Ezel / IRS Rulings / 201027056

CCA 201027056: Advice on statute limitations for a TEFRA partnership proceeding

Number
201027056
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Partner
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
June 3, 2010
Publicly released
July 9, 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 discusses whether a TEFRA partnership proceeding can be conducted when the partnership itself has no statute of limitations. The advice states that a proceeding can affect only partners whose statutes remain open. It identifies differing authorities on whether determining the correct partners is a partnership item, an affected item, or a nonpartnership item. The advice concerns a question involving a Roth IRA and a TEFRA partner extension.

Ruling snapshot

  • Question: Can the IRS conduct a TEFRA proceeding when the partnership has no statute of limitations and only some partners' statutes remain open?
  • Outcome: advice given
  • Key authorities: IRC § 6231; Chef's Choice v. Commissioner; Blonien; Katz; Grigoraci; Hang; Alpha/Sands

Full text (IRS public release)

ID: CCA_2010060315294537 Number: 201027056
Release Date: 7/9/2010
Office: ----------
UILC: 6231.02-00

From: -------------------
Sent: Thursday, June 03, 2010 3:29:56 PM
To: ---------------
Cc: ------------------------------------------------------
Subject: RE: Roth IRA as a TEFRA Partner-Extension of the Statute

The TEFRA entity has no statute of limitations and is not a party to a TEFRA proceeding which is, in essence, a type of class action audit of the partners.See Chef's Choice v. Commissioner. So if the statute is open for any partner we can conduct a TEFRA proceeding that will affect only those partners whose statute is open.

Under Blonien (Tax Court) and Katz (10th Cir) the determination of the correct partners is a partnership item. Under Grigoraci (T.C. Memo.) its an affected item. Under Hang (Tax Court) and Alpha/Sands (Claims Court) it is a nonpartnership item. -----------------------------------------------------------------------------------
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