Ezel / IRS Rulings / 200929016

CCA addresses the assessment period after a partnership dissolves

Number
200929016
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Assessment of Partnership Items, Converted to Nonpartnership Items
Topics
Procedure, penalties, and administration
Code sections
§ 6229, § 6110
Ruling dated
June 24, 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.

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 Advice addresses the assessment period for partnership-related taxable income. It states that if a partner is a taxable individual or C corporation and did not file a return, the Service can assess at any time and is not constrained by a one-year minimum period that might otherwise apply. The memorandum also explains that dissolving a partnership does not by itself negate taxable income because dissolution alone is not a loss event.

Ruling snapshot

  • Question: Does a partner's failure to file a return or the partnership's dissolution prevent assessment of taxable income?
  • Outcome: Advice given, the memorandum states that assessment may be made at any time in the stated circumstances and that dissolution alone is not a loss event.
  • Key authorities: IRC § 6229; IRC § 6110(k)(3).

Full text (IRS public release)

ID: CCA_2009062408565137 Number: 200929016
Release Date: 7/17/2009
Office: --------------
UILC: 6229.07-00

From: -------------------
Sent: Wednesday, June 24, 2009 8:56:54 AM
To: -------------------------
Cc: -----------
Subject: RE: 1 year assessment by 6-30-2009

You are correct that If your partner is a taxable individual or C corp and did not file a return, you can assess at any time. You are not constrained by the one year minimum period that might otherwise apply.

I don't know why you think the dissolution of the partnership would negate taxable income from that entity. Dissolution, by itself, is not a loss event.

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