CCA 1219023: IRS advice on designating a tax matters partner on an amended return

Plain-English summary

Chief Counsel Advice addresses whether a tax matters partner designation can be made on an amended partnership return. The advice says it cannot, because that would not comply with section 6231(a)(7). If there is no new designation, the general partner with the largest profits interest generally becomes the tax matters partner by operation of law. The advice also says a generic notice under Treas. Reg. § 301.6223(a)-1 satisfies the requirement to send an FPAA to the tax matters partner even if no notice is sent to a named tax matters partner.

Ruling snapshot

• Question: Can a tax matters partner be designated on an amended return, and who receives an FPAA if there is no valid new designation?
• Outcome: Advice given
• Key authorities: IRC §§ 6223 and 6231; Treas. Reg. § 301.6223(a)-1

Full text (IRS public release)

ID: CCA_2012040414392737 Number: 201219023
Release Date: 5/11/2012
Office: ----------
UILC: 6231.07-00

From: -------------------
Sent: Wednesday, April 04, 2012 2:39:42 PM
To: ---------------------
Cc: -----------
Subject: RE: TMP designation on amended 1065; send FPAA to terminated TMP?

(1) No. A TMP designation cannot be made on an amended return since that does not comply with the
regulation under 6231(a)(7).

(2) Generally, in the absence of a new designation, the largest profits interest general partner becomes
TMP by operation of law under section 6231(a)(7)(B). No partnership or service designation need occur.

(3) In any event, a generic TMP notice under Treas. Reg. 301.6223(a)-1 satisfies our requirement to send
an FPAA to the TMP regardless of whether a notice is sent to a named TMP.