CCA 201213027: TEFRA proceeding notices generally go to partners for the year at issue

Plain-English summary

Chief Counsel Advice addressed who should receive notice at the beginning of a TEFRA partnership proceeding. It said IRC § 6223(c) generally limits notice to the partners for the tax year at issue because the proceeding is analogous to a class action involving those partners for that year. The TEFRA entity and its successor generally are not parties to the proceeding under the cited authorities. The advice therefore concluded that notice should go to the partners for the year at issue and the tax matters partner for that year.

Ruling snapshot

• Question: Who should receive notice of the beginning of a TEFRA partnership proceeding?
• Outcome: Advice given
• Key authorities: IRC §§ 6223(c), 6226(c), and 6226(d); Chef's Choice v. Commissioner, 95 T.C. 388

Full text (IRS public release)

ID: CCA_2012030514235337 Number: 201213027
Release Date: 3/30/2012
Office: ---------
UILC: 6223.00-00

From: --------------------
Sent: Monday, March 05, 2012 2:24:01 PM
To: --------------------
Cc: ------------
Subject: RE: TEFRA Proceedings

Section 6223(c) specifies who must be notified of the TEFRA proceedings. Notice is generally limited to the partners for the year in issue since a TEFRA proceeding is analogous to a class action tax proceeding for only the partners for that year. See Chef's Choice v. Commissioner, 95 T.C. 388. Thus, neither the TEFRA entity itself, nor its successor entity is generally a party to the TEFRA proceeding. See I.R.C. 6226(c) and (d). So only the partners for the year in issue and the TMP for that year should be sent notice of the beginning of the partnership proceeding.