Ezel / IRS Rulings / 201018009

CCA 201018009: Chief Counsel addressed a transferred amount as a partnership item

Number
201018009
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Partnership Item
Topics
Procedure, penalties, and administration
Code sections
§ 6231, § 6110
Ruling dated
April 13, 2010
Publicly released
May 7, 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 an amount transferred from a partner to a partnership was a partnership item and whether the IRS could proceed without a TEFRA proceeding. The advice stated that the amount and its character were partnership items when transferred in the partner's non-partner capacity. It further stated that the IRS could issue an affected-item notice of deficiency concerning the partner's deduction, but would be bound by the partnership's treatment of the amount in its books and records for that proceeding.

Ruling snapshot

  • Question: Can the IRS issue an affected-item notice of deficiency without a TEFRA proceeding when a transferred amount is a partnership item?
  • Outcome: Advice given
  • Key authorities: Treas. Reg. § 301.6231(a)(3)-1(c)(4); Roberts v. Commissioner, 94 T.C. 853, 860 (1990).

Full text (IRS public release)

ID: CCA_2010041308424237 Number: 201018009
Release Date: 5/7/2010
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Tuesday, April 13, 2010 8:42:47 AM
To: ------------------------
Cc: -----------
Subject: RE: TEFRA Issue

Treas. Reg. 301.6231(a)(3)-1(c)(4) includes as a partnership item the amount and its character transferred from a partner to the partnership in the partner's capacity other than as a partner. The deductibility to the partner of the amount transferred is thus affected by the partnership's characterization of the transferred amount. Under Roberts v. Commissioner, 94 T.C 853, 860 (1990) we can forgo a TEFRA proceeding and issue an affected item notice of deficiency addressing the deductibility of that amount to the partner, but will be bound by the partnership's treatment of this amount reflected on the partnership books and records for the purposes of that proceeding.

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