Ezel / IRS Rulings / 200848047

CCA 200848047: Use partner's normal limitations period when item character is uncertain

Number
200848047
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Assessment of Partnership Items
Topics
Procedure, penalties, and administration
Code sections
§ 6229
Ruling dated
July 21, 2008
Publicly released
November 28, 2008
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2008
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that assessment attributable to nonpartnership components had to occur within the partner's normal limitations period. The key partnership case period could apply to any portion attributable to partnership items. Because the allocation between those categories would remain uncertain, best practice was always to issue the statutory notice within the indirect partner's normal period. The notice should reconcile that partner's return with the partnership return and intervening tiers.

Ruling snapshot

  • Question: Which assessment period should the IRS use when K-1 discrepancies may include both partnership and nonpartnership items?
  • Outcome: Advice given. Protect the case by issuing the notice within the indirect partner's normal limitations period.
  • Key authorities: IRC § 6229.

Full text (IRS public release)

ID: CCA-721945-08 Number: 200848047
Office: --------------
Release Date: 11/28/2008

UILC: 6229.06-00

From: -------------------
Sent: Mon 7/21/2008 9:45 AM
To: --------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
--------------
Subject: FW: K-1 Discrepancies

I agree that any assessment attributable to the nonpartnership item components would have to be assessed within the partner's normal statute. To the extent any part of the assessment is attributable to partnership items, we could use the key case statute. ---------------------------------------------------------------- Since we won't know for sure, best practice would be to always issue the stat notice, reconciling the indirect partner return with the partnership return and its tiers, within the indirect partner's normal statute.

Attachment: Draft IRM Provision (Redacted)

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