Ezel / IRS Rulings / 201011026

TEFRA exception requires reasonable reliance on the return

Number
201011026
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Definitions and Special Rules
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
February 12, 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 whether the exception in section 6231(g)(2) could apply when two partnerships were obviously subject to TEFRA based on their Forms 1065 and K-1s. The advice stated that the exception could not apply because it requires reasonable reliance on the return to determine that TEFRA does not apply. It also stated that the agents did not appear to have made that determination based on the returns.

Ruling snapshot

  • Question: Can the section 6231(g)(2) TEFRA exception apply when the partnership returns obviously show that TEFRA applies?
  • Outcome: advice given
  • Key authorities: IRC § 6231(g)(2); Forms 1065 and K-1

Full text (IRS public release)

ID: CCA_2010021212513237 Number: 201011026
Release Date: 3/19/2010
Office: ----------
UILC: 6231.00-00

From: -------------------
Sent: Friday, February 12, 2010 12:51:34 PM
To: -------------------
Cc: -----------
Subject: RE: AAR Case

If the two partnerships were "obviously TEFRA based on the Forms 1065 and K-1's" then section 6231(g)(2) could not apply since that provision requires "reasonable" reliance on the return to determine that TEFRA does not apply. In any event, it does not appear that the agents in fact made any such determination based on the returns.

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