Partnership notices may go to disregarded entity's owner

Plain-English summary

Chief Counsel explained which name and address the IRS should use for partnership notices under IRC § 6223(c). The IRS generally uses the information shown on the partnership return, including the Schedule K-1, unless it receives updated information under the regulations. If a disregarded entity is listed on the K-1, the IRS may instead send notices to that entity's owner. That alternative requires the information to have been updated by either the partners or the IRS under the applicable rules.

Ruling snapshot

• Question: May the IRS send partnership notices to the owner of a disregarded entity listed on a Schedule K-1?
• Outcome: Advice given that it may do so when the information is properly updated
• Key authorities: IRC § 6223(c), including § 6223(c)(3)

Full text (IRS public release)

ID: CCA_2014121512083601
[Third Party Communication:

UILC: 6223.02-00
Date of Communication: Month DD, YYYY]

Number: 201502012
Release Date: 1/9/2015
From:
Sent: Monday, December 15, 2014 12:08:36 PM
To:
Cc:
Bcc:
Subject: RE: IRM 4.31.3.3.2.3

Generally correct. Section 6223(c) provides that we are to use the name and address on the partnership return (i.e., the K-1) unless updated information is provided in accordance with the regulations. Even if the DE is listed on a k-1 section 6223(c)(3) allows us to issue the notices to the owner of the DE instead (“in lieu of”) if the information is updated under the regs by either the partners or the Service.