Ezel / IRS Rulings / 201202023

CCA 201202023: CCA addresses partner-level affected items

Number
201202023
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Treatment Determined At Partnership Level
Topics
Procedure, penalties, and administration
Code sections
§ 6221
Ruling dated
December 14, 2011
Publicly released
January 13, 2012
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 2012, 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 2012
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 a partner-level audit involving affected items, including a partner's worthlessness loss. The advice states that the Service need not open a TEFRA proceeding or keep the statute open at the partnership level to determine those items, but the partner-level audit remains bound by how the partnership reported its items in its books and records. The memorandum also states that information may be obtained directly from the partner or from the partnership.

Ruling snapshot

  • Question: What procedures apply when the Service determines a partner-level affected item?
  • Outcome: Advice given
  • Key authorities: IRC § 6221; Roberts v. Commissioner, 94 T.C. 853

Full text (IRS public release)

ID: CCA_2011121411441037 Number: 201202023
Release Date: 1/13/2012
Office: ----------
UILC: 6221.00-00

From: -------------------
Sent: Wednesday, December 14, 2011 11:44:29 AM
To: -----------------
Cc: -----------
Subject: RE: Statute Extension Question

You don't need to open a TEFRA proceeding or keep the statute open at the partnership level in order to determine a partner's affected items such as the partner-level worthlessness loss. You only need to get a Form 872 from the partner (current version that also relates to affected items). For the purposes of the partner-level audit, however, you will be bound by how the partnership reported its items and reflected them in its books and records. See Roberts v. Commissioner, 94 T.C. 853 at 860. You can solicit the information directly from the partner, or from the partnership for purposes of the partner-level audit.

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