Ezel / IRS Rulings / 200948056

CCA 200948056: TEFRA may apply when a Form 1065 lists a grantor trust as a partner

Number
200948056
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Period of Limitations for Making Assessments
Topics
Procedure, penalties, and administration
Code sections
§ 6229, § 6233, § 6110
Publicly released
November 27, 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 addresses a Form 1065 that lists two partners, including a flow-through entity such as a grantor trust. Counsel states that the TEFRA procedures apply in that situation even if no valid partnership exists. The advice cites IRC § 6233(b) and several court decisions, including Primco, which it describes as holding that a grantor trust takes a partnership out of the small-partnership exception.

Ruling snapshot

  • Question: Do the TEFRA procedures apply when a Form 1065 lists a grantor trust as one of two partners, even if no valid partnership exists?
  • Outcome: Advice given
  • Key authorities: IRC § 6233(b); Andantech v. Commissioner; Frazell v. Commissioner; Primco v. Commissioner

Full text (IRS public release)

ID: CCA-854190-08 Number: 200948056
Release Date: 11/27/2009
Office:
UILC: 6229.00-00

From: -------------------
Sent: Tuesday, August 05, 2008 4:19 PM
To: ------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
-------------------------
Subject: RE: Quick TEFRA question

If a Form 1065 is filed, it reflects two partners, one of whom is a flow through
entity such as a grantor trust, then TEFRA applies even if no valid partnership exists. I.R.C. 6233(b); Andantech v.
Commissioner, ---F.3d -- (D.C. Circuit); Frazell v. Commissioner - T.C. --; see also Primco v.
Commmisioner, T.C. Memo (grantor trust takes partnership out of small partnership exception).

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