CCA addresses an assessment request and an indirect partner's objection

Number

200929011

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Request for Tax Matters Partner

Topics

Procedure, penalties, and administration

Code sections

§ 6227, § 6230, § 6110

Ruling dated

June 22, 2009

Publicly released

July 17, 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.

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 Advice addresses whether an assessment may proceed when an indirect partner objects. It states that the assessment may be made, but that an indirect partner who objects within 60 days would have to be abated under section 6230(b)(2). The memorandum also considers whether a schedule supplied by a flow-through partner would qualify as part of the source partnership's administrative adjustment request under section 6227(c)(3), concluding that it should if supplied with the request and especially if the allocation could be discerned from the partner's original return.

Ruling snapshot

Question: May an assessment proceed, and can a flow-through partner's schedule satisfy the administrative adjustment request requirements?
Outcome: Advice given, the memorandum states that the assessment may proceed subject to the stated objection rule and explains when the schedule should be sufficient.
Key authorities: IRC §§ 6227(c)(3), 6230(b)(2), and 6110(k)(3).

Full text (IRS public release)

ID: CCA_2009062208495437 Number: 200929011
Release Date: 7/17/2009
Office: --------------
UILC: 6227.02-00

From: -------------------
Sent: Monday, June 22, 2009 8:50:01 AM
To: ------------------------
Cc: ----------------------------------
Subject: RE: Assessment AAR Question

You can assess, but if any indirect partner objects within 60 days we would have to abate that partner under section 6230(b)(2).

There is also some doubt as to whether the schedule provided by the flow through partner would be considered part of the AAR of the source partnership meeting the requirements of section 6227(c)(3). If it was provided with the AAR itself, we should be fine, and even more so if the special allocation could have been discerned from that partner's original return and the schedule merely expedited the computation.

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