Ezel / IRS Rulings / 1121016
Chief Counsel Advice 1121016 Released May 27, 2011 Advice

CCA 1121016: failure-to-file penalty is not determined at the partnership level

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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 addressed whether a partnership’s failure-to-file penalty was determined under the TEFRA partnership procedures. The advice stated that IRC § 6221 applies at the partnership level to penalties related to an adjustment to a partnership item, such as partnership income or loss. Because a failure-to-file penalty is not based on an adjustment to a partnership item, it is not determined under those procedures.

Ruling snapshot

  • Question: Is a partnership’s failure-to-file penalty determined under the TEFRA partnership procedures?
  • Outcome: Advice given.
  • Key authorities: IRC § 6221.

Full text (IRS public release)

ID: CCA_2011042209110537 Number: 201121016
Release Date: 5/27/2011
Office: ----------
UILC: 6221.00-00

From: -------------------
Sent: Friday, April 22, 2011 9:11:10 AM
To: -------------------
Cc: ------------------------------------------------------------
Subject: RE: Question - Partnership Delinquency Penalty - Please Answer

Section 6221 provides for a determination at the partnership level for any penalty "which relates to an
adjustment to a partnership item." (emphasis supplied).

The failure to file penalty is not based on an adjustment to a partnership item (e.g., an adjustment to
partnership income or loss). So it is not determined under the TEFRA partnership procedures pursuant to
section 6221.

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