Ezel / IRS Rulings / 200911025

CCA 200911025: TEFRA settlement forms depend on the year, partner, and unresolved items

Number
200911025
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Settlement Agreement
Topics
Procedure, penalties, and administration
Code sections
§ 6224, § 6229
Ruling dated
February 5, 2009
Publicly released
March 13, 2009
Source
View Official PDF

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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 advised using a separate Form 870-PT for each of four years, with the consolidated parent signing for two years and both the parent and subsidiary signing for the other two. Years generally should not be combined because partner identities may change, although they could be combined if the partners remained the same. The proper signer for a partnership partner depends on its form: a general partner for a non-TEFRA partnership, its tax matters partner for a TEFRA partnership, or its state-law manager for an LLC. If other partnership items remain disputed, the agreement should be marked as partial and include language that section 6229(f)(2) applies.

Ruling snapshot

  • Question: How should Forms 870-PT be organized, signed, and labeled for the TEFRA settlements?
  • Outcome: Advice given on separate-year forms, authorized signers, and partial-agreement language.
  • Key authorities: IRC §§ 6224 and 6229(f)(2); Treas. Reg. § 301.6224(c)-2(b)(2).

Full text (IRS public release)

ID: CCA_2009020512070537 Number: 200911025
Release Date: 3/13/2009
Office: --------------
UILC: 6224.01-01

From: -------------------
Sent: Thursday, February 05, 2009 12:07:06 PM
To: ----------------------
Cc: ----------------------------------
Subject: RE: TEFRA Questions

  1. You should have four Forms 870-PT, one for each year. The consolidated parent should sign by itself
    for years 1 and 2. Both the sub and the parent should sign for years 3 and 4. Generally we should not combine years since the Form 870-PT is a computer generated form issued to all partners and the identity of partners may change from one year to the next. If the identity of partners does not change, you could combine them.

  2. Treas. Reg. 301.6224(c)-2(b)(2) provides that the general partner of a non-TEFRA partnership that is
    a partner in a TEFRA partnership may sign the Form 870-PT. If the partner is a TEFRA partnership, its TMP signs. If the partner is an LLC, it manager under state law should sign.

  3. The agreement should be stamped "Partial Agreement" if there are other partnership items remaining
    in dispute. In addition, language should be added stating that this is a partial agreement and that section 6229(f)(2) applies. Standard language to this effect appears in the Appeals section of the IRM

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