS was wrong when it applied a Treasury Department regulation to change the time limit to issue a final partnership adjustment, the US Tax Court said Tuesday.
The Tax Code requires the IRS to issue a final partnership adjustment 270 days after a taxpayer submits a modification request to adjust income, a statute Judge Ronald L. Buch’s opinion said was “unambiguous” in holdingthe agency’s notice against the Texas real estate partnership was untimely.

Trying to use a Treasury regulation to modify the stated time period “falls outside the boundaries of any rulemaking authority that Congress may have delegated,” Buch ...