Ezel / IRS Rulings / 201550041
Chief Counsel Advice 201550041 Released December 11, 2015 Advice

Indirect partner may receive partnership audit information

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This page covers one taxpayer's ruling from 2015, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, 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 an indirect partner may receive a Form 886A from a partnership-level audit, provided disclosure would not seriously impair federal tax administration. Under IRC § 6224(a), all partners, including indirect partners defined by IRC § 6231(a)(2)(B), may participate in the administrative proceeding and are parties to it. The partner may therefore receive the form even if some information may not ultimately affect that partner.

Ruling snapshot

  • Question: May the IRS disclose partnership audit information to an indirect partner who is a party to the proceeding?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6103(h)(4)(A), 6224(a), 6231(a)(2)(B)

Full text (IRS public release)

ID: CCA_2015111312434907 [Third Party Communication:

UILC: 6103.08-04, 6224.00-00, 6231.02- Date of Communication: Month DD, YYYY]

         00

Number: 201550041
Release Date: 12/11/2015
From:
Sent: Friday, November 13, 2015 12:43:49 PM
To:
Cc:

Bcc:
Subject: RE: Disclosure question regarding the notice partner

Hi --------,

Yes, they may be disclosed to the partner provided disclosure of the information does
not seriously impair federal tax administration (and it does not sound like it
does). Under section 6224(a), all partners (including indirect – section 6231(a)(2)(B))
have a right to participate in an administrative audit at the partnership level and all
partners are parties to the proceeding. Therefore, the indirect partner may receive the
Form 886A even if it refers to things that may not ultimately impact that specific partner
because they are a party to the proceeding. I.R.C. 6103(h)(4)(A).

Thanks,

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