Advice on a TMP request after the assessment period expired

Plain-English summary

Chief Counsel advised that issuing a notice of beginning of administrative proceeding, or NBAP, did not prevent the assessment statute under section 6229 from expiring. The advice stated that the NBAP should be withdrawn if the 45-day period was still open and treated as a nullity in any event because no partner would remain a party to the TEFRA proceeding. The tax matters partner's administrative adjustment request could be processed normally, because section 6228(a)(2)(C) allowed the tax matters partner to petition despite the prior NBAP after the assessment statute expired.

Ruling snapshot

• Question: How should a tax matters partner's administrative adjustment request be handled after the assessment statute expired and an NBAP had issued?
• Outcome: Advice given
• Key authorities: IRC §§ 6228 and 6229

Full text (IRS public release)

ID: CCA_2010012709412137 Number: 201008046
Release Date: 2/26/2010
Office: ----------
UILC: 6228.01-00

From: -------------------
Sent: Wednesday, January 27, 2010 9:41:27 AM
To: --------------------
Cc: -----------
Subject: RE: ------ ------- AAR

The issuance of an NBAP had no effect on the section 6229 statute which subsequently expired. We should withdraw the NBAP if we are still within the 45 day period. We should treat it as a nullity in any event since no partner would remain as a party to the TEFRA proceeding.

We should just process the TMP AAR in the normal way without regard to the NBAP. Under section 6228(a)(2)(C) , the expiration of the statute allows the TMP to petition the AAR notwithstanding the prior issuance of the NBAP, which would have barred a petition if the assessment statute had not expired.