CCA 201101013: Delegation orders may authorize partnership-item settlements

Plain-English summary

Chief Counsel Advice addressed the authority for settling partnership items through a closing agreement. It states that the courts have treated a partnership-item settlement under IRC § 6224(c) as a subsection of IRC § 7121 explaining how closing agreements operate for partnership-item settlements. The advice identifies delegation order 97 and delegation order 4-19 as alternative sources of authority. It does not identify who would serve as a "GS-12 revenue agent reviewer" for the described purpose.

Ruling snapshot

• Question: What authority may support a closing agreement settling partnership items?
• Outcome: Advice given
• Key authorities: IRC §§ 6224(c) and 7121; delegation orders 97 and 4-19

Full text (IRS public release)

ID: CCA_2010100615120037 Number: 201101013
Release Date: 1/7/2011
Office: ----------
UILC: 6224.01-01

From: --------------------
Sent: Wednesday, October 06, 2010 3:12:02 PM
To: ------------------------
Cc: ---------------------------------
Subject: RE: TEFRA Question (closing agreement)

The courts have held that a partnership item settlement under section 6224(c) is, in effect, just a subsection of 7121 that explains how section 7121 operates in the context of a settlement of partnership items.

So either delegation order 97 (closing agreements) or delegation order 4-19 relating to partnership items provide alternative authority for such settlements. -------------------------------------------------------------------------
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I am not sure who would constitute a "GS-12 revenue agent reviewer" for this purpose. ------------------- knows. We usually get appeals to execute these in any event.