Ezel / IRS Rulings / 201138035

CCA 201138035: Section 465(e) recapture may be asserted without a prior TEFRA proceeding

Number
201138035
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Affected Item
Topics
Procedure, penalties, and administration
Code sections
§ 465, § 6231, § 6110
Ruling dated
July 11, 2011
Publicly released
September 23, 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 the timing of a recapture under IRC § 465(e) in a TEFRA partnership matter. Relying on Roberts v. Commissioner, the advice stated that the IRS may assert the recapture as an affected item without first conducting a TEFRA proceeding. For purposes of calculating the affected-item recapture, the parties are bound by the partnership's reporting of its change from recourse debt to nonrecourse debt.

Ruling snapshot

  • Question: May the IRS assert section 465(e) recapture as an affected item without a prior TEFRA proceeding?
  • Outcome: advice given
  • Key authorities: IRC § 465(e); Roberts v. Commissioner, 94 T.C. 853, 860 (1990)

Full text (IRS public release)

ID: CCA_2011071108305737 Number: 201138035
Release Date: 9/23/2011
Office: ----------
UILC: 6231.05-00

From: -------------------
Sent: Monday, July 11, 2011 8:31:09 AM
To: ----------------------------
Cc: -----------
Subject: RE: TEFRA affected item

Under Roberts v. Commissioner, 94 T.C. 853, 860 (1990) we may assert the section 465(e) recapture as an affected item without conducting a prior TEFRA proceeding. For purposes of computing the affected item recapture the parties will be bound by the partnership's reporting of the change from recourse debt to nonrecourse debt.

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