Ezel / IRS Rulings / 1140023
Chief Counsel Advice 1140023 Released October 7, 2011 Advice

CCA 1140023: An AAR does not alter an FPAA’s final partnership-item determination

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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 explains how an administrative adjustment request, or AAR, affects a final partnership administrative adjustment, or FPAA. The advice states that the FPAA should use the partnership return as originally filed, rather than numbers later submitted in an AAR. It concludes that the FPAA is the final administrative determination of all partnership items, so an AAR petition cannot be filed after the IRS issues an FPAA and partners may challenge adjustments in the FPAA proceeding.

Ruling snapshot

  • Question: Should an FPAA use numbers from an AAR, and can an AAR petition be filed after the IRS issues the FPAA?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6227 and 6229.

Full text (IRS public release)

ID: CCA_2011092614324337 Number: 201140023
Release Date: 10/7/2011
Office: ---------
UILC: 6227.00-00

From: --------------------
Sent: Monday, September 26, 2011 2:32:50 PM
To: --------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------

Subject: RE: AAR not considered in FPAA, 6229 is -----------

We make final partnership item determinations in an FPAA based only on the partnership return as filed.
So the "as reported" numbers will be the numbers on the original partnership return, not the AAR. We
need not address the AAR at all since the FPAA ("Notice of Final Partnership Administrative Adjustment")
constitutes the final administrative determination of all partnership items regardless of whether an AAR
was filed or not. As you note, an AAR petition cannot be filed if we issue an an FPAA since the FPAA
proceeding finally determines all items and all partners may participate in the FPAA proceeding to
challenge any of the adjustments..

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