Ezel / IRS Rulings / 201102063

Counsel discusses mitigation and TEFRA settlement authority

Number
201102063
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Circumstances of Adjustment
Topics
Other topics
Code sections
§ 1312
Ruling dated
December 3, 2010
Publicly released
January 14, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel attorneys answered questions about mitigation provisions, TEFRA partnerships, and settlement authority. The advice states that mitigation can apply to both TEFRA and non-TEFRA adjustments, depending on the facts and law. It also states that partnerships generally cannot bind their partners to settlements, so affected partners would likely need to sign Form 2259. The document is an internal legal analysis and does not resolve a taxpayer's particular filing.

Ruling snapshot

  • Question: How do mitigation provisions and TEFRA partnership settlement authority apply to the proposed analysis?
  • Outcome: advice given
  • Key authorities: TEFRA partnership procedures; mitigation provisions; Form 2259

Full text (IRS public release)

ID: CCA_2010120309085037 Number: 201102063
Release Date: 1/14/2011
Office: ----------
UILC: 1312.00-00

From: -------------------
Sent: Friday, December 03, 2010 9:09:03 AM
To: -------------------
Cc: -----------
Subject: RE: Question on TEFRA ----------------and mitigation issue now being raised

(1) FSA's are not binding precedent and merely represent the opinion of the attorneys who wrote it at the time the FSA was issued. FSA's are not reviewed or approved by Chief Counsel executives as are Revenue Rulings. Sometimes FSA's issued at different times, by different attorneys, on different facts will appear not to be consistent. So you should not feel bound by the prior FSA if your independent analysis reaches a different result. We would be happy to review your ultimate analysis.

(2) Mitigation applies to both TEFRA and non-TEFRA adjustments. But whether it applies in your particular case depends on your specific facts as applied to the law.

(3) Partnerships generally have no authority to bind their partners to settlements. Thus, the Form 2259 would likely have to be signed by the affected partners.

(4) -----------------------is familiar with both the mitigation provisions and TEFRA partnerships, so you may wish to use him as a resource in developing your analysis.

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