Ezel / IRS Rulings / 200944028

CCA 200944028: An invalid notice may leave a computational adjustment time-barred

Number
200944028
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Effect of Failure to Notify
Topics
Procedure, penalties, and administration
Code sections
§ 6222, § 6230, § 6503
Ruling dated
August 21, 2009
Publicly released
October 30, 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 warns that a statutory notice does not suspend the period for assessing an inconsistently reported partnership item unless partner-level determinations are required. It compares IRC § 6230(a)(2)(A)(i) with the first parenthetical of § 6503(a). The Advice states that issuing an invalid notice without making a required direct assessment of the computational adjustment may allow the assessment period to expire before a valid assessment is made.

Ruling snapshot

  • Question: Does an invalid statutory notice suspend the assessment period for an inconsistently reported partnership item?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6222, 6230(a)(2)(A)(i), 6503(a)

Full text (IRS public release)

ID: CCA_2009082108532837 Number: 200944028
Release Date: 10/30/2009
Office: --------------
UILC: 6222.03-00

From: -------------------
Sent: Friday, August 21, 2009 8:53:29 AM
To: --------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Subject: RE: K-1 Discrepancies

The biggest problem is that the stat notice does not suspend the period for assessing the inconsistently reported item (unless partner-level determinations are required). Compare I.R.C. 6230(a)(2)(A)(i) with the first parenthetical of section 6503(a). So issuing an invalid notice, without making a required direct assessment of the computational adjustment may result in the period for assessment expiring before a valid assessment is made.

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