Ezel / IRS Rulings / 201319022

Spousal partnership-item conversion can affect consistent-settlement rights

Number
201319022
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Canada
Topics
Procedure, penalties, and administration
Code sections
§ 6224, § 6231
Ruling dated
March 21, 2013
Publicly released
May 10, 2013
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2013, 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 2013
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 is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, 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 addresses whether a non-partner spouse may request consistent settlement of partnership items after the other spouse settles. If the non-partner spouse's partnership items converted because of the settlement, those items are no longer partnership items for that spouse, so the spouse cannot request consistent settlement on that basis. If the items did not convert under the Dubin and Calloway analysis adopted by the cited regulation, the non-settling spouse may request consistent settlement if the other criteria are met. Continuing marital status, by itself, should not affect those rights.

Ruling snapshot

  • Question: How does spousal conversion of partnership items affect a non-partner spouse's consistent-settlement rights?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6224 and 6231; Treas. Reg. §§ 301.6224(c)-3(b)(ii) and 301.6231(a)(12)-1(c); Dubin and Calloway analysis.

Full text (IRS public release)

ID: CCA_2013032115421301 Number: 201319022
Release Date: 5/10/2013
UILC: 6224.02-00

From:
Sent: Thursday, March 21, 2013 3:42:13 PM
To:
Cc:
Bcc:
Subject: RE: TEFRA Question -

You may not be characterizing the FSA correctly. If the non-partner spouse's partnership items converted due to the settlement of the other spouse, then the non-partner spouse is not entitled to consistent settlement of partnership items because the items are no longer partnership items for the requesting non-partner spouse. See Treas. Reg. 301.6224(c)- 3(b)(ii)(items must be partnership items of the requesting partner). If the items did not convert under the Dubin and Calloway analysis, which has been adopted by Treas. Reg. 301.6231(a)(12)-1(c), then the non-settling spouse would be entitled to request consistent settlement of partnership items (assuming all other criteria are met).

Other than the above conversion issue, continuing marital status should not affect consistent settlement rights.

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