Ezel / IRS Rulings / 1211013
Chief Counsel Advice 1211013 Released March 16, 2012 Advice

CCA 1211013: Partnership-item issues are determined separately for each TEFRA year

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This page covers one taxpayer's ruling from 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 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 addresses whether arguments about partnership tax credits may differ across TEFRA years. The advice states that each TEFRA year is a separate cause of action, so the IRS may make arguments in one year even if they are inconsistent with partnership reporting in another year. It treats the sale or allocation of credits as a partnership item for the relevant year when the partnership must make that determination under subtitle A. It also treats the credits and the underlying factual and legal determinations as partnership items when the credits become qualified and are claimed.

Ruling snapshot

  • Question: Are the allocation, qualification, and claiming of partnership credits partnership items for the relevant TEFRA years?
  • Outcome: Advice given.
  • Key authorities: IRC § 6231; Treas. Reg. §§ 301.6231(a)(3)-1(b) and 301.6231(a)(3)-1(c)(4)

Full text (IRS public release)

ID: CCA_2012021008454637 Number: 201211013
Release Date: 3/16/2012
Office: ----------
UILC: 6231.03-00

From: -------------------
Sent: Friday, February 10, 2012 8:46:03 AM
To: -------------------
Cc: -----------
Subject: RE: TEFRA issue

Each TEFRA year is a separate cause of action. So we are free to make all arguments in ------- even if
they are inconsistent with the partnership reporting in -------. Whether the partnership sold the credits to
be generated by partnership activities to A as a third party in -------, or agreed in that year to allocate the
credits to him as a partner, is a partnership item for ------- to the extent the partnership is required to make
that determination under subtitle A for that year. Treas. Reg. 301.6231(a)(3)-1(c)(4). It is also a
partnership item for ------- when the credits became qualified and were taken since both the credits and all
underlying factual/legal determinations for that year are partnership items under Treas. Reg.
301.6231(a)(3)-1(b).

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