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Chief Counsel Advice 1138035 Released September 23, 2011 Advice

CCA 1138035: Section 465(e) recapture may be asserted without a prior TEFRA proceeding

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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 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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