Ezel / IRS Rulings / 201011011

Activity character is determined at the partnership level

Number
201011011
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Affected Item
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
January 28, 2010
Publicly released
March 19, 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 addressed how a partnership proceeding and an affected-item proceeding divide responsibility. It stated that whether an activity is a trade or business, rental activity, or portfolio activity is determined at the partnership level. Whether an individual partner meets the material participation requirements is determined later through an affected-item notice of deficiency after the partnership proceeding ends. The advice cited Estate of Quick v. Commissioner.

Ruling snapshot

  • Question: Which issues are determined at the partnership level, and which are decided in an affected-item proceeding?
  • Outcome: advice given
  • Key authorities: IRC § 6231; Estate of Quick v. Commissioner

Full text (IRS public release)

ID: CCA_2010012808595037 Number: 201011011
Release Date: 3/19/2010
Office: ----------
UILC: 6231.05-00

From: -------------------
Sent: Thursday, January 28, 2010 8:59:59 AM
To: ----------------------
Cc: -----------
Subject: RE: Tefra question

The character of an activity as a trade or business, rental activity or portfolio activity is determined at the partnership level. Whether a partner meets the material participation requirements is determined through an affected item notice of deficiency issued after the partnership proceeding is over. See Estate of Quick v. Commissioner.

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