Ezel / IRS Rulings / 200923041

CCA 200923041: Transaction-reporting penalty was not subject to TEFRA procedures

Number
200923041
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Treatment Determined At Partnership Level
Topics
Procedure, penalties, and administration
Code sections
§ 6221
Ruling dated
March 27, 2009
Publicly released
June 5, 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 considered whether a penalty had to be determined through TEFRA partnership-level procedures. Section 6221 requires partnership-level treatment for penalties that relate to an adjustment to partnership items. The penalty described in the request instead arose from a failure to report a transaction, not from an adjustment to a partnership item. The advice therefore says it did not appear to be subject to TEFRA.

Ruling snapshot

  • Question: Was a penalty for failure to report a transaction subject to TEFRA partnership-level procedures?
  • Outcome: Advice given, the penalty did not appear subject to TEFRA
  • Key authorities: IRC § 6221

Full text (IRS public release)

ID: CCA_2009032715224237 Number: 200923041
Release Date: 6/5/2009
Office: --------------
UILC: 6221.00-00

From: -------------------
Sent: Friday, March 27, 2009 3:22:43 PM
To: --------------
Cc: ---------------------------------------------------------
Subject: RE: Penalty question

Section 6221 requires that penalties that "relate to an adjustment" to partnership items must be
determined at the partnership level. The penalty you refer is based on the failure to report a transaction
and is not based on an adjustment to a partnership item. Thus, it does not appear to be subject to the
TEFRA provisions.

------------------(----------------------) can answer your substantive questions.

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace