Ezel / IRS Rulings / 1337015
Chief Counsel Advice 1337015 Released September 13, 2013 Advice

CCA 1337015: Transferee liability for a foreign entity with no apparent U.S. connection

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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 was asked whether the IRS could assert transferee liability against a foreign entity that lacked a federal employer identification number and did not do business in the United States. The advice concludes that the IRS could not successfully assert liability on the facts provided. The exam file showed no real estate, bank accounts, investments, or other property in the United States, and no apparent connection to the country.

Ruling snapshot

  • Question: Can the IRS successfully assert transferee liability against the foreign entity?
  • Outcome: Advice given, the IRS could not successfully assert liability on the stated facts.
  • Key authorities: IRC § 6901.

Full text (IRS public release)

ID: CCA_2013072514384046
Office: -----------------------------
UILC: 6901.00-00
Number: 201337015
Release Date: 9/13/2013
From: -------------------------
Sent: Thursday, July 25, 2013 2:38:42 PM
To: -----------------
Cc:
Subject: Transferee Liability Question

You asked whether the Service could successfully assert transferee liability against
a foreign entity that lacks a federal employer identification number and does not do
business in the United States. From what you told me, the answer is no. As you
mentioned, the exam file does not reveal that the entity owns any real estate, bank
accounts, investments, or other property in the United States. Given the apparent
lack of any connection to the United States, the Service could not successfully assert
transferee liability against the entity.

Let me know if you have any other questions.

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