Ezel / IRS Rulings / 1041039
Chief Counsel Advice 1041039 Released October 15, 2010 Advice

CCA 1041039: A signed partnership agreement covers attached adjustments unless it is partial

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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’s advice explains what a partner accepts by signing Form 870-PT when an Explanation of Adjustments is attached to the Schedule of Adjustments. The signed agreement generally resolves all partnership items for the year unless it is specifically designated as a partial agreement, while unadjusted items remain as reported. The advice instructs the IRS to review the signed agreement and attachments, and notes that the partners’ underlying section 6501 statute may provide additional assessment time if the section 6229(f) period has expired.

Ruling snapshot

  • Question: What adjustments does a partner agree to by signing Form 870-PT, and what assessment period may apply?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6224, 6229, and 6501; IRC § 6110(k)(3)

Full text (IRS public release)

ID: CCA_2010092211222437 Number: 201041039
Release Date: 10/15/2010
Office: ----------
UILC: 6224.01-01

From: -------------------
Sent: Wednesday, September 22, 2010 11:22:30 AM
To: --------------------
Cc: -----------
Subject: RE: Adj on 886-A not addressed on Sch of Adj, 4605-A or 886-Z

The Explanation of Adjustments is part of the FPAA if it is attached to the Schedule of Adjustments. It
may contain additional adjustments such as reallocations. When a partner signs the Form 870-PT he is
also agreeing to the adjustments contained in the Explanation of Adjustments (assuming that it is
attached). If the agreement is not specially designated as a "Partial Agreement" it resolves all
partnership items for the year - items that are not adjusted remain as reported. So you will need to look
at the actual signed agreement to see what the partner agreed to including any attachments to the
Schedule of Adjustments. If the one year period under section 6229(f) has already expired, you can
look to the partners' underlying section 6501 statute as possibly giving you more time to make any
assessments you missed.

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