Ezel / IRS Rulings / 200928032

CCA 200928032: Proper notice of inconsistent partnership treatment prevents direct assessment

Number
200928032
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Notification
Topics
Procedure, penalties, and administration
Code sections
§ 6222, § 6231
Ruling dated
May 27, 2009
Publicly released
July 10, 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 advised that the IRS could not directly assess a taxpayer who properly notified the agency of inconsistent partnership-item treatment under section 6222(b)(1)(B). Instead, the IRS could convert the taxpayer's partnership items to nonpartnership items and issue a notice of deficiency. Alternatively, it could determine the correct treatment in a TEFRA partnership proceeding.

Ruling snapshot

  • Question: May the IRS directly assess a partner who properly disclosed inconsistent treatment of partnership items?
  • Outcome: Advice given that direct assessment is unavailable after proper notice
  • Key authorities: IRC §§ 6222(b)(1)(B), 6231(b)(2)(A)(i)

Full text (IRS public release)

ID: CCA_2009052711010937 Number: 200928032

Release Date: 7/10/2009

Office: -------------

UILC: 6222.01-00

From: --------------------

Sent: Wednesday, May 27, 2009 11:01:09 AM

To: -------------------

Cc:

Subject: RE: IRC 6222

If the the taxpayer actually notified us that he was filing inconsistently in accordance with section 6222(b)(1)(B), then we cannot directly assess. We would have to either convert the taxpayer's partnership items to nonpartnership items under section 6231(b)(2)(A)(i) and issue a notice of deficiency for the converted items, or determine the correct treatment through a TEFRA partnership proceeding

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