CCA 201116023: IRS discussed Form 872-P extensions for partnership AARs

Plain-English summary

Chief Counsel Advice discussed requests for administrative adjustment under IRC § 6227 and extensions made with Form 872-P. The memorandum stated that a taxpayer may file a request resulting in a refund within three years after the partnership return is filed, and that Form 872-P may extend that period. It also stated that the government may agree to an extension even when the taxpayer is not under audit, but the taxpayer has no unconditional right to obtain one. Finally, it addressed the possible effect of limiting an agreement to one issue.

Ruling snapshot

• Question: What rules apply when a taxpayer seeks a Form 872-P extension for a request under IRC § 6227?
• Outcome: Advice given
• Key authorities: IRC § 6227(b); Form 872-P

Full text (IRS public release)

ID: CCA_2011032411482037 Number: 201116023
Release Date: 4/22/2011
Office: ----------
UILC: 6227.00-00

From: -------------------
Sent: Thursday, March 24, 2011 11:48:25 AM
To: ---------------
Cc: -----------
Subject: RE: Question

1. Under section 6227 a taxpayer may file a request for administrative adjust resulting in
   a refund within three years of the date the partnership return is filed. A Form 872-P will extend the period for fling such a
   request under section 6227(b).

2. The government may agree to such an extension even if the taxpayer is not under audit.

3. There is no unconditional right of the taxpayer to enter into a Form 872-P, so the government could
   decline to agree to an extension.

4. If the agreement is restricted to one issue, we will not be able to assess tax related to other issues.
   Section 6227(b) does not address whether a right to file an AAR is limited to the items for which an
   extension is secured, but that would be the most obvious interpretation.