CCA 1315024: 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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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.