Ezel / IRS Rulings / 200936033

Section 267 loss disallowance and the matching rule

Number
200936033
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Losses, Expenses, and Interest With Respect to Transactions Between Related Parties
Topics
Income and deductions
Code sections
§ 267
Ruling dated
May 8, 2009
Publicly released
September 4, 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 addressed a question under section 267 about losses in transactions between related parties. The email stated that the statute appears to disallow or defer only losses from sales or exchanges. It added that the matching rule would apply if the two parties used different methods of accounting, while noting that section 267 experts were being consulted.

Ruling snapshot

  • Question: Which related-party losses are disallowed or deferred under section 267, and when does the matching rule apply?
  • Outcome: Advice given.
  • Key authorities: IRC § 267.

Full text (IRS public release)

ID: CCA-581337-09 Number: 200936033
Release Date: 9/4/2009
Office: ----------------
UILC: 267.00-00

From: -----------
Sent: Friday 5/8/09 1:37 PM
To: -------------------------
Cc: ----------------------------
Subject: Quick Question

The statute seems clear in disallowing or deferring only losses from sales or exchanges. The
"matching rule" would apply if the two parties were on different methods of accounting.

But I am copying the section 267 experts in case I am missing something.

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