Ezel / IRS Rulings / 1041041
Chief Counsel Advice 1041041 Released October 15, 2010 Advice

CCA 1041041: An indirect partner who becomes a notice partner must agree directly to a settlement

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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 addresses whether a settlement can bind an indirect partner after that partner becomes a notice partner. The advice concludes that the pass-through partner can no longer bind the indirect partner to the settlement. The IRS must instead obtain a settlement agreement directly from the indirect partner. The conclusion relies on Treas. Reg. § 301.6224(c)-2.

Ruling snapshot

  • Question: Can a pass-through partner bind an indirect partner who has become a notice partner to a settlement?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6223 and 6224; Treas. Reg. § 301.6224(c)-2; IRC § 6110(k)(3)

Full text (IRS public release)

ID: CCA_2010092816281237 Number: 201041041
Release Date: 10/15/2010
Office: ----------
UILC: 6224.01-03

From: -------------------
Sent: Tuesday, September 28, 2010 4:28:15 PM
To: --------------------
Cc: -----------
Subject: RE: 6223(c)(3)

If an indirect partner becomes a notice partner the pass-thru partner through whom he holds an interest
can no longer bind him to a settlement. Treas. Reg. 301.6224(c)-2. Consequently, you must get any
settlement agreement directly from this indirect partner.

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