Ezel / IRS Rulings / 201005045

CCA 201005045: An FPAA may recharacterize partnership debt for one tax year

Number
201005045
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Partnership Item
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
January 12, 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 a proposed FPAA for the 2007 partnership year. It says the FPAA may recharacterize debt as a capital contribution because each partnership year is a separate cause of action. The advice notes that the Tax Court recently agreed with that position, although the case was on appeal when the email was written.

Ruling snapshot

  • Question: May an FPAA for 2007 recharacterize debt as a capital contribution?
  • Outcome: Advice given.
  • Key authorities: IRC § 6231 and the TEFRA partnership procedures.

Full text (IRS public release)

ID: CCA_2010011209105637 Number: 201005045
Release Date: 2/5/2010
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Tuesday, January 12, 2010 9:10:58 AM
To: --------------------
Cc: -----------
Subject: RE: Another TEFRA question

We can issue an FPAA for 2007 that recharacterizes debt as a capital contribution since each partnership
year is a separate cause of action. The Tax Court recently agreed - but that case is on appeal. -------------
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