PROCEDURALLY TAXING tax notes federal
by Jenni Black Jenni Black is a managing director in Citrin Cooperman’s national tax office and the practice leader of the tax procedure and controversy practice. Jenni is also a contributing author for Procedurally Taxing.
differences between BBA and TEFRA. Part 2 of this article discusses the structure of TEFRA and how it compares with BBA as well as the practicalities that exist under TEFRA that are not necessarily present in BBA. Let’s add another brick to this wall. Structure of TEFRA and Exceptions
On October 21, 2025, the Tax Court issued a full T.C. opinion in North Wall Holdings LLC, 165 T.C. No. 9 (North Wall). The North Wall case involved a late petition filed under the partnership audit procedures enacted by the Tax Equity and Fiscal Responsibility Act of 1982. In its opinion, the Tax Court held that the petition period under TEFRA (section 6226) is jurisdictional and, even if it wasn’t jurisdictional, equitable tolling is not available for petitions filed under section 6226. This two-part article examines the court’s analysis in North Wall to see if it sheds any light on whether section 6234(a) (as enacted by the Bipartisan Budget Act of 2015) is jurisdictional and/or subject to equitable tolling. Part 1 of this article discussed the history of TEFRA and some of the major structural
In determining that section 6226 is jurisdictional and not subject to equitable tolling, the Tax Court held that the overall structure of TEFRA suggested it had to be jurisdictional. When looking at the overall structure of TEFRA to aid in is determination of whether section 6226 is jurisdictional and subject to equitable tolling, the court focused on two features — the complexity of the filing provisions and the availability of relief built into TEFRA by Congress. In North Wall, the Tax Court held that the detailed, highly technical limitations on the filing of a petition under TEFRA could not be, “linguistically speaking,” easily read to contain implicit exceptions. As mentioned in Part 1, TEFRA has a bifurcated petition period. Before anyone can file a petition under TEFRA, the IRS must have issued a valid notice of final partnership administrative adjustments (FPAA). That’s nothing new; all ways into the Tax Court require some kind of “ticket” (statutory notice of deficiency, FPAA, notice of final partnership adjustment (FPA), notice of determination following a collection due process hearing, etc.) because the Tax Court is a court of limited jurisdiction. After the issuance of the FPAA, who you are dictates when (and if) you can file a petition. The court notes that, after the 90 days, it lacks jurisdiction over a petition filed by the tax matters partner (TMP) unless the TMP is also a notice partner (and they file in the remaining 60 days). North Wall, 165 T.C. No. 9, at 13. This is
TAX NOTES FEDERAL, VOLUME 189, DECEMBER 1, 2025
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In this post, Black argues that the Tax Court’s reasoning in North Wall Holdings as to why the filing deadline under the Tax Equity and Fiscal Responsibility Act of 1982 is jurisdictional and not subject to equitable tolling isn’t likely to apply to the filing deadline under the Bipartisan Budget Act of 2015 because of the differences between the two regimes. This post reflects the author’s personal views and not necessarily those of Citrin Cooperman.
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Walled Off: Does North Wall Holdings Impact BBA? Part 2