CCA 201101011: A settlement agreement with a pass-through partner can satisfy section 6224(c)(1)

Plain-English summary

An IRS matter asked whether a settlement agreement with a pass-through partner would be sufficient under section 6224(c)(1). The Office of Chief Counsel advised that the statute does not require the pass-through partner's statute to remain open before the agreement is executed. It also explained that a pass-through partner has no assessment statute of limitations because it is not a taxpayer and files an information return rather than a tax return. The advice concerns the requirements for settling a partnership-related matter.

Ruling snapshot

• Question: Can a settlement agreement with a pass-through partner satisfy section 6224(c)(1) when the partner's statute is not open?
• Outcome: Advice given
• Key authorities: IRC § 6224(c)(1)

Full text (IRS public release)

ID: CCA_2010100612164837 Number: 201101011
Release Date: 1/7/2011
Office: ----------
UILC: 6224.01-01

From: --------------------
Sent: Wednesday, October 06, 2010 12:16:51 PM
To: --------------------
Cc: ------------
Subject: RE: CASES RECEIVED -------------------------------------------------------

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------------------------- Technically a settlement agreement with the pass-thru partner would be sufficient under section 6224(c)(1)(last sentence). There is no requirement that the pass-thru partner's statute be open in order to execute such an agreement and, in any event, a pass-thru partner has no statute of limitations on assessment since it is not a taxpayer and files an information return rather than a tax return.