Ezel / IRS Rulings / 200908034

CCA 200908034: No FPAA was needed when no partner could be affected

Number
200908034
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Notice to Partners of Proceedings
Topics
Procedure, penalties, and administration
Code sections
§ 6223
Ruling dated
November 13, 2008
Publicly released
February 20, 2009
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 2009, 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 2009
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 considered whether the IRS had to issue a final partnership administrative adjustment in a TEFRA proceeding. All partners except one had signed settlement agreements that converted their partnership items into nonpartnership items. The advice said no FPAA was legally required if the proposed adjustment would have no present or future effect on the only remaining partner. In those circumstances, issuing one would waste time and resources.

Ruling snapshot

  • Question: Was an FPAA required when settled partners had left the proceeding and the adjustment could not affect the sole remaining partner?
  • Outcome: Advice given: no, there was no legal need to issue an FPAA on those assumptions.
  • Key authorities: IRC § 6223 and the TEFRA notice and settlement rules.

Full text (IRS public release)

ID: CCA_2008111310205637 Number: 200908034
Release Date: 2/20/2009
Office: -------------
UILC: 6223.00-00

From: --------------------
Sent: Thursday, November 13, 2008 10:20:58 AM
To: -----------------------------------------
Cc: ------------------------------------
Subject: RE: TEFRA FPAA needs review

Legally there is no requirement that we do anything. If the proposed adjustment has no present or future effect on the sole remaining partner, then there is no need to issue the FPAA. This assumes that all other partners have entered into settlement agreements which convert their partnership item to nonpartnership items removing them from this partnership proceeding.

It seems like a waste of time and resources to issue an FPAA under these circumstances.

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