Non-TEFRA partners had to extend their own assessment periods

Plain-English summary

Chief Counsel advised that no extension was needed from a partnership entity when the IRS was not assessing tax against the entity itself. Because the partnership was outside TEFRA, each partner could extend only that partner’s section 6501 assessment period by signing an individual Form 872. A Form 872-P signed for the partnership would have no effect because a non-TEFRA partnership has no tax matters partner and cannot extend the partners’ assessment periods.

Ruling snapshot

• Question: Who could extend the assessment period for partners in a non-TEFRA partnership?
• Outcome: Advice that each partner had to use an individual Form 872
• Key authorities: IRC §§ 6229 and 6501

Full text (IRS public release)

ID: CCA_2015062410090101 [Third Party Communication:

UILC: 6229.02-00 Date of Communication: Month DD, YYYY]

Number: 201531017
Release Date: 7/31/2015
From:
Sent: Wednesday, June 24, 2015 10:09:01 AM
To:
Cc:
Bcc:
Subject: RE: Form 872

If we are not assessing any tax against the entity we would need no extension from the
entity itself. This is true regardless of whether TEFRA applies or not.

Since this is non-TEFRA only the partners can extend their own section 6501 period
using individual Forms 872. If it was TEFRA, the TMP would have the power to extend
the partners’ section 6501 period with respect to partnership items using Form 872-
P. That form is a nullity for a non-TEFRA partnership since there is no TMP for a non-
TEFRA partnership and the partnership cannot extend the period for assessing the
partners.