Ezel / IRS Rulings / 200936037

Basis step-down was not legally required for a pre-JOBS Act contribution

Number
200936037
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Section 704(c) Considerations
Topics
Partnerships
Code sections
§ 704(c)
Ruling dated
June 25, 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 whether a basis step-down could be required for a contribution made before the JOBS Act. The advice stated that there was no legal argument to require the step-down because the contribution occurred before the JOBS Act. The short email does not provide additional facts about the transaction.

Ruling snapshot

  • Question: Could a basis step-down be legally required for a pre-JOBS Act contribution?
  • Outcome: Advice given.
  • Key authorities: IRC § 704(c).

Full text (IRS public release)

ID: CCA-625125-09 Number: 200936037
Release Date: 9/4/2009
Office: ----------------
UILC: 704.01-04

From: ---------------------
Sent: Thursday, June 25, 2009 12:51 PM
To: ------------------
Cc: ----
Subject: -----

--------are you available to talk briefly around 3 ET this afternoon? I want to touch base with you quickly on
what you asked regarding ------ - Basically, there is no legal argument to require the basis step-down,
since the contribution occurred pre-JOBS Act.

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace