Ezel / IRS Rulings / 1039030
Chief Counsel Advice 1039030 Released October 1, 2010 Advice

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

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 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.

--------------------------------------------------------------------------------------------------------------------------------------------

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.