Ezel / IRS Rulings / 200945054

Section 6229 does not control a section 6223 conversion

Number
200945054
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Other Requests
Topics
Procedure, penalties, and administration
Code sections
§ 6223, § 6229, § 6501
Ruling dated
September 15, 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 section 6229 does not control a section 6223 conversion. Section 6223 operates when the IRS fails to issue a notice of beginning of administrative proceeding 120 days before the FPAA, or fails to issue an FPAA to notice partners within 60 days after issuing it to the tax matters partner. An election based only on an expired section 6229 limitations period would be invalid unless one of those notice deadlines was violated. Counsel also advised that an FPAA suspends a partner's section 6501 period under section 6229(d).

Ruling snapshot

  • Question: Can a partner elect a section 6223 conversion solely because the section 6229 period has expired?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6223, 6229(d), and 6501; Rhone-Poulenc v. Commissioner, 114 T.C. 533, 552

Full text (IRS public release)

ID: CCA_2009091510181337 Number: 200945054
Release Date: 11/6/2009
Office: ----------
UILC: 6223.04-00

From: -------------------
Sent: Tuesday, September 15, 2009 10:18:20 AM
To: --------------------
Cc: -----------
Subject: RE: AAR 60 day obj ltr issued/NBAP/FPAA/untimely notice ---------

Section 6229 has no bearing on a section 6223 conversion Section 6223 only operates when we fail to issue an NBAP 120 days before the FPAA, or fail to issue FPAA's to the notice partners within 60 days of issuing the FPAA to the TMP.

If your partner purported to elect conversion based on and expired section 6229 statute, that would be an invalid election unless the 120 or 60 day time periods above were violated.

An FPAA suspends a partner's section 6501 period under section 6229(d). Section 6229(d)t suspends the period under subsection 6229(a) which is deemed to refer to each partner's section 6501 period as it applies to partnership items. Rhone-Poulenc v. Commissioner, 114 T.C. 533 at 552.

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