Ezel / IRS Rulings / 201039030

A grantor trust and its owner may be partners under different TEFRA provisions

Number
201039030
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Partner
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
August 31, 2010
Publicly released
October 1, 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 whether a grantor trust and its owner are partners for TEFRA purposes. The advice states that the trust would likely be a partner under IRC § 6231(a)(2)(A), while the owner would be a partner under § 6231(a)(2)(B) because the income flows through to her. The advice also notes that the owner may not be a general partner if she is not a direct partner.

Ruling snapshot

  • Question: How are a grantor trust and its owner treated as partners under the TEFRA partnership provisions?
  • Outcome: Advice given
  • Key authorities: IRC § 6231(a)(2)(A) and (B)

Full text (IRS public release)

ID: CCA_2010083108360037 Number: 201039030
Release Date: 10/1/2010
Office: ----------
UILC: 6231.02-00

From: -------------------
Sent: Tuesday, August 31, 2010 8:36:08 AM
To: --------------------------
Cc: -----------
Subject: RE: TEFRA question

If the trust is a grantor trust it would likely only be a partner under section 6231(a)(2)(A) since, as a
nontaxable pure flow through entity, it has no tax liability under (B). Mom would be a partner under (B)
since the income flows to her.

But Mom may not be a "general" partner if she is not a direct partner.

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