CCA 201315024: Section 6229 extends, but does not shorten, the assessment period

Plain-English summary

Chief Counsel advice explains the relationship between the TEFRA partnership audit rules and the general assessment limitation period. The memo states that section 6501(a) supplies the period for assessing tax, including tax attributable to partnership and affected items. Section 6229 provides a minimum period for each partner's assessment period, measured from the partnership return filing date or its due date. The advice concludes that section 6229 operates only to extend a partner's section 6501 period. It does not shorten an otherwise applicable assessment period.

Ruling snapshot

• Question: Does section 6229 shorten a partner's otherwise applicable section 6501 assessment period?
• Outcome: Advice given, section 6229 extends but does not shorten that period.
• Key authorities: IRC §§ 6221 through 6234, 6229(a), 6501(a), and 6501(n).

Full text (IRS public release)

ID: CCA_2013030811172944 Number: 201315024
Release Date: 4/12/2013
Office: -----------------------------
UILC: 6229.00-00

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Sent: Friday, March 08, 2013 11:17:34 AM
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Cc:
Subject: FW: Boilerplate

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Sent: Friday, March 08, 2013 10:21 AM
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Please forward this to the field before our phone call.

Sections 6221 through 6234 provide for unified partnership audit and litigation procedures (the TEFRA partnership procedures). Section 6501(a) provides the period of limitations for assessing any tax imposed by Title 26 of the United States Code, including tax attributable to partnership and affected items. See Bufferd v. Commissioner, 506 U.S. 523, 527 (1993). This period runs from the filing date of an actual tax return rather than from the filing date of a pass-through entity information return [such as a partnership return]. Id. As referenced in section 6501(n), section 6229 merely extends each partner's section 6501 period. Section 6229(a) provides that each partner’s section 6501 assessment period for tax attributable to partnership and affected items shall not expire before the date that is three years after the later of the date on which the partnership return for the taxable year was filed, or the last day for filing the return for that year (determined without regard to extensions). Rhone-Poulenc Surfactants & Specialties, L.P. v. Commissioner, 114 T.C. 533, 542-43 (2000); Curr- Spec Partners, L.P. v. Commissioner, 579 F.3d 391, 396-97 (5th Cir. 2009); AD Global Fund, LLC v. United States, 481 F.3d 1351, 1354-55 (Fed. Cir. 2007); Andantech L.L.C. v. Commissioner, 331 F.3d 972, 976-77 (D.C. Cir. 2003). Thus, section 6229 operates only to extend a partner’s section 6501 period. Id. It does not shorten the partners' otherwise applicable period for assessment.