Ezel / IRS Rulings / 200953022

CCA 200953022: Authority to extend the assessment period after partnership conversion

Number
200953022
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Assessment of Partnership Items, Converted to Nonpartnership Items
Topics
Procedure, penalties, and administration
Code sections
§ 6229
Ruling dated
December 9, 2009
Publicly released
January 1, 2010
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 2010, 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 2010
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

Chief Counsel advice considered the period for assessing tax after Forms 870-PT were completed and the partnership was converted. It explained that IRC § 6229(f) provides a one-year assessment period that may be extended by agreement between the Secretary and a partner. The Internal Revenue Manual did not permit the tax matters partner or an authorized person under Treas. Reg. § 301.6229(b)-1 to execute such an extension. Counsel stated that it was not aware of authority addressing whether a pass-through entity could extend the period after indirect partners executed Forms 870-PT.

Ruling snapshot

  • Question: Could a pass-through entity extend the assessment period after indirect partners executed Forms 870-PT?
  • Outcome: Advice given
  • Key authorities: IRC § 6229(f); Treas. Reg. § 301.6229(b)-1; IRM 4.31.2.6.6(1)

Full text (IRS public release)

ID: CCA_2009120909405154 Number: 200953022
Release Date: 12/31/2009
Office: --------------
UILC: 6229.07-00

From: --------------------------
Sent: Wednesday, December 09, 2009 9:40:53 AM
To: ------------------------------------------
Cc: ----------------------------------------------------------------- Subject: RE: Indirect tier wants to pay tax after conversion ---------

If the Forms 870-PT were complete, non-partial settlements, then the Service has one year from the agreement/conversion to assess. Section 6229(f) provides that that one year period "may be extended with respect to any partner by agreement entered into by the Secretary and such partner." The Internal Revenue Manual provides that neither the TMP, nor any person authorized pursuant to Treas. Reg. 301.6229(b)-1, may execute an extension under section 6229(f). IRM 4.31.2.6.6.(1). I am not aware of any authority addressing whether, where the indirect partners have executed Forms 870-PT, the pass- thru entity may extend the section 6229(f) period. -------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace