CCA 201102061: Form 872-IA may extend the statute for an AAR in specified circumstances

Plain-English summary

Chief Counsel advice addresses whether a Form 872-IA can extend the statute of limitations under section 6227(b) for an administrative adjustment request. The advice notes that the current forms do not cover the taxable year in which the partnership generated the deductions. It states that, if partnership items from the unextended year are claimed in a carryforward partner year that remains open under the forms, an AAR could arguably be filed for the closed partnership year to issue refunds in an open partner year.

Ruling snapshot

• Question: Can a Form 872-IA extend the statute for an AAR involving a closed partnership year and a later open partner year?
• Outcome: advice given
• Key authorities: IRC § 6227(b); Form 872-IA

Full text (IRS public release)

ID: CCA_2010120108423237 Number: 201102061
Release Date: 1/14/2011
Office: ----------
UILC: 6227.00-00

From: -------------------
Sent: Wednesday, December 01, 2010 8:42:42 AM
To: ---------------
Cc: ------------------------------------------------------------------------------- Subject: RE: Statute of Limitations - AAR ---------

A Form 872-IA can extend the statute under section 6227(b). The problem is that the current forms are not for the taxable year during which the partnership generated the deductions. To the extent the partnership items from the unextended year are claimed on a carryforward partner year that has been extended, however, this would arguably allow an AAR to be filed for the closed base partnership year for the purpose of issuing refunds in any year of a partner held open under the Forms 872-IA.