Ezel / IRS Rulings / 201343023

Foreign partner may serve as tax matters partner when no eligible domestic partner exists

Number
201343023
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Matters Partner
Topics
Procedure, penalties, and administration
Code sections
§ 6231, § 301, § 6110
Ruling dated
September 4, 2013
Publicly released
October 25, 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 addressed whether a foreign general partner could be designated as the partnership's tax matters partner. The cited regulation generally limits designation of a foreign partner when eligible domestic partners exist, unless the IRS consents. Because there were no eligible domestic partners, the limitation did not apply, and the partnership could designate either of its two foreign partners.

Ruling snapshot

  • Question: May a partnership designate a foreign partner as its tax matters partner when no eligible domestic partner exists?
  • Outcome: Advice given. The IRS concluded that the foreign-partner limitation did not apply on these facts.
  • Key authorities: Treas. Reg. § 301.6231(a)(7)-1(b)(2)

Full text (IRS public release)

ID: CCA_2013090413024801
Third Party Communication: None

UILC: 6231.07-00
Date of Communication: Not Applicable

Number: 201343023
Release Date: 10/25/2013
From:
Sent: Wednesday, September 04, 2013 1:02:49 PM
To:
Cc:
Bcc:
Subject: RE: Foreign GP as TMP

Treas. Reg. 301.6231(a)(7)-1(b)(2) prohibits the designation of a foreign partner as
TMP (unless the IRS consents) if there are any domestic partners eligible. Since there
are no eligible domestic partners, this limitation does not apply and the partnership is
free to designate either of the two foreign partners as TMP.

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