CCA 200941027: The IRS may partially allow an administrative adjustment request

Number

200941027

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Administrative Adjustments Requests

Topics

Procedure, penalties, and administration

Code sections

§ 6227, § 6228, § 6110

Ruling dated

September 1, 2009

Publicly released

October 9, 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.

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 considers whether the IRS may partially allow an administrative adjustment request. It concludes that section 6227(c)(2)(A)(i) permits the IRS to allow only the credits or refunds arising from the adjustments that are proper, rather than requiring an all-or-nothing decision. It also explains that taxpayers may seek Appeals consideration, and identifies forms that can extend the time for that consideration. If a settlement is reached, the IRS would issue refunds only for the settlement amount.

Ruling snapshot

Question: May the IRS partially allow an administrative adjustment request and allow Appeals consideration?
Outcome: Advice given.
Key authorities: IRC §§ 6227(c)(2)(A)(i), 6228(a)(2), 6110(k)(3).

Full text (IRS public release)

ID: CCA_2009090108291137 Number: 200941027
Release Date: 10/9/2009
Office: ----------
UILC: 6227.00-00

From: -------------------
Sent: Tuesday, September 01, 2009 8:29:15 AM
To: --------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Subject: RE: AAR Disallowance Letter 1831

There is no problem with making a partial allowance of an AAR. Section 6227(c)(2)(A)(i) provides that we may allow "the credits or refunds arising from the requested adjustments." (emphasis supplied) The phrase "arising from" means the refunds that the requesting partner[s]are entitled to out of what was requested. The statute does not say that we must allow the refunds "requested" or none at all. Hence, we have the discretion to allow only what we think are the proper adjustments.

We are also free to allow taxpayers to request appeals consideration. Instead of filing suit under section 6228(a)(2), the TMP can secure a statute extension using Form 9248 to allow Appeals time to consider settlement. A partner-level AAR can use form 9247. If a settlement is reached with Appeals, we would only issue refunds in the settlement amount and litigation would be unnecessary.

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