Ezel / IRS Rulings / 201906007

Partnership AAR period may close before assessment period

Number
201906007
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Administrative Adjustments Requests; Period of Limitations for Making Assessments
Topics
Procedure, penalties, and administration
Code sections
§ 6227, § 6229, § 6501
Ruling dated
February 7, 2019
Publicly released
February 8, 2019
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2019, 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 2019
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 is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, 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 explained that the section 6229 period can close while a partner's section 6501 assessment period remains open. Section 6229 supplies a minimum assessment period for partners, not a maximum period. Under section 6227, a partner generally must file an administrative adjustment request within three years after the partnership return was filed or due, whichever is later, with an extension tied to an extended section 6229 period. As a result, the IRS might still have time to issue a final partnership administrative adjustment for a partner even though the partner's time to file an administrative adjustment request has expired.

Ruling snapshot

  • Question: Can the period for a partner to file an administrative adjustment request close while the assessment period remains open?
  • Outcome: Advice given that the AAR period may close first.
  • Key authorities: IRC §§ 6227, 6229, and 6501.

Full text (IRS public release)

ID: CCA_2019020708061743
UILC: 6229.00-00, 6227.00-00

Number: 201906007
Release Date: 2/8/2019
From:
Sent: Thursday, February 07, 2019 8:06:17 AM
To:
Cc:
Bcc:
Subject: RE: question re 702 regulations

The 6229 period can be closed even though the 6501 period is open. Section 6229 is a MINUMUM period under which no partner’s 6501 period expires, not a maximum. An AAR cannot be filed if the 6229 period has closed, even if the partner has an open 6501 period. See 6227(a)-(b). Under 6227, a partner AAR can be filed within 3 years of the partnership’s return being filed (or filing due date, if later). This period is extended if the 6229 period is extended such that a partner can file an AAR up until the end of the 6229 period plus 6 months (provided no FPAA has been issued).

Therefore, it could be the case that the time to issue an FPAA with respect to a partner is open (because the partner has an open 6501 period) but the period to file an AAR is closed.

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