Ezel / IRS Rulings / 201103044

CCA 201103044: Counsel addresses consistent settlement agreements among partners

Number
201103044
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Application of Consistent Settlement Rule
Topics
Procedure, penalties, and administration
Code sections
§ 6224
Ruling dated
December 10, 2010
Publicly released
January 21, 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 advised that when one partner enters into a settlement agreement, another partner may request a consistent agreement. The settlement must be a written offer and acceptance concerning the treatment of partnership items. An exchange of correspondence might qualify as that offer and acceptance in some circumstances. The expiration of one partner's assessment period does not entitle partners whose assessment periods remain open to the same treatment under the consistent settlement rule.

Ruling snapshot

  • Question: When may a partner request consistent treatment after another partner settles partnership items?
  • Outcome: Advice given
  • Key authorities: IRC § 6224(c); Treas. Reg. § 301.6224(c)-3; Treaty Pines v. Commissioner

Full text (IRS public release)

ID: CCA_2010121010494237 Number: 201103044
Release Date: 1/21/2011
Office: ----------
UILC: 6224.02-00

From: -------------------
Sent: Friday, December 10, 2010 10:49:52 AM
To: ----------------------
Cc: -----------------------------
Subject: RE: AC Statute - Consistent Treatment

If a partner enters into a "settlement agreement" any other partner may request a "consistent agreement". I.R.C. 6224(c); Treas. Reg. 301.6224(c)-3. A settlement agreement generating such rights is a written offer and acceptance as to the treatment of partnership items. An exchange of correspondence may arguably in some circumstances be construed as such a written offer and acceptance. See Treaty Pines v. Commissioner. The fact that a partner's period for assessment expires while the period for assessing other partners remains open, however, does not entitle the partners with open statutes to be treated the same as partners with barred statutes under this consistent settlement statute.

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