Ezel / IRS Rulings / 1235018
Chief Counsel Advice 1235018 Released August 31, 2012 Advice

IRS advice on a spouse's signature on a TEFRA settlement

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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 whether compliance may accept Form 870-PT from only one spouse who is a partnership partner. The advice states that accepting the form from the signing spouse permits assessment against that spouse and converts the other spouse's items to nonpartnership items when the other spouse has no separate partnership interest. The advice explains that the Calloway rule does not apply when the nonsigning spouse owns a separate partnership interest, citing Dubin and Treas. Reg. § 301.6231(a)(12)-1. It also states that a tax matters partner's settlement binds partners the partner can bind, but not a spouse who does not sign.

Ruling snapshot

  • Question: Can a TEFRA settlement be accepted from only one spouse, and when does it bind the nonsigning spouse?
  • Outcome: Advice given, the result depends on whether the nonsigning spouse has a separate partnership interest and whether the spouse signs.
  • Key authorities: IRC §§ 6224 and 6231; Calloway v. Commissioner, 231 F.3d 106 (2d Cir. 2000); Dubin v. Commissioner, 99 T.C. 325 (1992); Treas. Reg. § 301.6231(a)(12)-1

Full text (IRS public release)

ID: CCA_2012061116100837 Number: 201235018
Release Date: 8/31/2012
Office: ----------
UILC: 6224.01-01

From: -------------------
Sent: Monday, June 11, 2012 4:10:34 PM
To: ------------------
Cc: -----------
Subject: RE: ----------------------------------------------------------

I agree that compliance has the discretion to accept a From 870-PT from only the partner spouse. This
will allow assessment against the signing spouse. It will also result in the other spouse's items converting
to nonpartnership items so that the nonsigning spouse will no longer be subject to the TEFRA procedures
under Calloway v. Commissioner, 231 F.3d 106, 107 (2nd Cir. 2000). The Callaway rule does not apply,
however, where the nonsigning spouse owns a separate interest in the partnership. In that situation the
nonsigning spouse's items do not convert under Dubin v. Commissioner, 99 T.C. 325 (1992) and the
regulation that adopt the Dubin holding for this situation. Treas. Reg. 301.6231(a)(12)-1.

The TMP's settlement can be for himself and all other partners that he can bind. His spouse would not be
covered unless she also signs.

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