Ezel / IRS Rulings / 1024062
Chief Counsel Advice 1024062 Released June 18, 2010 Advice

CCA 1024062: Counsel advised against using Munro computations in a TEFRA scenario

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This page covers one taxpayer's ruling from 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 resolved one taxpayer's situation on its specific facts, 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

The Office of Chief Counsel considered how to calculate a deficiency when a taxpayer reported a loss, a non-TEFRA adjustment created net income, and a TEFRA partnership proceeding was still pending. Counsel concluded that the IRS should not use the Munro computations under the described scenario. The memo explains that disregarding the partnership income could produce only a de minimis deficiency while affecting the IRS's ability to assess the non-TEFRA income later.

Ruling snapshot

  • Question: Should the IRS use the Munro computations when a TEFRA proceeding and a non-TEFRA adjustment overlap?
  • Outcome: Advice given
  • Key authorities: IRC § 6231; TEFRA partnership procedures

Full text (IRS public release)

ID: CCA_2010051408592137 Number: 201024062
Release Date: 6/18/2010
Office: --------
UILC: 6231.00-00

From: --------------------
Sent: Friday, May 14, 2010 9:00:04 AM
To:
Cc:
Subject: RE: Possible munro situation

If the taxpayer reported a $ loss, and we have a $ + non-TEFRA adjustment we would
determine a deficiency on approximately $ of net income.

If we if ignore the net income from the partnership (also about $ ), the starting "reported amount" would
be a negative $ . This would result in a de minimus deficiency. When the TEFRA proceeding is over,
we will likely only be able to asses additional partnership income and we will have forgone our ability to
assess a deficiency on the $ of net non-TEFRA income.

So I agree that we should not use the Munro computations under this scenario.

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