Ezel / IRS Rulings / 201109023

CCA 201109023: An FPAA must identify the starting numbers for partnership adjustments

Number
201109023
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
TEFRA Questions
Topics
Procedure, penalties, and administration
Code sections
§ 6223
Ruling dated
February 7, 2011
Publicly released
March 4, 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 advice addressed an audit of a partnership taxable year under the TEFRA rules. It concluded that a second return changing the reported numbers would not affect the result, so long as the notice of final partnership administrative adjustment, or FPAA, made a final determination of the amount and allocation of partnership items. The FPAA also needed to clearly identify the starting numbers from which the adjustments were made.

Ruling snapshot

  • Question: What must an FPAA state when reported partnership numbers may change?
  • Outcome: Advice given.
  • Key authorities: IRC § 6223.

Full text (IRS public release)

ID: CCA_2011020708303937 Number: 201109023
Release Date: 3/4/2011
Office: ----------
UILC: 6223.00-00

From: -------------------
Sent: Monday, February 07, 2011 8:30:54 AM
To: -------------------
Cc: ------------------------------------
Subject: RE: TEFRA Questions

We are auditing the partnership taxable year so it does not matter if a second return changes the reported numbers. To be valid the FPAA only needs to make a final determination of the amount and allocation of partnership items - we only need to be clear in the FPAA as to which starting numbers the adjustments are being made from. But it should not make a difference which numbers we start with since in both cases we are going to arrive at a bottom line number regardless of what number the partnership starts with.

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