Ezel / IRS Rulings / 201447036
Chief Counsel Advice 201447036 Released November 21, 2014 Advice

Extended partnership limitations period keeps at-risk recapture open

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This page covers one taxpayer's ruling from 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 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 rejected a taxpayer's argument that the assessment period for IRC § 465(e) recapture had expired. The advice stated that IRC § 6229 keeps a partner's limitations period open for partnership items and affected items for at least three years after the partnership return is filed. Regulations and Tax Court decisions treat application of the at-risk rules to a partner as an affected item. Because the minimum partnership period had been extended for all partners, the recapture assessment period remained open and the issue should be included in the settlement form.

Ruling snapshot

  • Question: Did an extension of the IRC § 6229 partnership period keep the assessment period open for IRC § 465(e) recapture?
  • Outcome: Advice given that the assessment period remained open
  • Key authorities: IRC §§ 465, 6229, and 6501; Treas. Reg. § 301.6231(a)(5)-1(c); Hambrose, Roberts, and Ginsburg

Full text (IRS public release)

ID: CCA_2014102012250801 [Third Party Communication:

UILC: 6231.05-00 Date of Communication: Month DD, YYYY]

Number: 201447036
Release Date: 11/21/2014
From:
Sent: Monday, October 20, 2014 12:25:09 PM
To:
Cc:
Bcc:
Subject: RE: Request for help regarding section 465(e)

The taxpayer is incorrect.

Section 6229 provides, as interpreted by the Tax Court and three courts of appeal, that
no partner’s section 6501 statute will expire for partnership items or affected items less
than 3 years after the partnership return has been filed. Treas. Reg 301.6231(a)(5)-1(c)
and Hambrose v. Commissioner, 99 T.C. 298 (1992) Roberts v. Commissioner, 84 T.C.
853 (1990) and Ginsburg v. Commissioner, 127 T.C. 75 (2006) all confirm that the
application of section 465 to a partner is an affected item governed by the minimum
period provided under section 6229.

Since the minimum period under section 6229 was extended for all partners, the period
for assessing section 465(e) recapture remains open. Settlement of this issue should
be included on Part II of the Form 870-LT.

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