Non-TEFRA deficiency notice does not suspend the partnership-item statute

Plain-English summary

Chief Counsel advice addressed whether a non-TEFRA notice of deficiency suspended the statute of limitations for partnership items. The advice stated that although the IRS could rely on a partner's section 6501 statute to issue an FPAA, the non-TEFRA notice did not suspend the statute for partnership items under the first parenthetical in section 6503(a). It therefore appeared that the statute had expired for issuing an FPAA, while a notice of deficiency would suspend the statute for affected items subject to deficiency procedures under that same provision.

Ruling snapshot

• Question: Does a non-TEFRA notice of deficiency suspend the statute for partnership items?
• Outcome: advice given
• Key authorities: IRC §§ 6501 and 6503(a)

Full text (IRS public release)

ID: CCA_2010021215005537 Number: 201011025
Release Date: 3/19/2010
Office: ----------
UILC: 6503.00-00

From: -------------------
Sent: Friday, February 12, 2010 3:00:56 PM
To: --------------------------------------------
Cc: --------------------------------
Subject: RE: Statute

Even though we can rely on a partner's section 6501 statute to issue an FPAA, a non-TEFRA notice of deficiency does not suspend the partner's section 6501 statute for partnership items under the first parenthetical to section 6503(a). So the statute is probably gone for issuing an FPAA. A notice of deficiency would, however, suspend the statute for any affected items subject to deficiency procedures under that same parenthetical.