Ezel / IRS Rulings / 1028041
Chief Counsel Advice 1028041 Released July 16, 2010 Advice

CCA 1028041: Chief Counsel addressed notice to partners after a tax matters partner dissolved

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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 whether the dissolution of a tax matters partner affected notice and election rights in a partnership proceeding. The advice asked whether a generic notice of the beginning of an administrative proceeding, or NBAP, had been issued under Treas. Reg. § 301.6223(a)-1(b). It stated that an NBAP sent to a particular partner primarily affected that partner’s right under IRC § 6223(e) to elect to have items converted, and that the right would not be available if the partner received the NBAP at least 120 days before the FPAA was sent. The advice also stated that notice to a pass-through partner constitutes notice to indirect partners holding interests through that partner.

Ruling snapshot

  • Question: What effect did an NBAP have on partner election rights when the tax matters partner later dissolved?
  • Outcome: advice given
  • Key authorities: IRC § 6223(e); Treas. Reg. §§ 301.6223(a)-1(b) and 301.6223(e)-2

Full text (IRS public release)

ID: CCA_2010061610073637 Number: 201028041
Release Date: 7/16/2010
Office: ----------
UILC: 6223.00-00

From: -------------------
Sent: Wednesday, June 16, 2010 10:07:39 AM
To: ------------------------
Cc: --------------------------------------------------
Subject: RE: General Question Related to Viability of Corporate TMP

Why do you think it matters?

Did we issue a generic TMP NBAP under Treas. Reg. 301.6223(a)-1(b)? If so, the TMP NBAP is treated
as having been mailed on that date regardless of whether the TMP subsequently dissolved.

The issuance of an NBAP to a particular partner appears to be only relevant to that particular partner's
right under section 6223(e) to elect to have his items converted. If that particular partner was sent an
NBAP at least 120 days before we sent the FPAA, it has no right to make such an election. Treas. Reg.
301.6223(e)-2. Issuance of an NBAP to any pass-thru partner constitutes notice to the indirect partners
holding an interest through the pass-thru partner.

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