Ezel / IRS Rulings / 1319026
Chief Counsel Advice 1319026 Released May 10, 2013 Advice

Federal tax partnership status depends on joining capital or services for profit

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This page covers one taxpayer's ruling from 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 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 addresses whether state law determines whether a person is a partner for federal tax purposes. The advice states that state law is irrelevant under the Supreme Court decisions cited in the memo, Culbertson and Tower. For federal tax purposes, a person is a partner only if the person joins capital or services with another in a trade or business for profit.

Ruling snapshot

  • Question: What determines whether a person is a partner for federal tax purposes?
  • Outcome: Advice given.
  • Key authorities: IRC § 6231; Culbertson and Tower.

Full text (IRS public release)

ID: CCA_2013040409530201 Number: 201319026
Release Date: 5/10/2013
UILC: 6231.02-00

From:
Sent: Thursday, April 04, 2013 9:53:02 AM
To:
Cc:
Bcc:
Subject: RE: Question regarding Forms 872

State law is irrelevant under the Supreme Court cases Culbertson and Tower. For
federal tax purposes you are only a partner if you join capital or services together in a
trade or business for profit.

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