The FPAA statute remains open if no Form 1042 was filed

Plain-English summary

Counsel advised that, when no Form 1042 is filed, the statute of limitations remains open indefinitely for issuing an FPAA to a partnership for withholding-tax liability. Section 6229 provides a minimum period during which a partner’s section 6501 statute will not expire, but it does not itself determine when the statute actually expires. The partnership and partner may have longer limitation periods if they file Forms 1042 or 1040 after the three-year minimum period.

Ruling snapshot

• Question: How long is the statute open for issuing an FPAA when no Form 1042 was filed?
• Outcome: Advice given
• Key authorities: IRC §§ 6229, 6501, 1040, and 1042

Full text (IRS public release)

ID: CCA_2009092211511937 Number: 200945064
Release Date: 11/6/2009
Office: ----------
UILC: 6229.01-00

From: -------------------
Sent: Tuesday, September 22, 2009 11:51:25 AM
To: ---------------------
Cc: -----------
Subject: RE: TEFRA

If no Form 1042 was filed, the statute of limitations is held open indefinitely for issuing an FPAA to the partnership for its withholding tax liability. Section 6229 provides a period during which no partner's section 6501 statute will expire with respect to partnership return. It does not set forth the time the statute will actually expire. The partnership (for Form 1042 withholding tax purposes) and the partner (for income tax purpose) will have a longer statute if they file their Form 1042 or Form 1040 after the three year minimum period under section 6229. So if no Form 1042 was filed, the statute for issuing an FPAA for these purposes is open indefinitely.