Ezel / IRS Rulings / 200942045

CCA 200942045: Notice duties for direct and indirect partnership partners

Number
200942045
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Information for Secretary's Notices
Topics
Procedure, penalties, and administration
Code sections
§ 6223, § 6110
Ruling dated
August 10, 2009
Publicly released
October 16, 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 states that IRC § 6223(c)(1) requires notices to be sent to partners identified on the source partnership return. It says the IRS does not conduct separate tier partnership proceedings for items originating at that level and generally does not send notices directly to indirect partners unless they have been identified under IRC § 6223(c)(3) and the applicable regulations. Counsel adds that the IRS may sometimes link an indirect partner for policy reasons when all adjustments reach that partner, to ensure that the affected taxpayer receives notice.

Ruling snapshot

  • Question: When must the IRS send partnership notices to direct or indirect partners?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6223(c)(1) and 6223(c)(3); Treas. Reg. § 301.6223(c)-1(a) and (c); Sente Investment Club v. Commissioner, 95 T.C. 243 (1990)

Full text (IRS public release)

ID: CCA_2009081009055437 Number: 200942045
Release Date: 10/16/2009
Office: --------------
UILC: 6223.02-00

From: -------------------
Sent: Monday, August 10, 2009 9:06:02 AM
To: ---------------------
Cc: --------------------------------------------------------
Subject: RE: FPAA

------- is correct. Section 6223(c)(1) requires only that we send notices to the partners identified on the source partnership return. We do not conduct separate tier partnership proceedings for items that originate at this level. See Sente Investment Club v. Commissioner, 95 T.C. 243 (1990). We do not send notices directly to indirect partners unless, under section 6223(c)(3) and Treas. Reg. 301.6223(c)-1(a) and (c) they have been identified to the Service in accordance with the regulations.

Occasionally, for policy reasons, we may link an indirect partner ourselves if all the adjustments end up in the hands of that indirect partner, just to make sure that the only taxpayer actually affected gets the notice.

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