CCA 201102060: Advice on the deadline for an administrative adjustment request

Plain-English summary

Chief Counsel advice discusses the deadline for filing an administrative adjustment request. It states that the request generally must be filed within three years after the partnership return was filed, or within an extension of the section 6229 period for that year plus six months. The advice concludes that it was too late to file an AAR unless Forms 872-IA for later carryforward years kept the earlier partnership items open, and that those extensions would not hold open the statute for a deduction for year 1. It also says the facts do not establish whether the deductions would have been fully deductible in year 1.

Ruling snapshot

• Question: Were the partners still within the period for filing an AAR based on extensions for later carryforward years?
• Outcome: advice given
• Key authorities: IRC §§ 6227(b) and 6229; Form 872-IA

Full text (IRS public release)

ID: CCA_2010113016384837 Number: 201102060
Release Date: 1/14/2011
Office: ----------
UILC: 6227.00-00

From: -------------------
Sent: Tuesday, November 30, 2010 4:38:52 PM
To: ---------------
Cc: ------------------------------------------------------------------------------- Subject: RE: Statute of Limitations - AAR

A request for administrative adjustment has to be filed within 3 years of the date the partnership return was filed or within an extension of the section 6229 period for that year plus 6 months. I.R.C. 6227(b). So it is too late for partners to file an AAR unless the Forms 872-IA for later carryforward years are considered to hold open the year 1 partnership items. The extensions would not hold open the statute for a deduction for year 1. Your facts are unclear as to whether the deductions would have been fully deductible in Year 1 if they had been properly characterized.