Ezel / IRS Rulings / 201042032

CCA 201042032: TEFRA procedures do not apply to a flow-through entity with one owner

Number
201042032
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Exception for Small Partnerships
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
September 30, 2010
Publicly released
October 22, 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 addressed whether TEFRA partnership procedures applied to a flow-through entity owned by a single person. It concluded that the TEFRA provisions do not apply even if the owner holds both a limited and an unlimited interest and the entity purported to elect TEFRA treatment. The advice therefore stated that only non-TEFRA deficiency procedures apply to the entity's sole owner.

Ruling snapshot

  • Question: Do TEFRA partnership provisions apply to a flow-through entity owned by one person that purported to elect TEFRA treatment?
  • Outcome: Advice given
  • Key authorities: IRC § 6231

Full text (IRS public release)

ID: CCA_2010093014491837 Number: 201042032
Release Date: 10/22/2010
Office: ----------
UILC: 6231.01-01

From: -------------------
Sent: Thursday, September 30, 2010 2:49:21 PM
To: --------------------
Cc: -------------------------------------------------------
Subject: RE: TEFRA/non-TEFRA/DUAL PROCEDURES

The TEFRA partnership provisions do not apply to a flow through entity owned by a single person, even if that person holds both a limited and unlimited interest even if the entity has made a purported election to be governed by TEFRA. Thus, only non-TEFRA deficiency procedures apply to the sole owner of the entity.

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