CCA 200932053: Different remedies applied to two erroneous-refund cases

Plain-English summary

Chief Counsel advice addressed remedies for two erroneous refunds in a TEFRA partnership context. For the first case, the advice states that the government could bring an erroneous-refund suit within two years of the refund under sections 7405 and 6532(b). For the second case, it states that the assessment could be corrected within the one-year period under section 6229(f), assuming no affected items were subject to deficiency procedures under section 6230(a)(2)(A)(i). The advice notes that settled partnership items are not subject to those deficiency procedures.

Ruling snapshot

• Question: What remedies were available for two erroneous refunds involving TEFRA partnership items?
• Outcome: Advice given
• Key authorities: IRC §§ 7405, 6532(b), 6229(f), and 6230(a)(2)(A)

Full text (IRS public release)

ID: CCA_2009070115063237 Number: 200932053
Release Date: 8/7/2009
Office: --------------
UILC: 6230.01-00

From: -------------------
Sent: Wednesday, July 01, 2009 3:06:33 PM
To: --------------------
Cc: -----------
Subject: RE: Erroneous Refunds in TEFRA ---------

For the first case we can initiate an erroneous refund suit within two years of the erroneous refund under section 7405 and 6532(b).

For the second case we can just correct the assessment within the one year period under section 6229(f) assuming that there are no affected items subject to deficiency procedures under section 6230(a)(2)(A)(i). See I.R.C. 6230(a)(2)(A)(ii)(settled partnership items are not subject to deficiency procedures).