Ezel / IRS Rulings / 201052013

CCA 201052013: A trust that does not file a partnership return is not subject to TEFRA partnership provisions

Number
201052013
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Definitions and Special Rules
Topics
Procedure, penalties, and administration
Code sections
§ 6031, § 6231, § 761
Ruling dated
July 16, 2010
Publicly released
December 30, 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 considered whether the TEFRA partnership provisions apply to a trust. It explains that section 6231(a)(1) generally defines a partnership by reference to section 6031(a), which covers partnerships required to file a return. A trust that is not required to file a partnership return, Form 1065, is not subject to the TEFRA partnership provisions under this analysis. The advice defers to another office on interpreting and applying section 761(a).

Ruling snapshot

  • Question: Are TEFRA partnership provisions applicable to a trust that is not required to file a partnership return?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6031(a), 6231(a)(1), and 761(a)

Full text (IRS public release)

ID: CCA_2010071613515654 Number: 201052013
Release Date: 12/30/2010
Office: --------------
UILC: 6231.00-00

From: --------------------------
Sent: Friday, July 16, 2010 1:51:59 PM
To: -------------------------------------
Cc: -------------------------------------------
Subject: RE: DAT Question

The TEFRA partnership provisions apply only with regards to "partnerships" as defined by section 6231(a)(1), which generally defines "partnership" by reference to section 6031(a), which provides in relevant part: "Every partnership (as defined in section 761(a)) shall make a return for each taxable year . . . ." Section 761(a) defines the term "partnership" as a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, and which is not a corporation, trust, or estate. Thus, to the extent that the Service is addressing a trust that is NOT required to file a partnership return ( F1065), the entity is NOT subject to the TEFRA partnership provisions. We defer to -------------------
----------------- regarding interpretation and application of section 761(a).

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