Ezel / IRS Rulings / 200945044

A section 42 recapture item can be handled without a TEFRA proceeding

Number
200945044
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Affected Item
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
September 2, 2009
Publicly released
November 6, 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

Counsel advised that the section 42 recapture matter was an affected item rather than a partnership item. The IRS could issue an affected-item notice of deficiency without conducting a TEFRA proceeding. In computing the credit's basis, however, the IRS would be bound by the partnership's books and records, consistent with Roberts v. Commissioner.

Ruling snapshot

  • Question: Can the IRS issue a notice of deficiency for the section 42 recapture matter without a TEFRA proceeding?
  • Outcome: Advice given
  • Key authorities: IRC § 6231; Roberts v. Commissioner, 94 T.C. 853, 860

Full text (IRS public release)

ID: CCA_2009090216302337 Number: 200945044
Release Date: 11/6/2009
Office: ----------
UILC: 6231.05-00

From: -------------------
Sent: Wednesday, September 02, 2009 4:30:31 PM
To: -------------------------
Cc: ----------------------------------
Subject: RE: Sec 42 Recapture/ Partnership, Affected or Nonpartnership item

This would be an affected item. We can issue an affected item notice of deficiency without conducting a
TEFRA proceeding, but will be bound the partnership books and records in computing the basis for the
credit. See Roberts v. Commissioner, 94 T.C 853 at 860.

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