Ezel / IRS Rulings / 201124023

CCA 201124023: Who may file a partnership-level AAR for a REMIC

Number
201124023
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Determination
Topics
RICs and REITs
Code sections
§ 6227, § 6231, § 860F
Ruling dated
May 18, 2011
Publicly released
June 17, 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 addressed who may file an Administrative Adjustment Request for a TEFRA partnership involving a REMIC. The advice states that only a properly designated tax matters partner may file a partnership-level request, while a partner may file on that partner's own behalf. It concludes that a REMIC tax matters partner may file a partnership-level request because residual interest holders are treated as general partners for that designation, even if the tax matters partner lacked authority to sign the original partnership return.

Ruling snapshot

  • Question: Who may file an Administrative Adjustment Request on behalf of a TEFRA partnership involving a REMIC?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6227, 6231, 860F; Treas. Reg. §§ 1.860F-4(c), 1.860F-4(d), 301.6231(a)(7)-2.

Full text (IRS public release)

ID: CCA_2011051809141337 Number: 201124023
Release Date: 6/17/2011
Office: ----------
UILC: 860.04-00

From: -------------------
Sent: Wednesday, May 18, 2011 9:14:25 AM
To: ----------------------
Cc: ------------------------------------
Subject: RE: Informal Request for advice

Under section 6227 the tax matters partner (TMP) of a TEFRA partnership may file an Administrative Adjustment Request on behalf of the partnership. I.R.C. 6227(c).

Alternatively, any partner can file an AAR on his own behalf. I.R.C. 6227(d).

REMICS are subject to the TEFRA partnership procedures under section 860F(e). That section provides that the residual interest holders shall be treated as partners. A REMIC does not have a traditional "general partner" who could be designated as TMP under section 6231(a)(7). Consequently, Treas. Reg. 1.860F-4(d) provides that all residual interest holders are treated as general partners for TMP designation purposes.

Only a properly designated TMP may file an AAR on behalf of the partnership even if that person was not authorized to file the original return under Treas. Reg. 1.860F-4(c). This tracks similar rules that apply to LLC's under Treas. Reg. 301.6231(a)(7)-2.

A TEFRA proceeding or TMP level AAR is analogous to a class action of the partners with the TMP being the fiduciary for the class. So it is appropriate to have the REMIC TMP file a partnership-level AAR even if he had no authority to sign the original partnership return.

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