Tax Treatment of Partnership Items Act of 1982

Tax Treatment of Partnership Items Act of 1982 - Amends the Internal Revenue Code to revise the tax treatment of partnership items. States that such treatment shall be determined at the partnership level.

Requires that an individual partner treat a partnership item the same way the item is treated on the partnership's tax return. Requires a partner to notify the Secretary of the Treasury of any inconsistent treatment of a partnership item. Provides that a failure to notify the Secretary will result in a computational adjustment to make the treatment of partnership items consistent.

Requires the Secretary to notify partners individually of the beginning of an administrative proceeding at the partnership level and of the final administrative adjustment resulting from such proceeding. Provides that such notice requirement shall not apply to partnerships with more than 100 partners and to individual partners with less than one percent interest in the partnership profits. Requires the Secretary to give notice to a "notice group" of partners having an aggregate interest of five percent or more in the partnership. Specifies that if the Secretary fails to give notice to a partner, the partner may elect the final partnership administrative adjustment or may treat items to which the proceeding relates as nonpartnership items.

Requires "tax matters partners" and "pass-thru partners" to keep other partners informed of partnership proceedings.

Grants all partners the right to participate in administrative proceedings. Allows partners to waive their rights and allows the Secretary to waive restrictions.

Provides that settlement agreements between a partner and the Secretary shall bind all partners, with certain exceptions. Gives other partners the right to enter into consistent agreements with the Secretary. Permits the tax matters partner to bind certain other partners unless a partner files a statement that the tax matters partner has no such authority.

Provides that deficiency assessments may only be made after the partnership level proceedings are completed.

Sets forth procedures for judicial review of final partnership administrative adjustments.

Permits a partner to file a request for an administrative adjustment of partnership items. Prescribes procedures for filing such requests. Provides for judicial review where the administrative adjustment request is disallowed by the Secretary.

Limits the period for making deficiency assessments. Provides that such limitation shall not apply in the case of fraudulent partnership returns and substantial omissions of income information.

States that prescribed deficiency proceedings do not apply to computational adjustments. Prescribes procedures for the filing of claims arising out of erroneous computational adjustments by the Secretary.

Sets forth miscellaneous definitions and special rules. Prescribes penalties for failure to file partnership returns, fraud, negligence, and under payments attributable to partnership items.

Requires that all partnerships with U.S. partners file tax returns. Requires any U.S. person with an interest in a foreign partnership to file a return if their interest in the partnership changes.