An AAR overassessment may be abated if it has not been paid

Plain-English summary

Chief Counsel advised that the IRS could consider abating an overassessment if the taxpayers had not yet paid it. The advice also stated that examining a partnership's books and records without issuing a notice of the beginning of administrative proceeding does not, by itself, establish that the partnership was not subject to the TEFRA partnership rules. Even if that position were valid, the determination would have to be reasonable based on the partnership return under section 6231(g)(2).

Ruling snapshot

• Question: Could the IRS abate an unpaid overassessment, and does an examination without an NBAP establish that a partnership is not a TEFRA partnership?
• Outcome: Advice given.
• Key authorities: IRC § 6231(g)(2).

Full text (IRS public release)

ID:      CCA_2010011410071654                   Number: 201007055
                                               Release Date: 2/19/2010
Office: --------------
UILC:    6231.01-00


From: --------------------------
Sent: Thursday, January 14, 2010 10:07:18 AM
To: -----------------------------------------
Cc:
Subject: RE: AAR Case


If taxpayers have not yet paid the overassessment, the Service could consider abating
the overassessment. I am not aware of any authority for the proposition that the
examination of the books and records of a partnership without issuance of an NBAP is a
determination that the partnership is not a TEFRA partnership. Even if that proposition
were valid, under 6231(g)(2) the determination would have to be reasonable on the
basis of the partnership return.