Ezel / IRS Rulings / 201011020

Failure to report inconsistent treatment can trigger an accuracy penalty

Number
201011020
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Effect of Failure to Notify
Topics
Procedure, penalties, and administration
Code sections
§ 6222, § 6662
Ruling dated
February 3, 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 a partner's failure to notify the IRS about inconsistent treatment of a partnership item. It cited the Schedule K-1 instructions, which require the partner to file Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), for that notification. The advice stated that a partner may be subject to the IRC § 6662(a) accuracy-related penalty for failing to meet that requirement. It relied on IRC § 6222(d) and the cited Tax Court decisions.

Ruling snapshot

  • Question: What consequence can follow when a partner fails to notify the IRS of inconsistent treatment?
  • Outcome: advice given
  • Key authorities: IRC §§ 6222(d) and 6662(a); Wallis v. Comm'r, T.C. Memo. 2009-243; Blonien v. Commissioner, 118 T.C. 541, 550 n. 5 (2002)

Full text (IRS public release)

ID: CCA_2010020313363654 Number: 201011020
Release Date: 3/19/2010
Office: --------------
UILC: 6222.03-00

From: --------------------------
Sent: Wednesday, February 03, 2010 1:36:43 PM
To: ----------------
Cc: --------------------
Subject: 6222(d)

See Wallis v. Comm'r, T.C. Memo. 2009-243 ("The Schedule K-1 instructions require the partner to file
Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), in order to
notify the Commissioner of the inconsistent treatment. A partner is subject to the section 6662(a)
accuracy-related penalty if he fails to comply with this requirement. See sec. 6222(d); Blonien v.
Commissioner, 118 T.C. 541, 550 n. 5, 2002 WL 1298749 (2002).").

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