(a) A partnership underreporting income by more than one million dollars ($1,000,000) for any tax year shall be liable for the tax, excluding interest, penalties or additions at the tax rate applicable to the tax year, on the underreported income without regard to the tax liability of the partners for the underreported income. The department shall assess the partnership for the tax on the underreported income. The department shall not assess the partners for the underreported income or the tax thereon; rather, the partnership shall be required to provide an amended statement to each partner as required under section 335(c)(3)¹ of the partner's pro rata share of the underreported income within ninety days of the assessment becoming final. Nothing in this subsection shall relieve the partners of their tax liability on the underreported income.

(a.1) Each partner shall be allowed a credit for such partner's share of the tax assessed against the partnership under subsection (a) and paid by the partnership. The credit shall be allowed for the partner's taxable year in which the underreported income was required to be reported.

(b) Subsection (a) shall apply to the following partnerships:

(c) This section shall not apply to a publicly traded partnership.

(d) Nothing under this section shall require one partner to be liable for the payment of a tax liability of another partner.

(e) Appeals involving a deficiency assessed under this section may only be pursued by the partnership, and a reassessment of tax liability shall be binding on the partners.