Ezel / IRS Rulings / 201114028

IRS explains who may agree to a partnership withholding liability

Number
201114028
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Settlement Agreement
Topics
Procedure, penalties, and administration
Code sections
§ 6224, § 6110
Ruling dated
March 1, 2011
Publicly released
April 8, 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 addresses a 60-day letter and Form 870-P concerning partnership withholding tax. It states that the letter should determine the partnership's withholding liability and the source and amount of domestic income allocated to foreign partners. A limited partner should not sign the form because only the partnership itself, acting through a general partner signing on its own behalf, can agree to the partnership's withholding liability and pay the tax.

Ruling snapshot

  • Question: May a limited partner agree to a partnership's withholding liability through a 60-day letter and Form 870-P?
  • Outcome: Advice given
  • Key authorities: IRC § 6224

Full text (IRS public release)

ID: CCA_2011030114372237 Number: 201114028
Release Date: 4/8/2011
Office: ----------

UILC: 6224.01-01

From: -------------------
Sent: Tuesday, March 01, 2011 2:37:26 PM
To: ---------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Subject: RE: 1441 Withholding - Investor 60 Day Letter/Form 870

The 60 day letter should not be a no change and the associated Form 870-P should not be signed by a limited partner. The letter should reflect and determine the partnership's withholding liability, in addition to the source and amount of domestic income allocated to foreign partners. Only the partnership itself, acting through a general partner signing on its own behalf, can agree that it has a withholding liability and pay the tax. The limited partner's agreement would be effectively meaningless absent the partnership itself agreeing to its withholding liability. --------------------------------------------------------------------------------------
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