Ezel / IRS Rulings / 1149030
Chief Counsel Advice 1149030 Released December 9, 2011 Advice

TEFRA proceeding determines partnership-level self-employment income

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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 what a TEFRA partnership proceeding should determine about self-employment income. It stated that the partnership level determines the allocation and gross amount of trade or business income potentially subject to self-employment tax. The ultimate taxability is determined after the partnership proceeding by aggregating each partner's self-employment income.

Ruling snapshot

  • Question: What self-employment income should be determined in a TEFRA partnership proceeding?
  • Outcome: advice given
  • Key authorities: IRC § 6231; Olsen-Smith v. Commissioner, T.C. Memo. 2005-174.

Full text (IRS public release)

ID: CCA_2011120208294737 Number: 201149030
Release Date: 12/9/2011
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Friday, December 02, 2011 8:30:02 AM
To: -------------------
Cc: ------------------------------------------------
Subject: RE: TEFRA and Self-Employment Tax

Under Olsen-Smith v. Commissioner, T.C. Memo. 2005-174, the allocation and gross amount of trade or
business income potentially subject to self-employment tax is determined at the partnership level but not
its ultimate taxability which would be determined following the partnership proceeding by aggregating all
self-employment income. Thus, in your TEFRA partnership proceeding you should determine the amount
of self-employment income allocable to each partner.

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