Ezel / IRS Rulings / 201337015

CCA 201337015: Transferee liability for a foreign entity with no apparent U.S. connection

Number
201337015
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Transferred Assets (See 9113.00-00)
Topics
Procedure, penalties, and administration
Code sections
§ 6901
Ruling dated
July 25, 2013
Publicly released
September 13, 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 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.

--------

---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace