Ezel / IRS Rulings / 1027056
Chief Counsel Advice 1027056 Released July 9, 2010 Advice

CCA 1027056: Advice on statute limitations for a TEFRA partnership proceeding

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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

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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