Ezel / IRS Rulings / 201510046
Chief Counsel Advice 201510046 Released March 6, 2015 Advice

Audit results do not change whether TEFRA procedures apply

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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 advised that TEFRA partnership procedures would still likely govern the audit in question. Whether an audit is subject to TEFRA is determined at the beginning of the examination based on the partnership return. Later audit findings do not change that classification. The email relied on section 6231(g) and three cited judicial decisions.

Ruling snapshot

  • Question: Can the results of a partnership audit change the initial determination that TEFRA procedures apply?
  • Outcome: Advice given, TEFRA would still likely apply
  • Key authorities: IRC § 6231(g); Harrell v. Commissioner; Nehrlich v. Commissioner; Doe v. Commissioner

Full text (IRS public release)

ID: CCA_2015012312283801 [Third Party Communication:

UILC: 6231.01-01 Date of Communication: Month DD, YYYY]

Number: 201510046
Release Date: 3/6/2015
From:
Sent: Friday, January 23, 2015 12:28:38 PM
To:
Cc:
Bcc:
Subject: RE: Guaranteed Payments

TEFRA would still likely apply. The TEFRA/non-TEFRA determination is made at the
beginning of the audit and does not change based on the audit results. I.R.C. 6231(g)
(reliance on partnership return to determine if TEFRA procedures apply); Harrell v.
Commissioner, 91 T.C. 242 (1988); Nehrlich v. Commissioner, 2009 WL 1284067 (9th
Cir. 2009); Doe v. Commissioner, 116 F.3d 1489 (10th Cir. 1997).

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