Ezel / IRS Rulings / 201509036
Chief Counsel Advice 201509036 Released February 27, 2015 Advice

Partnership-level examination required for barred-year NOL item

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This page covers one taxpayer's ruling from 2015, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

Currency note: this determination was released in 2015
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 addressed a partner's net operating loss carryforward that arose from a TEFRA partnership or affected item in an earlier year. Although the assessment limitations period had expired for that earlier year, the IRS still needed to examine the TEFRA partnership for the barred year before disallowing the carryforward. The email identified the cited Fears case as involving a TEFRA partnership, but the public text does not reproduce the citation or further analysis.

Ruling snapshot

  • Question: Can the IRS disallow the carryforward without examining the TEFRA partnership for the barred year?
  • Outcome: Advice given, the partnership-level examination is required
  • Key authorities: IRC §§ 6221 and 6229

Full text (IRS public release)

ID: CCA-09022014-14 [Third Party Communication:

UILC: 6221.00-00, 6229.00-00 Date of Communication: Month DD, YYYY]

Number: 201509036
Release Date: 2/27/2015
From: --------------------
Sent: Tuesday, September 02, 2014 8:48 AM
To: ---------------------
Cc: --------------------
Bcc:
Subject: FW: Form Returned: Downloads_GetFile.aspx

---------,

Even though the statute of limitations for assessing tax has expired for the year in question, you will
need to examine the TEFRA partnership for the barred year before you can disallow a partner’s net
operating loss carryforward that resulted from a partnership or affected item in the barred year. The
Fears case that is cited below involved a TEFRA partnership. Please call me if you have any questions.

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