Ezel / IRS Rulings / 201419014

Partnership items must be resolved before assessment

Number
201419014
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Assessments Made Only After Partnership Level Proceedings Are Completed
Topics
Procedure, penalties, and administration
Code sections
§ 6201, § 6221, § 6225
Ruling dated
April 24, 2014
Publicly released
May 9, 2014
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 2014, 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 2014
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 advised that a partnership item claimed on a partner's return could be assessed after the item was disallowed in a partnership-level FPAA. Sections 6221 and 6225 require partnership items to be determined through partnership-level proceedings before assessment. Once that partnership-level determination occurred, § 6201 authorized the assessment. It did not matter which return the partner used to claim the redacted partnership item.

Ruling snapshot

  • Question: May the IRS assess a partnership item claimed by a partner after the item is disallowed through partnership-level proceedings?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6201, 6221, and 6225

Full text (IRS public release)

ID: CCA_2014042409285901 [Third Party Communication:

UILC: 6225.00-00
Date of Communication: Month DD, YYYY]

Number: 201419014
Release Date: 5/9/2014
From:
Sent: Thursday, April 24, 2014 9:28:59 AM
To:
Cc:
Bcc:
Subject: RE: TEFRA carryforwards

Sections 6221 requires a partnership item to be determined at the partnership level. Section 6201 and 6225 say we can assess the partnership item after it is determined through an FPAA. The ------- partnership item that was claimed on the partner return for ------- was disallowed in the ------- FPAA. So we can assess. Seems pretty straight forward. The analysis is scant for that reason. It doesn’t matter which return the partner claims the ------- partnership item on. It still has to be determined at the partnership level before we can assess it.

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