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Chief Counsel Advice 1236029 Released September 7, 2012 Advice

CCA 1236029: Advice addresses use of Form 870-LT for partner-level issues

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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 addressed whether Part II of Form 870-LT could be used instead of Form 870PT(AD) to resolve partner-level issues. The advice states that Part II is a separate agreement executed by both parties for affected items. It can resolve partner-level defenses to a partnership-level penalty and partner-level penalties based on affected items, including at-risk or passive-loss issues. The advice concludes that Appeals may use the form to resolve all of those issues.

Ruling snapshot

  • Question: Can Part II of Form 870-LT be used to resolve partner-level penalty issues?
  • Outcome: Advice
  • Key authorities: IRC § 6224; Form 870-LT

Full text (IRS public release)

ID: CCA_2012062108383937 Number: 201236029
Release Date: 9/7/2012
Office: ----------
UILC: 6224.01-02

From: --------------------
Sent: Thursday, June 21, 2012 8:38:52 AM
To: ------------------------
Cc: -----------------------------------------------------
Subject: RE: 870PT(AD) versus 870-LT(AD)

Part II of the Form 870-LT is a separate agreement that is separately executed by both parties as to
affected items. It can be used to resolve partner-level defenses to the partnership-level penalty. These
defenses are affected items not determined at the partnership level. It can also be used to determine any
partner-level penalties based on affected items such at risk or passive loss. By using this Form appeals
can resolve all of these issues, so it is appropriate to use it in your case.

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