Ezel / IRS Rulings / 200947054

CCA 200947054: Anti-abuse regulation does not apply to a disregarded entity

Number
200947054
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Partnership ISP - Subchapter K Anti-Abuse Rule Regulation Section 1.701-2
Topics
Partnerships
Code sections
§ 701, § 6110
Publicly released
November 20, 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

This Chief Counsel advice considers whether the Subchapter K anti-abuse rule in Treas. Reg. § 1.701-2 applies to a redacted entity. The writer states that the entity is not a partnership because it is treated as a disregarded entity for federal tax purposes. The advice therefore concludes that § 1.701-2 does not apply and that no request to apply that provision is necessary.

Ruling snapshot

  • Question: Does Treas. Reg. § 1.701-2 apply to an entity treated as disregarded for federal tax purposes?
  • Outcome: Advice given
  • Key authorities: IRC § 701; Treas. Reg. § 1.701-2

Full text (IRS public release)

ID: CCA-730143-09 Number: 200947054
Release Date: 11/20/2009
Office: --------------
UILC: 701.01-00

From: -----------------
Sent: Thursday, July 30, 2009 2:39 PM
To: -----------------------
Cc: ----------------------------
Subject: Partnership/DE question

Hey-------- -

You would be correct in concluding that --------- is not a partnership. Based on the fact that --------- is a
DE for federal tax purposes, it follows that Section 1.701-2 will not apply and no request for the
application of that statute is necessary.

Let me know if you have any other questions.

----

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