Ezel / IRS Rulings / 1028037
Chief Counsel Advice 1028037 Released July 16, 2010 Advice

CCA 1028037: Chief Counsel addressed TEFRA issues after partnership dissolution

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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 addressed several TEFRA partnership-proceeding questions. It concluded that a § 743(b) election was a partnership item, that a statute extension at the source partnership level applied to tier and indirect partners, and that inconsistent treatment at lower tiers could be assessed as a computational adjustment. It also stated that dissolving the partnership did not affect TEFRA proceedings for a year in which the entity was a partnership, and that the tax matters partner acted as the partners’ agent for that year.

Ruling snapshot

  • Question: How did partnership-item, statute-extension, and dissolution rules affect the TEFRA proceeding?
  • Outcome: advice given
  • Key authorities: IRC §§ 6231(a)(3), 6231(a)(6), and 743(b); Treas. Reg. § 301.6231(a)(3)-1(a)(3)

Full text (IRS public release)

ID: CCA_2010061110134337 Number: 201028037
Release Date: 7/16/2010
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Friday, June 11, 2010 10:13:49 AM
To: -----------------
Cc: --------------------------------------------------------------------------------------------------------
Subject: RE: Question re: statutes for TEFRA case

  1. A 743(b) election is partnership item. Treas. Reg. 301.6231(a)(3)-1(a)(3).

  2. The statute extension at the source partnership level applies to all tier and indirect partners.

  3. Once the partnership item is determined, inconsistent treatment of this item in tiers below can be
    assessed as a computational adjustment. See I.R.C. 6231(a)(6)(last sentence).

  4. The subsequent dissolution of the partnership has no effect on the TEFRA proceedings for the year in
    which it was a partnership. See Chef's Choice v. Commissioner. A TEFRA proceeding is analogous to a
    class action of the partners for the year in issue and the TMP is the agent for the partners, not the
    partnership. So as long as the TMP did not dissolve, it can sign a Form 2848. Only partners for the year
    in issue can sign the appropriate forms 870.

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