CCA 200912014: An affected-item notice could determine a partner's outside basis
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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.
Plain-English summary
Chief Counsel addressed how to determine a partner's outside basis after a partnership proceeding. The IRS could issue an affected-item notice of deficiency to the partner for that computation. In determining outside basis, the IRS could consider all prior-year partnership items as reported and all items that the partner had treated inconsistently.
Ruling snapshot
- Question: How could the IRS compute a partner's outside basis after a partnership proceeding?
- Outcome: Advice given: issue an affected-item notice of deficiency and account for prior reported partnership items and the partner's inconsistently treated items.
- Key authorities: Affected-item rules under IRC § 6231.
Full text (IRS public release)
ID: CCA_2009021708571837 Number: 200912014
Release Date: 3/20/2009
Office: --------------
UILC: 6231.05-00
From: -------------------
Sent: Tuesday, February 17, 2009 8:57:23 AM
To: ----------------
Cc: -----------
Subject: RE: Inside-Outside Basis Statute question ---------
Following your partnership proceeding, you can issue an affected item notice of deficiency to the partners
to compute his outside basis. All prior year partnership items as reported, and all inconsistently treated
items of the partner can be taken into account in computing his outside basis.
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