Ezel / IRS Rulings / 1120024
Chief Counsel Advice 1120024 Released May 20, 2011 Advice

CCA 1120024: no second audit is required before issuing an FPAA

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This page covers one taxpayer's ruling from 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 resolved one taxpayer's situation on its specific facts, 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 states that the Service does not need to redo an audit before issuing a final partnership administrative adjustment. It notes that IRC § 7605(b) generally prohibits a second examination and identifies IRC § 6223(d)(1) as the relevant timing limitation, requiring the notice of beginning of administrative proceeding to be issued at least 120 days before the FPAA. On the stated facts, the advice concludes that the FPAA could be issued in June.

Ruling snapshot

  • Question: Must the Service redo an audit before issuing an FPAA, and when may the FPAA be issued?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6223(d)(1) and 7605(b).

Full text (IRS public release)

ID: CCA_2011041808310437 Number: 201120024
Release Date: 5/20/2011
Office: ----------
UILC: 6223.00-00

From: -------------------
Sent: Monday, April 18, 2011 8:31:14 AM
To: -----------------
Cc: -----------
Subject: RE: TEFRA Question

There is no requirement to redo the audit and section 7605(b) generally prohibits a second examination in
any event. The only limitation is section 6223(d)(1) which requires the NBAP to be issued at least 120
days before the FPAA is issued.. So the FPAA can be issued in June.

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