CCA 201012043: A TEFRA proceeding may address barred-year amounts carried to an open year

Plain-English summary

Chief Counsel Advice addressed assessment of amounts from a partnership year whose assessment period had expired, where partners carried those amounts into an open year. The advice stated that the IRS had to conduct a TEFRA proceeding for the barred year to assess the carried-over amounts in the open year. It cited Kligfeld v. Commissioner and G-1 Holdings v. Commissioner as authority. The advice also stated that computer records containing statute information should be corrected if they would produce an assessment for the barred years.

Ruling snapshot

• Question: How may the IRS address amounts from a barred TEFRA year that partners carried into an open year?
• Outcome: Advice given
• Key authorities: IRC § 6229; Kligfeld v. Commissioner; G-1 Holdings v. Commissioner

Full text (IRS public release)

ID: CCA_2010021912162937 Number: 201012043
Release Date: 3/26/2010
Office: ----------
UILC: 6229.00-00

From: -------------------
Sent: Friday, February 19, 2010 12:16:31 PM
To: -----------------------
Cc: -----------
Subject: RE: Easement Contribution FW: PCS Statute Code

You are correct that we must conduct a TEFRA proceeding for the ------- barred TEFRA year in order to
assess the amounts carried over by the partners to their open year. We may do this under Kligfeld v.
Commissioner and G-1 Holdings v. Commissioner. To the extent the statute information contained in our
computer system will result in an assessment for the barred years, this information should be corrected.
Not being a computer expert, I cannot tell you exactly how to do that.