CCA 200922030: Earlier TEFRA elections could predate Form 8893

Plain-English summary

Chief Counsel discussed reasonable reliance on a partnership return under section 6231(g)(1) and the possible existence of an earlier TEFRA election. For years before a redacted cutoff, an election could have been filed separately from the return and remained effective for later years under examination. Form 8893 did not exist until December 2004, so a claim that that specific form had been filed for an earlier year would be incorrect. For prior years, the email stated that a statement or letter signed by both partners could constitute a valid election. Several portions of the advice were redacted.

Ruling snapshot

• Question: Could an earlier TEFRA election remain effective even though Form 8893 did not yet exist?
• Outcome: Advice given: an earlier signed statement or letter could be a valid continuing election; Form 8893 itself began in December 2004.
• Key authorities: IRC § 6231(g)(1); historical TEFRA election procedures described in the email.

Full text (IRS public release)

ID: CCA_2009041611312337 Number: 200922030
Release Date: 5/29/2009
Office: --------------
UILC: 6231.00-00

From: -------------------
Sent: Thursday, April 16, 2009 11:31:26 AM
To: ---------------
Cc: ----------------------------------------------------
Subject: RE: Question re: TEFRA Election

I agree.

--------------------------------------------------------------------------section 6231(g)(1) which provides that TEFRA applies if, "on the basis of the partnership return we "reasonably" determined that TEFRA applies. ---------
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Also, for years before ------- an election could be filed separately rather than with the return and would make TEFRA apply for all future years including the years currently under examination.

The Form 8893 election did not come into existence until December 2004. So if they referenced this form as having been filed for a prior year, that would obviously be incorrect. For prior years a statement or letter signed by both partners would have constituted a valid election ------------------------------------------------
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