Partnership provisions cannot shorten a partner's general assessment period

Plain-English summary

Counsel advised that the IRS could rely on a partner's section 6501 limitations period in all cases. Citing Curr-Spec Partners, L.P. v. Commissioner, the advice explained that section 6501(a) creates a three-year period for assessing tax against an individual partner, while section 6229(a) establishes only a minimum period that can extend, but cannot shorten, that general period. Counsel cautioned that a Form 872 that does not reference partnership items will not extend the partner's section 6501 period for those items.

Ruling snapshot

• Question: How do sections 6229 and 6501 interact for a partner's assessment period?
• Outcome: Advice given
• Key authorities: IRC §§ 6229(a) and 6501(a); Curr-Spec Partners, L.P. v. Commissioner, 2009 WL 2437764, *3 (5th Cir. 2009); Ginsburg v. Commissioner, 127 T.C. 75, 89 (2006)

Full text (IRS public release)

ID: CCA_2009091510524554 Number: 200945055
Release Date: 11/6/2009
Office: --------------
UILC: 6229.00-00

From: --------------------------
Sent: Tuesday, September 15, 2009 10:52:47 AM
To: --------------------
Cc: -----------------------------------------
Subject: RE: 9-25-09 Carryover adj

The Service can now rely on a partner's section 6501 statute in all cases. See Curr-Spec Partners, L.P. v. Comm'r, 2009 WL 2437764, *3 (5th Cir. 2009) ("The unambiguous language of IRC § 6229(a) and IRC
§ 6501(a) mandates our conclusion that IRC § 6501(a) creates a three-year limitations period within which the Commissioner must assess "any tax" on individual partners--a period which IRC § 6229(a) can never shorten, regardless of the length of time that might have elapsed between the filing of the partnership's informational return and the Commissioner's issuance of an FPAA. Rather, IRC § 6229(a) establishes only the minimum time period that, when necessary, extends, i.e., supercedes, the general three-year limitations period of IRC § 6501(a).").

Note, though, that a Form 872 that does not reference partnership items will not extend the partner's section 6501 period for partnership items. See Ginsburg v. Commissioner, 127 T.C. 75, 89 (2006).