CCA 200914028: A trust and its beneficiary generally needed separate limitations consents

Number

200914028

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Extension by Agreement

Topics

Procedure, penalties, and administration

Code sections

§ 6229

Ruling dated

September 10, 2008

Publicly released

April 3, 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.

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 limitations-period consents for partnership income passing through a trust to beneficiaries. The trust was taxable on income it retained, while beneficiaries were taxable on distributed income, creating two potential taxpayers who each needed a Form 872-i. A consent from the beneficiary was always required unless that beneficiary was a nontaxable charity. If the IRS had a valid Form 872-P, however, it did not need separate Forms 872-i for partnership income flowing to indirect partners.

Ruling snapshot

Question: Which consents were needed when partnership income flowed through a trust to a beneficiary?
Outcome: Advice given: obtain Forms 872-i from both potential taxpayers, subject to the charitable-beneficiary and valid-Form-872-P exceptions stated in the email.
Key authorities: IRC § 6229; Forms 872-P and 872-i.

Full text (IRS public release)

ID: CCA-310151-09 Number: 200914028
Release Date: 4/3/2009
Office: --------------
UILC: 6229.02-00

From: -------------------
Sent: Wed 9/10/2008 9:29 AM
To: ------------------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Subject: RE: TEFRA

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-------------------------------------------------------------------------------------------------------------- The trust is taxable to the extent it does not distribute income and the beneficiaries are taxable to the extent the income is distributed. Since you have two potential taxpayers, you need two Forms 872-i.

I agree that we would always need a Form 872-i from the beneficiary unless the beneficiary is a non- taxable charity.

If you have a valid Form 872-P, you don't need any Forms 872-i for partnership income flowing to indirect partners. -------------------------------------------------------------------------------------------------------------------------------
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