Ezel / IRS Rulings / 201005038

CCA 201005038: A settlement after partnership items convert is authorized under section 7121

Number
201005038
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Settlement Agreement
Topics
Procedure, penalties, and administration
Code sections
§ 7121, § 6224, § 6231
Ruling dated
January 7, 2010
Publicly released
February 5, 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

This internal IRS Chief Counsel advice addresses settling a large TEFRA adjustment with a direct partner. It says the Service may settle with the partner, but the authority for the settlement is IRC § 7121 rather than § 6224(c). The reason given is that the partnership items had already converted under § 6231(b)(1)(C).

Ruling snapshot

  • Question: Which statutory authority governs a settlement after partnership items have converted?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 7121, 6224(c), and 6231(b)(1)(C).

Full text (IRS public release)

ID: CCA_2010010708404637 Number: 201005038
Release Date: 2/5/2010
Office: ----------
UILC: 6224.01-01

From: -------------------
Sent: Thursday, January 07, 2010 8:40:50 AM
To: --------------------
Cc: -------------------------------------
Subject: RE: Large TEFRA adjustment to true up on current year return

We can settle with the direct partner but the authority would be under section 7121 rather than 6224(c)
since the partnership items have already converted under section 6231(b)(1)(C).

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