Ezel / IRS Rulings / 200917039

CCA 200917039: Partner-level loss carryforward required an affected-item notice

Number
200917039
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Computational Adjustment
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
March 27, 2009
Publicly released
April 24, 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

The IRS considered whether a net operating loss carryover was a directly assessable computational adjustment. Partnership-level losses generally were directly assessable, but the loss at issue arose only at the partner level. The advice treated the loss and its resulting carryforward as affected items requiring partner-level determinations and an affected-item statutory notice. It concluded that this treatment did not conflict with Cummings.

Ruling snapshot

  • Question: Was the partner's net operating loss carryforward directly assessable, or did it require an affected-item notice?
  • Outcome: Advice given: the partner-level loss and carryforward required an affected-item statutory notice.
  • Key authorities: IRC § 6231; Cummings.

Full text (IRS public release)

ID: CCA_2009032709330837 Number: 200917039
Release Date: 4/24/2009
Office: --------------
UILC: 6231.06-00

From: -------------------
Sent: Friday, March 27, 2009 9:33:13 AM
To: -----------------
Cc: ------------------------------------------------------------------------------ Subject: RE: Is NOL Carryover Computational Adjustment or Not?

NOLS of partnership losses are directly assessable computational adjustments. Here, since the loss occurred only at the partner level it was an affected item requiring partner-level determinations. So both it and any carryforward resulting from this partner-level loss required an affected item stat notice. So there is no conflict with Cummings.

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