CCA 201211013: Partnership-item issues are determined separately for each TEFRA year

Number

201211013

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Partnership Item

Topics

Procedure, penalties, and administration

Code sections

§ 6231

Ruling dated

February 10, 2012

Publicly released

March 16, 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.

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 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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