CCA 200920038: Partnership adjustment claims would expire two years after filing if the IRS did nothing

Plain-English summary

Chief Counsel responded to an unclear question about whether the IRS should “pick up” a partnership return involving claims that might qualify as administrative adjustment requests under section 6227. Counsel explained what would happen if the IRS took no action. The claims would expire two years after they were filed. The email tied that result to the expiration of the refund period under section 6230(d)(2) and the two-year period for petitioning on an AAR under section 6228. The remaining facts and part of the response were redacted.

Ruling snapshot

• Question: What would happen to the partnership claims if the IRS took no action on them?
• Outcome: Advice given: the claims would expire two years after filing even if they were valid administrative adjustment requests.
• Key authorities: IRC §§ 6227, 6228(a)(2)(A)(ii), 6228(b)(2)(B)(ii), 6230(d)(2).

Full text (IRS public release)

ID: CCA_2009040214143337 Number: 200920038
Release Date: 5/15/2009
Office: --------------
UILC: 6227.00-00

From: -------------------
Sent: Thursday, April 02, 2009 2:14:36 PM
To: -------------------------
Cc: ---------------------------------
Subject: RE: AAR - potential ------------

I am not sure what you mean by "pick up" the partnership return. If you simply do nothing, the claims will
expire two years after they were filed even if they might be considered valid AAR's under section 6227.
See I.R.C. 6230(d)(2)(refund statute expires with expiration of period petitioning AAR) and
6228(a)(2)(A)(ii) and (b)(2)(B)(ii)(2 year statute for petitioning an AAR). ---------------------------------------------
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