CCA 201102056: Partnership liabilities remain as reported unless adjusted

Plain-English summary

Chief Counsel advice addresses the amount, character, and allocation of partnership liabilities. It states that those items remain as reported on the partnership return unless an FPAA adjusts them or taxpayers affirmatively seek a change in an FPAA petition. The advice also notes that section 6226(f) gives the court jurisdiction over all partnership items for the tax year and that an FPAA may deny a request for administrative adjustment.

Ruling snapshot

• Question: When may the amount, character, or allocation of partnership liabilities differ from the partnership return?
• Outcome: advice given
• Key authorities: IRC §§ 6226(f) and 6231; FPAA procedures

Full text (IRS public release)

ID: CCA_2010112210540337 Number: 201102056
Release Date: 1/14/2011
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Monday, November 22, 2010 10:54:07 AM
To: --------------------
Cc: -------------------------------------------------------------
Subject: RE: Partnership Liabilities

The amount, character and allocation of liabilities will remain as reported on the partnership return unless the FPAA adjusts these amounts or taxpayers affirmatively seek to change the reported amounts in a petition to the FPAA. Section 6226(f) gives the court jurisdiction over all partnership items for the tax year regardless of whether they are affirmatively addressed in the FPAA. I.R.C. 6226(f). An FPAA may also deny a request for administrative adjustment. See Harbor Cove v. Commissioner.

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