Ezel / IRS Rulings / 200927038

CCA 200927038: Bankruptcy advice addresses partnership adjustment notices and reports

Number
200927038
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Matters Partner
Topics
Procedure, penalties, and administration
Code sections
§ 6231, § 6223
Ruling dated
May 15, 2009
Publicly released
July 2, 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

In an email about tax matters partner bankruptcy, Chief Counsel answered several numbered questions that are not reproduced in the release. The advice recommends converted treatment while still issuing a final partnership administrative adjustment notice to the affected recipients as notice partners. It also addresses updated mailing addresses under section 6223(c)(2). The notices should be the same for everyone, but only the primary taxpayer needs the reports, with a generic report going to the partnership. The missing questions and redactions limit how precisely the advice can be applied to the underlying situation.

Ruling snapshot

  • Question: How should partnership adjustment notices and reports be handled in the bankruptcy situation discussed?
  • Outcome: Advice given on notice-partner treatment, addresses, and report distribution
  • Key authorities: IRC §§ 6223(c)(2), 6231; Triangle Investors v. Commissioner, 95 T.C. 610 (1990)

Full text (IRS public release)

ID: CCA_2009051514030337 Number: 200927038
Office: --------------
Release Date: 7/2/2009

UILC: 6231.07-00

From: -------------------
Sent: Friday, May 15, 2009 2:03:07 PM
To: -------------------
Cc: ------------------------------------
Subject: RE: TMP Bankruptcy question

  1. See Triangle Investors v. Commissioner, 95 T.C. 610 (1990); Western reserve, 95 T.C. 51,
    September Partners, T.C. memo. 1990-33

  2. Treat them as converted but issue an FPAA to them as a notice partner. This procedure was blessed
    on Third Dividend Dardanos, before the 9th Circuit.

  3. Correct.

You can send it to just ------------------------------since we have to addresses updated in accordance with the
regulation under section 6223(c)(2).

  1. This is covered above

  2. Correct

  3. The FPAA's should be the same for everyone. Only the primary taxpayer needs the reports with a
    generic one to the partnership.

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