CCA 200944038: A Form 1040X may qualify as an AAR in limited circumstances

Plain-English summary

This Chief Counsel Advice considers whether a taxpayer's Form 1040X may be treated as an amended administrative adjustment request for partnership items. It states that this treatment could arguably apply if the taxpayer seeks to change partnership items, rather than only the computational effect of partnership items already determined, and if the form meets the regulatory requirements under IRC § 6227. The form would also have to be filed within three years of the relevant partnership-year Form 1065, and the filing period would not be extended by a different taxable year's one-year date. The Advice directs the Service Center to compare the form with the informal AAR requirements discussed in Samueli v. Commissioner, subject to the applicable timeliness requirements.

Ruling snapshot

• Question: Can a Form 1040X be treated as an administrative adjustment request under IRC § 6227?
• Outcome: Advice given
• Key authorities: IRC § 6227(a); Samueli v. Commissioner, 132 T.C. No. 16 (May 18, 2009)

Full text (IRS public release)

ID: CCA_2009081915370137 Number: 200944038
Release Date: 10/30/2009
Office: --------------
UILC: 6227.05-00

From: -------------------
Sent: Wednesday, August 19, 2009 3:37:02 PM
To: --------------------
Cc: -----------
Subject: RE: [ -------------] TEFRA assessment/statute

If the taxpayer is actually asking to change partnership items, rather than the computational effect of previously determined partnership items, then a Form 1040X could arguably be treated as an AAR, but only if it meets all the requirements specified under the regulations under section 6227. It would also have to be filed within 3 years of the relevant partnership year Form 1065. The period for filing an AAR is not extended by the one year date for a different taxable year. The Tax Court recently went through the informal AAR requirements in Samueli v. Commissioner 132 T.C. No 16 (May 18, 2009). So the Service Center would need to compare the Form 1040X with the requirements spelled out in Samuelli, but only if the forms were otherwise timely filed within the section 6227(a) three year period for the year being changed.