CCA 201213028: FPAA and Form 870-LT extend affected-item notice periods

Plain-English summary

Chief Counsel Advice addressed the period for issuing affected-item notices of deficiency in a TEFRA matter. It said an FPAA extends that period through the 150-day petition period plus one year under IRC § 6229(d). A signed Form 870-LT extends the period for one year from the date the parties co-execute the agreement under IRC § 6229(f). The advice also said both one-year periods can be extended further at the ultimate taxable partner level using a standard Form 872 that expressly covers these items.

Ruling snapshot

• Question: How do an FPAA, a signed Form 870-LT, and Form 872 affect the period for issuing affected-item notices of deficiency?
• Outcome: Advice given
• Key authorities: IRC § 6229(d) and (f)

Full text (IRS public release)

ID: CCA_2012030808260237 Number: 201213028
Release Date: 3/30/2012
Office: ---------
UILC: 6229.00-00

From: --------------------
Sent: Thursday, March 08, 2012 8:26:11 AM
To: --------------------
Cc: ------------
Subject: RE: TEFRA Issues

The FPAA's will extend the time to issue affected item notices of deficiency for the 150 day petition period
plus one year under section 6229(d).

A signed Form 870-LT will extend the period for issuing an affected item notice of deficiency for one year
from the date we co execute the agreement under section 6229(f).

The above one year periods can be further extended at the ultimate taxable partner level (Form 1120 or
1040) using a standard Form 872 which now explicitly covers such items.