Ezel / IRS Rulings / 200913028

CCA 200913028: A partnership's reportable-transaction penalty fell outside TEFRA

Number
200913028
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Penalty
Topics
Procedure, penalties, and administration
Code sections
§ 6221, § 6707A
Ruling dated
July 15, 2008
Publicly released
March 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 the penalty for a partnership's failure to disclose reportable-transaction information. The advice treats TEFRA and non-TEFRA partnerships alike when imposing that penalty on the partnership as a state-law entity. TEFRA applies only to partnership items under subtitle A and to penalties related to adjustments of those items. The disclosure penalty therefore should be imposed outside the TEFRA procedures.

Ruling snapshot

  • Question: Did TEFRA govern a penalty imposed on a partnership for failing to report reportable-transaction information?
  • Outcome: Advice given: the penalty was not subject to TEFRA, regardless of the partnership's TEFRA status.
  • Key authorities: IRC §§ 6221, 6707A.

Full text (IRS public release)

ID: CCA-715141-08 Number: 200913028
Release Date: 3/27/2009
Office: --------------
UILC: 6707.02-02

From: -------------------
Sent: Tue 7/15/2008 1:41 PM
To: ---------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
Subject: RE: 6707A 30 Day Letters to Partnerships

There is no difference between a TEFRA partnership and a non-TEFRA partnership for purposes of imposing the penalty for failure to report reportable transaction information against the partnership as a state law entity. This penalty should not be subject to the TEFRA procedures.

The TEFRA procedures apply only to partnership items (items under subtitle A of the Code), and penalties that "relate to an adjustment" of such partnership items. I.R.C. 6221-------------------------------------
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