Ezel / IRS Rulings / 1251017
Chief Counsel Advice 1251017 Released December 21, 2012 Advice

CCA 1251017: Tenancy by the entirety does not defeat the small-partnership exception

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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 holding a partnership interest as a tenancy by the entirety affects the small-partnership exception. The advice concluded that a tenancy by the entirety is not a pass-through person under IRC § 6231(a)(9). As a result, that ownership form does not by itself remove the partnership from the small-partnership exception. The memorandum also cited Treas. Reg. § 301.6231(a)(1)-1(a)(2) and IRC § 7701(a)(1).

Ruling snapshot

  • Question: Does a tenancy-by-the-entirety partnership interest take a partnership out of the small-partnership exception?
  • Outcome: advice given
  • Key authorities: IRC §§ 6231(a)(9) and 7701(a)(1); Treas. Reg. § 301.6231(a)(1)-1(a)(2)

Full text (IRS public release)

ID: CCA_2012101711220937 Number: 201251017
Release Date: 12/21/2012
Office: ----------
UILC: 6231.01-01

From: -------------------
Sent: Wednesday, October 17, 2012 11:22:24 AM
To: --------------------
Cc: -----------
Subject: RE: TEFRA - TBE

A tenancy by the entirety (TBE) partnership interest does not take you out of the small partnership exception because a TBE is not a pass-thru "person" with the meaning of section 6231(a)(9) and Treas. Reg. 301.6231(a)(1)-1(a)(2). See also I.R.C. 7701(a)(1).

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