CCA 201012047: Summonses may seek partnership-item facts in a TEFRA proceeding

Plain-English summary

Chief Counsel Advice addressed whether the IRS could use a summons to obtain facts in a TEFRA partnership proceeding. The advice stated that facts subject to the summons appeared to be partnership items under Treas. Reg. § 301.6231(a)(3)-1(b), making a summons appropriate in the TEFRA proceeding. It also stated that a summons for affected items would be appropriate under the Powell factors because the parties to the TEFRA proceeding and any later affected-item proceeding would be the same. The advice further noted that party information may be disclosed in a TEFRA audit even if it may not constitute a partnership item.

Ruling snapshot

• Question: May the IRS summon facts relevant to partnership or affected items in a TEFRA proceeding?
• Outcome: Advice given
• Key authorities: IRC §§ 6231 and 7602; Treas. Reg. § 301.6231(a)(3)-1(b); the Powell factors; Abilene v. U.S. (9th Cir.)

Full text (IRS public release)

ID: CCA_2010022309313437 Number: 201012047
Release Date: 3/26/2010
Office: ----------
UILC: 7602.00-00

From: -------------------
Sent: Tuesday, February 23, 2010 9:31:37 AM
To: --------------------
Cc: -----------
Subject: RE: TEFRA Question

Under Treas. Reg. 301.6231(a)(3)-1(b) it looks like all the facts subject to summons are partnership items and, thus, a summons for those facts is appropriate in this TEFRA proceeding. The parties to the TEFRA proceeding and any later affected item proceeding are the same in any event so that a summons with respect to affected items would be appropriate under the Powell factors. See also Abilene v. U.S. (9th Cir)(party information may be disclosed in a TEFRA audit even if it may not constitute a partnership item).