Ezel / IRS Rulings / 1235016
Chief Counsel Advice 1235016 Released August 31, 2012 Advice

IRS advice on when a TMP settlement binds small-interest partners

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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 the scope of a tax matters partner's Form 870-P settlement. It states that the form binds partners with less than a one percent interest only in a partnership with more than 100 partners and only when the agreement specifically says it binds those partners. If the agreement binds such a partner, it also binds that partner's jointly filing spouse.

Ruling snapshot

  • Question: When does a TMP Form 870-P bind partners with less than a one percent partnership interest?
  • Outcome: Advice given, only when the partnership and agreement satisfy the stated conditions.
  • Key authorities: IRC § 6224

Full text (IRS public release)

ID: CCA_2012060711252637 Number: 201235016
Release Date: 8/31/2012
Office: ----------
UILC: 6224.01-05

From: -------------------
Sent: Thursday, June 07, 2012 11:25:38 AM
To: ------------------
Cc: --------------------------------
Subject: RE: non-notice partners

A TMP 870-P only binds partners with less than a one percent interest in a partnership with more than
100 partners and only binds them if language is added to the agreement specifically stating that it binds
such partners. If it binds such a partner, it also binds that partner's jointly filing spouse.

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