Ezel / IRS Rulings / 1028031
Chief Counsel Advice 1028031 Released July 16, 2010 Advice

CCA 1028031: Partnership withholding liability was a partnership item

Apply this to your situation

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 addressed several questions about IRC § 1446 withholding in a partnership proceeding. The advice treats the partnership entity as the taxpayer in the circumstances presented and says the Service should use Form 870-P. It states that the adjustments belonged in the Final Partnership Administrative Adjustment because they were adjustments to partnership items that could indirectly affect the partners' liabilities. The memorandum also takes the position that the partnership's withholding liability was a partnership item, and that if a court instead treated it as an affected item, IRC § 6229(d) would toll the limitations period for issuing the affected-item notice of deficiency.

Ruling snapshot

  • Question: How should partnership withholding and related adjustments be treated in an FPAA proceeding?
  • Outcome: advice given
  • Key authorities: IRC §§ 1446, 6229(d), and 6231; Form 870-P

Full text (IRS public release)

ID: CCA_2010060810435754 Number: 201028031
Release Date: 7/16/2010
Office: --------------
UILC: 6231.03-00

From: --------------------------
Sent: Tuesday, June 08, 2010 10:44:00 AM
To: -------------------------------------------
Cc: ------------------------------------------------------------------------------------------------------------
Subject: RE: IRC 1446 QUESTIONS.

1) Yes, the partnership entity is, under these circumstances, the taxpayer. The Service should
use F870-P

2) Yes, the adjustments should still appear in the FPAA. They are adjustments to partnership items that
may, indirectly, affect the liability of the other "partners".

3) Yes, see #2.

4) Yes, see #2. The liability of the partnership entity for withholding is a partnership item.

5) As stated above, we take the position that the withholding is a partnership item. To the extent that a
Court, in an FPAA proceeding determines that the withholding is an affected item, section 6229(d) will
have tolled the limitations period to issue the affected item notice of deficiency.

6) Yes.

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2010, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.