Ezel / IRS Rulings / 200930042

CCA 200930042: Unresolved AAR issues require a TEFRA proceeding for a final determination

Number
200930042
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Request for Tax Matters Partner
Topics
Procedure, penalties, and administration
Code sections
§ 754
Ruling dated
June 3, 2009
Publicly released
July 24, 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

This Chief Counsel Advice addresses the choices available when the IRS does not accept an amended administrative request without qualification. It states that the options are to accept the AAR or conduct a TEFRA proceeding. Because the dividend characterization issue was not accepted without qualification and the section 754 depreciation request could not then be accepted, the advice says a TEFRA proceeding would be needed to make a final determination of those amounts.

Ruling snapshot

  • Question: What procedure is required when the IRS cannot accept the AAR's disputed issues as submitted?
  • Outcome: Advice given.
  • Key authorities: IRC § 754; TEFRA partnership proceedings

Full text (IRS public release)

ID: CCA_2009060315044637 Number: 200930042
Release Date: 7/24/2009
Office: --------------
UILC: 6227.02-00

From: -------------------
Sent: Wednesday, June 03, 2009 3:04:49 PM
To: --------------------
Cc: ----------------------------------------------------------------------------- Subject: RE: ------ AAR

Our options are to accept the AAR, or conduct a TEFRA proceeding. It sounds like we are not accepting the dividend characterization issue without qualification and that we cannot accept the depreciation section 754 request currently. Thus, we would need to open a TEFRA proceeding to make a final determination of these amounts.

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