Ezel / IRS Rulings / 1328033
Chief Counsel Advice 1328033 Released July 12, 2013 Advice

CCA 1328033: When an examination notice may be issued to partnership partners

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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 two separate questions about a notice of beginning of administrative proceeding, or NBAP, and a partnership examination. The advice states that the statutory requirement for an NBAP is that it be issued to partners at least 120 days before the final partnership administrative adjustment is issued to the tax matters partner. Issuing the NBAP does not have to coincide with the start of an examination, although it triggers notice obligations for the tax matters partner. Separately, the one-examination rule for a taxpayer’s books and records is a facts-and-circumstances inquiry under IRC § 7605(b).

Ruling snapshot

  • Question: Must an NBAP be issued only when an examination of partnership books and records begins?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6223, 7605; Treas. Reg. §§ 301.6223(a)-2(a), 301.6223(g)-1.

Full text (IRS public release)

ID: CCA_2013062816210101 Third Party Communication: None

UILC: 6223.00-00 Date of Communication: Not Applicable

Number: 201328033
Release Date: 7/12/2013
From:
Sent: Friday, June 28, 2013 4:21:02 PM
To:
Cc:
Bcc:
Subject: RE: What Constitutes an Examination?

There are really two separate issues:

(1) the only statutory requirement for the issuance of an NBAP is that it be issued to the
partners at least 120 days before issuance of the FPAA to the TMP. I.R.C.
6223(d)(1). There is no statutory or regulatory requirement that ties the issuance of this
notice to the actual beginning of an examination of the partnership books and
records. But the issuance of the NBAP does trigger an obligation on the part of the TMP
to notify other partners of an examination. See Treas. Reg. 301.6223(g)-1 and
301.6223(a)-2(a).

(2) Section 7605(b) on the other hand requires that there shall be only one examination
of a taxpayer’s books and records unless the taxpayer requests or the Service, after
investigation, gives the taxpayer notice that a second examination is required. When an
examination of books and records begins is a facts and circumstances inquiry.

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