Ezel / IRS Rulings / 200848066

CCA 200848066: Form 872-P preserves distribution and affected-item adjustments

Number
200848066
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Extension by Agreement
Topics
Procedure, penalties, and administration
Code sections
§ 6229
Ruling dated
August 18, 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 Form 872-P for the partnership would keep the limitations period open for taxing a distribution to a partner and for the partner's balance-sheet treatment. The partnership proceeding would determine the partner's share of liabilities, contributions, distributions, and any carryover basis in distributed property. After that proceeding ended, the IRS would need to issue an affected-item partnership examination adjustment to the partner within the one-year period.

Ruling snapshot

  • Question: What does the partnership-level extension preserve, and what follow-up action is required against the partner?
  • Outcome: Advice given. The extension covers the identified partnership and distribution items, followed by an affected-item adjustment within one year.
  • Key authorities: IRC § 6229.

Full text (IRS public release)

1

ID: CCA-818110-08 Number: 200848066
Office: --------------
Release Date: 11/28/2008

UILC: 6229.02-00

From: -------------------
Sent: Mon 8/18/2008 11:04 AM
To: ----------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
-------------------------
Subject: RE: TEFRA Question - please see if you agree with my analysis

The Form 872-P for A will keep the statute open for the taxability of any distribution to C and C's treatment of such items on its balance sheet. The A proceeding will determine C's share of liabilities, contributions to A and A distributions to C, and any carryover basis in distributed property. We would need to issue an affected item PEA to C after the conclusion of the A proceeding (within the one year period).

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