Prior-year resolution may support TEFRA disclosure

Plain-English summary

Chief Counsel explained that each tax year is a separate cause of action. When the partners differ, the IRS generally requires a separate final partnership administrative adjustment for each year to avoid disclosure problems. The email nevertheless concluded that section 6103(h)(4)(B) probably permitted the disclosure because the first year's resolution conclusively established the second year's treatment.

Ruling snapshot

• Question: Can information from one TEFRA year be used when it conclusively establishes the treatment for another year?
• Outcome: Advice given, likely yes under the cited disclosure exception
• Key authorities: IRC § 6103(h)(4)(B)

Full text (IRS public release)

ID: CCA_2015010914091301 [Third Party Communication:

UILC: 6103.09-03
Date of Communication: Month DD, YYYY]

Number: 201509032
Release Date: 2/27/2015
From:
Sent: Friday, January 09, 2015 2:09:13 PM
To:
Cc:
Bcc:
Subject: RE: TEFRA/disclosure question

Each year is a separate cause of action . Because of this we require separate FPAA’s
for each year when the partners are not the same in order to avoid disclosure issues.
But you are probably O.K. under section 6103(h)(4)(B) since the year 1 resolution
conclusively establishes year 2 treatment.