BBA partnership definitions

Adjustment year: The year a court decision becomes final, the year an Administrative Adjustment Request (AAR) is filed or the year in which the IRS mails the notice of final partnership adjustment.

Final partnership adjustment: The final determination of tax due upon conclusion of an audit under the new federal partnership audit rules. Please see 20 NYCRR § 159.5 for more information on final determinations.

Impacted partnership: A partnership that was issued a final federal adjustment, made a federal election for alternative payment with the IRS as part of a federal partnership audit, or filed an AAR with the IRS.

Reporting Year: The taxable year in which the partner was furnished a statement by the audited partnership indicating the partner’s distributive share of the audit adjustment.

Reviewed year: The tax year for which the partnership is audited.

Tiered partner: Any partner in an impacted partnership that is a partnership, S corporation, or other pass-through entity for New York tax purposes.