Ezel / IRS Rulings / 201530018
Chief Counsel Advice 201530018 Released July 24, 2015 Advice

IRS consent to a foreign tax matters partner depends on U.S. access to records

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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 a partnership may designate a foreign tax matters partner only with the Secretary's permission. The IRS generally should withhold consent when an overseas partner has no U.S. presence through which the Service can obtain the partnership's books and records. Consent may be appropriate when the foreign partner has a U.S. officer or representative with full record access and delegated authority to extend the assessment period. Delegation Order 4-19 identifies the IRS managers authorized to approve the designation.

Ruling snapshot

  • Question: When should the IRS consent to a foreign partner serving as the tax matters partner?
  • Outcome: Advice given: consent depends on reliable U.S. access to records and authority to extend the assessment period
  • Key authorities: Delegation Order 4-19; IRC § 6231

Full text (IRS public release)

ID: CCA_2015061208222601 [Third Party Communication:

UILC: 6231.07-00 Date of Communication: Month DD, YYYY]

Number: 201530018
Release Date: 7/24/2015
From:
Sent: Friday, June 12, 2015 8:22:26 AM
To:
Cc:
Bcc:
Subject: RE: TEFRA Question

They can select a foreign TMP, but only with the permission of the
Secretary. It’s up to us whether we accept it or not. They should send in a
request for permission and, if we agree, a person in delegation order 4-19
can approve.

If the TMP is overseas and has no U.S. presence through which we can
secure partnership books and records we probably should not consent. If
the foreign partner does have a U.S. presence through an officer or
representative with full access to the books and records (and the delegated
power to extend the period for assessment) we should probably
consent. Delegation Order 4-19 governs who can consent for the Service.
(10) Authority: To select a Tax Matters Partner with respect to a
partnership, a Partner with Authority with respect to an electing large
partnership, and a Tax Matters Person for an S corporation, and to
consent to the designation of a partner who is not a United States person
as a Tax Matters Partner or Tax Matters Person.
(11) Delegated to: Appeals Team Managers; Appeals Team Case
Leaders as to their respective cases; LMSB Team Managers; and SB/SE
Group Managers.

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