A TEFRA proceeding may affect partners with open individual statutes

Plain-English summary

Chief Counsel Advice addresses a TEFRA partnership proceeding where some partners' individual statutes of limitations remain open. The advice states that the IRS can conduct a TEFRA proceeding affecting only those partners, even if the partnership-level statute is not being tracked in the expected way. It also states that partners can extend their own statutes with regular Forms 872, without a TMP consent extending the statute for them.

Ruling snapshot

• Question: Can the IRS open a TEFRA proceeding that affects only partners with open individual statutes?
• Outcome: Advice given.
• Key authorities: IRC §§ 6229 and 6501; Form 872.

Full text (IRS public release)

ID: CCA_2013041914532301 Number: 201319029
Release Date: 5/10/2013
UILC: 6229.02-00

From:
Sent: Friday, April 19, 2013 2:53:23 PM
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Subject: RE: TEFRA partnership

If any partner's section 6501 statute is open, we can conduct a TEFRA proceeding that will only affect those partners. I am not an expert in the computer codes you use to track the statutes. But I understand that the alpha code may mean that the statute is not being tracked at the partnership level, i.e., no TMP consent was executed. But partners can extend the statute for themselves with a regular Form 872, we don't need the TMP to extend the statute for them. So we can open a TEFRA proceeding that will affect these partners that have their own Forms 872.