Ezel / IRS Rulings / 201032040

CCA 201032040: Notice of a partnership adjustment should go to partners with open statutes

Number
201032040
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Notice to Partners of Proceedings
Topics
Procedure, penalties, and administration
Code sections
§ 6223, § 6230
Ruling dated
July 2, 2010
Publicly released
August 13, 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 addresses a partnership proceeding in which the assessment period had expired for some partners but remained open for others. It advises that the IRS should link and issue the final partnership administrative adjustment to the tax matters partner and partners with open statutes, while identifying or delinking partners with barred statutes to prevent an inadvertent assessment. For indirect partners with open statutes, notice to the pass-through partners could be sufficient, with direct notice also available under section 6223(c)(3).

Ruling snapshot

  • Question: Which partners should receive or be linked to a final partnership administrative adjustment when statutes of limitation differ?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6223(a), (c), and (h), and 6230(f).

Full text (IRS public release)

ID: CCA_2010070211351937 Number: 201032040
Release Date: 8/13/2010
Office: ----------
UILC: 6223.00-00

From: -------------------
Sent: Friday, July 02, 2010 11:35:21 AM
To: --------------------
Cc: -----------
Subject: RE: Request for consultation

---------If the statute has expired for some partners and not others, you only need to link and issue FPAA's to the TMP and partners with open statutes. The partners with barred statutes should be delinked or otherwise identified by the Service Center as having barred statutes so that they are not inadvertently assessed based on the ultimate resolution of the FPAA by default or court decision.

Since the three partners with open statutes are indirect partners, FPAA's to the pass-thru partners through whom they hold their interests would be sufficient under section 6223(a), (c) and (h) and section 6230(f). Under section 6223(c)(3) you can also send these three partners direct notice of the FPAA. See Murphy v. Commissioner. ---------------------------------------------------------------------------------------------------------
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