Refunds follow a two-year period after a partnership case becomes final

Plain-English summary

Chief Counsel addressed the timing of a court petition involving an administrative adjustment request filed by a partnership. If the petition actually preceded the adjustment request, the court would lack jurisdiction. If the partnership filed the request first and then timely petitioned it, the IRS had two years from the date the court's decision became final to issue the refunds. The advice cited several provisions of section 6230 governing partner-level refunds and limitations periods.

Ruling snapshot

• Question: When must refunds be issued after a partnership's administrative adjustment request is litigated?
• Outcome: Advice given, subject to confirming that the petition followed the adjustment request
• Key authorities: IRC § 6230

Full text (IRS public release)

ID: CCA_2015021308535301 [Third Party Communication:

UILC: 6230.00-00
Date of Communication: Month DD, YYYY]

Number: 201510047
Release Date: 3/6/2015
From:
Sent: Friday, February 13, 2015 8:53:54 AM
To:
Cc:
Bcc:
Subject: RE: Statute question on AAR filed by the partnership that was docketed in tax court

I assume that your statement that the petition was filed 2 days before the AAR was filed
is a typo – if not, the court would lack jurisdiction.

Assuming that the AAR was timely petitioned after the AAR was filed, we have two
years from the date the decision became final to issue the refunds. I.R.C. 6230(d)(2),
(d)(4), (d) (3) and (c)(2)(B) (iii).