Ezel / IRS Rulings / 201112020

CCA 201112020: Gross payments between a partnership and partner are partnership items

Number
201112020
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Partnership Item
Topics
Procedure, penalties, and administration
Code sections
§ 6231, § 707, § 6110
Ruling dated
February 22, 2011
Publicly released
March 25, 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 a payment from a partnership to a partner in the partner's capacity other than as a partner, under section 707, is a partnership item under the cited Treasury regulations. The advice distinguished affected items, such as the cost of goods a partner sold to the partnership, from gross payments between the partnership and partner, which it treated as partnership items.

Ruling snapshot

  • Question: Are gross payments between a partnership and a partner partnership items?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6231 and 707; Treas. Reg. §§ 301.6231(a)(3)-1(a)(2)(iii) and 301.6231(a)(3)-1(c)(4)

Full text (IRS public release)

ID: CCA_2011022213581237 Number: 201112020
Release Date: 3/25/2011
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Tuesday, February 22, 2011 1:58:20 PM
To: ---------------------
Cc: -----------
Subject: RE: Tefra Question - ------------------------

A payment from a partnership to a partner other than in the partner's capacity as a partner (under section 707) is a partnership item under Treas. Reg. 301.6231(a)(3)- 1(a(2)(iii) and 301.6231(a)(3)-1(c)(4). An affected item would be limited to things such as the cost of goods a partner sold to the partnership. But the gross payments between a partnership and partner (as in your case) would be partnership items.

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