CCA 201251014: CCA addresses who is automatically the tax matters partner

Plain-English summary

Chief Counsel advice addressed who becomes a partnership's tax matters partner when no valid designation has been made. The advice states that the general partner becomes the tax matters partner automatically under IRC section 6231(a)(7)(B) when that partner has the largest profits interest. Because the partnership in question had only one general partner, that partner was the tax matters partner. The advice also cites the related Treasury regulation.

Ruling snapshot

• Question: Who is the tax matters partner when no valid designation has been made?
• Outcome: Advice given
• Key authorities: IRC § 6231(a)(7)(B); Treas. Reg. § 301.6231(a)(7)-1(m)

Full text (IRS public release)

ID: CCA_2012100415222137 Number: 201251014
Release Date: 12/21/2012
Office: ----------
UILC: 6231.07-00

From: -------------------
Sent: Thursday, October 04, 2012 3:23:09 PM
To: --------------------
Cc: ----------------------------------
Subject: RE: TMP Issue

The general partner is automatically TMP by operation of law under section 6231(a)(7)(B) rather than through a designation by us or the partnership. In the absence of a valid designation there is no designation. If no designation has been made, then the general partner with the largest profits interest automatically becomes TMP under the "largest profits interest" provision of section 6231(a)(7)(B) and Treas. Reg. 301.6231(a)(7)-1(m). Since the partnership has only one general partner, it is the TMP.