A TEFRA proceeding continues through the petition or appeal period

Plain-English summary

Counsel advised that a TEFRA proceeding is deemed ongoing until an FPAA is issued and the period for filing a petition expires without a petition. If the FPAA is petitioned, the proceeding continues until a decision is entered and the appeal period expires. Because the FPAA petition period had not expired, the proceeding had not concluded, and the partner remained a party unless he elected out.

Ruling snapshot

• Question: When does a TEFRA proceeding conclude for purposes of a partner's participation?
• Outcome: Advice given
• Key authorities: Treas. Reg. § 301.6223(e)-2(b) and (c)

Full text (IRS public release)

ID: CCA_2009091509000737 Number: 200945053
Release Date: 11/6/2009
Office: ----------
UILC: 6223.04-02

From: -------------------
Sent: Tuesday, September 15, 2009 9:00:15 AM
To: --------------------
Cc: -------------------
Subject: RE: AAR 60 day obj ltr issued/NBAP/FPAA/untimely notice

Treas. Reg. 301. 6223(e)-(2)(b) and (c) provides that a proceeding is deemed to be ongoing until an FPAA is issued and the petition period has expired without a petition being filed. If the FPAA is petitioned, the TEFRA proceeding is deemed to continue until a decision is entered and the appeal period has expired. The proceeding has not "concluded" until the later of these two events.

Since the FPAA petition period has not expired, the proceeding has not yet concluded. Consequently, the partner will remain a party to the ongoing proceeding unless he elects out of the proceeding.