CCA 201236030: Advice addresses when partnership items converted after late notice

Plain-English summary

Chief Counsel advice addressed when partnership items converted after the IRS sent partner-level notices late. The advice states that the 150-day petition period runs from the date the FPAA is issued to the TMP. Because the partner FPAAs were not sent until after that period expired and the partners made no election, their items automatically converted when the late notices were sent. The advice cites IRC § 6226 and Treas. Reg. § 301.6223(e)-2(b).

Ruling snapshot

• Question: When did the partners' items automatically convert after late partner-level notices?
• Outcome: Advice
• Key authorities: IRC §§ 6223 and 6226; Treas. Reg. § 301.6223(e)-2(b)

Full text (IRS public release)

ID: CCA_2012062114274237 Number: 201236030
Release Date: 9/7/2012
Office: ----------
UILC: 6223.04-00, 6223.04-01

From: --------------------
Sent: Thursday, June 21, 2012 2:28:02 PM
To: ------------------------------------------------------------------ Cc: ---------------------------------- Subject: RE: conversion to nonpartnership item and 1 yr date

The 150 day petition period runs from the date the FPAA is issued to the TMP. I.R.C. 6226 (its right in the statute) Since we did not send the notice partner FPAA's until after the 150 day period expired, and the partners made no election, their items automatically converted as of the date we sent them the late notice, not the date the FPAA defaulted. Treas. Reg. 301.6223(e)-2(b).