Ezel / IRS Rulings / 200909052

CCA 200909052: Tax matters partner can bind small-interest partners in large partnerships

Number
200909052
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Binds All Partners
Topics
Procedure, penalties, and administration
Code sections
§ 6224
Ruling dated
December 11, 2008
Publicly released
February 27, 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 addressed who may bind partners on an issue in a multi-tier TEFRA partnership. Ordinarily, the email says, partners can bind only themselves. If the partnership has more than 100 partners, section 6224(c)(3) allows the tax matters partner to bind partners holding interests of less than one percent.

Ruling snapshot

  • Question: Who may bind partners in the partnership proceeding described in the email?
  • Outcome: Advice given: generally only the partners themselves, except that a tax matters partner may bind small-interest partners in a partnership with more than 100 partners.
  • Key authorities: IRC § 6224(c)(3).

Full text (IRS public release)

ID: CCA_2008121109543037 Number: 200909052
Release Date: 2/27/2009
Office: --------------
UILC: 6224.01-03

From: -------------------
Sent: Thursday, December 11, 2008 9:54:32 AM
To: -------------------
Cc: -----------------------------------------------
Subject: RE: PFA on multi tier TEFRA partnership

Nobody has the power to bind the partners on this issue (except themselves) unless the partnership has
more than 100 partners. In that circumstance the tax matters partner can bind partners with less than a 1
percent interest. I.R.C. 6224(c)(3).

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