Ezel / IRS Rulings / 1042029
Chief Counsel Advice 1042029 Released October 22, 2010 Advice

CCA 1042029: Return selection need not be resolved to determine a TEFRA adjustment

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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 Advice addressed whether an amended return or a superseding return should be used as the starting point for a TEFRA administrative adjustment request. It stated that the issue did not need to be resolved in the case. The IRS could use either return as starting numbers if it identified that choice, because the validity of the FPAA would not be affected. The required determination was the final income, deductions, and accounting method.

Ruling snapshot

  • Question: Must the IRS resolve whether an amended or superseding return is the proper starting point for a TEFRA adjustment?
  • Outcome: Advice given
  • Key authorities: IRC § 6227

Full text (IRS public release)

ID: CCA_2010082314015837 Number: 201042029
Release Date: 10/22/2010
Office: ----------
UILC: 6227.00-00

From: -------------------
Sent: Monday, August 23, 2010 2:02:02 PM
To: -------------------
Cc: ----------------------------------------
Subject: RE: Statutes - amended return or replacement return - impact on TEFRA AAR

My answer remains the same. It is not necessary to resolve the issue in this case. Just determine the
correct accounting method and income/deductions. You can use the first return as a starting point just as
long as you acknowledge those are the starting numbers and that you are using those instead of the
superseding return. Using either return as the starting point will not affect the validity of our FPAA. All
that is required is that we determine the end result of the income, deductions and accounting method.

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