Ezel / IRS Rulings / 201319024

How a partnership settlement affects spouses filing jointly

Number
201319024
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Husband and Wife
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
March 29, 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 explains how a partnership settlement or conversion affects spouses who file a joint return. In a community-property state, the regulations generally treat the spouses as separate partners, but conversion by the listed spouse also converts the other spouse's partnership items when the non-settling spouse is not listed on the partnership Schedule K-1. In a non-community-property state, conversion by the spouse who owns the partnership interest converts the partnership items of the jointly filing spouse who is not a partner. The memo cites Treas. Reg. § 301.6231(a)(12)-1.

Ruling snapshot

  • Question: When does a partnership settlement or conversion affect the partnership items of a jointly filing spouse?
  • Outcome: Advice given.
  • Key authorities: IRC § 6231; Treas. Reg. § 301.6231(a)(12)-1(c) and (a)(2).

Full text (IRS public release)

ID: CCA_2013032908541001 Number: 201319024
Release Date: 5/10/2013
UILC: 6231.12-00

From:
Sent: Friday, March 29, 2013 8:54:10 AM
To:
Cc:
Bcc:
Subject: RE: Consistent Settlement- Joint Return

If the partnership interest is community property, the regulations treat the husband and wife as separate partners so that the settlement/conversion of one spouse does not automatically convert the partnership items of the other spouse- except when the non- settling spouse is not listed on the partnership return K-1. In this later case, the conversion of the only listed spouse serves to also convert the partnership items on the non- listed spouse. See Treas. Reg. 301.6231(a)(12)-1(c) and -1(a)(2).

In non-community property states the conversion of the spouse owner of the partnership interest serves to convert the partnership items of the jointly filing non-partner spouse.

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