Ezel / IRS Rulings / 200931058

CCA 200931058: FPAA is required to adjust partnership-level net contributions

Number
200931058
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Treatment Determined At Partnership Level
Topics
Procedure, penalties, and administration
Code sections
§ 6221
Ruling dated
June 30, 2009
Publicly released
July 31, 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 Service must issue an FPAA for the second year to determine the partnership's net contributions through that year's end. Without a partnership-level adjustment, the government would be bound by the contributions reported on the partnership return when computing a partner's outside basis. The advice also states that there is no statute of limitations on issuing an FPAA, but the adjustment affects an open year of the partner.

Ruling snapshot

  • Question: Must the Service issue an FPAA to adjust partnership-level net contributions before computing a partner's outside basis?
  • Outcome: Advice given
  • Key authorities: IRC § 6221; Roberts v. Commissioner, 94 T.C. 853, 860 (1990)

Full text (IRS public release)

ID: CCA_2009063013345337 Number: 200931058
Release Date: 7/31/2009
Office: -------------
UILC: 6221.00-00

From: --------------------
Sent: Tuesday, June 30, 2009 1:34:54 PM
To: --------------------
Cc: ------------
Subject: RE: Question

The Service has to issue an FPAA for year 2 to determine the net contributions to the partnership through the end of year 2. Without adjusting the net contributions at the partnership level the government will be bound by the contributions as reported on the partnership return for purposes of computing the partner's outside basis. Roberts v. Commissioner, 94 T.C. 853, 860 (1990).

--------------------------------------------------------------------------------------------------------------------There is no statute of limitations on issuing an FPAA. The only limitation is that it affects an open year of the partner.

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