Ezel / IRS Rulings / 201206017

CCA 201206017: Gain from a partnership-interest sale during a TEFRA proceeding

Number
201206017
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Affected item during a concurrent TEFRA proceeding
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
January 19, 2012
Publicly released
February 10, 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

Counsel asked how to handle gain from the sale of a partnership interest when a TEFRA proceeding for the sale year was already underway. The memorandum advises that including the gain in the partner's statutory notice during the concurrent TEFRA proceeding would require dismissal of the issue from the statutory-notice proceeding as a premature affected item. It cites GAF v. Commissioner and a contemporaneous Tax Court decision involving Bausch & Lomb on the same issue.

Ruling snapshot

  • Question: Can gain from the sale of a partnership interest be included in a partner's statutory notice while a concurrent TEFRA proceeding covers the sale year?
  • Outcome: Advice given.
  • Key authorities: IRC § 6231; GAF v. Commissioner, 114 T.C. 519; Bausch & Lomb v. Commissioner.

Full text (IRS public release)

ID: CCA_2012011910480337 Number: 201206017
Release Date: 2/10/2012
Office: ---------
UILC: 6231.05-00

From: --------------------
Sent: Thursday, January 19, 2012 10:48:11 AM
To: --------------------
Cc: ------------
Subject: RE: Request for Advice

If you include gain from the sale of a partnership interest in the partner's stat notice while a concurrent
TEFRA proceeding is going on for the sale year, we would have to dismiss the issue from the stat notice
proceeding as a premature affected item under GAF v. Commissioner, 114 T.C. 519. See also Bausch &
Lomb v. Commissioner issued by the Tax Court this week on the same issue.

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