Ezel / IRS Rulings / 201011022

FPAA should issue to the source tier showing a working interest

Number
201011022
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Treatment Determined At Partnership Level
Topics
Procedure, penalties, and administration
Code sections
§ 6221
Ruling dated
February 4, 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 which partnership tier should receive an FPAA when a working interest was shown in a tiered structure. The advice stated that the IRS should issue the FPAA to the source tier, or the closest tier to it, that had a return or books and records indicating a working interest. Without a partnership-level proceeding, the IRS was bound by the partnership items as determined by the partnership.

Ruling snapshot

  • Question: Which tier should receive an FPAA when records indicate a working interest in a tiered partnership structure?
  • Outcome: advice given
  • Key authorities: IRC § 6221; Roberts v. Commissioner, 94 T.C. 853, 862 (1990)

Full text (IRS public release)

ID: CCA_2010020408445354 Number: 201011022
Release Date: 3/19/2010
Office: --------------
UILC: 6221.00-00

From: --------------------------
Sent: Thursday, February 04, 2010 8:44:56 AM
To: ---------------------
Cc: --------------------
Subject: RE: Partnership vs. non-partnership question #2

The Service should issue the FPAA to the source tier, or the closest tier to the source tier, that has a return, or books and records, indicating a working interest. In the absence of a partnership-level proceeding, the Service is bound by the partnership items as determined by the partnership. Roberts v. Commissioner, 94 T.C. 853, 862 (1990).

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace