A partnership's designated individual needs no relationship to its entity partnership representative

Number

202137011

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Designation of Partnership Representative

Topics

Procedure, penalties, and administration

Code sections

§ 6223

Ruling dated

May 3, 2021

Publicly released

September 17, 2021

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 2021, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

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

This short Chief Counsel email explains who may serve as the designated individual for an entity partnership representative. The designated individual does not need any relationship with the entity serving as partnership representative. The IRS also does not need to determine whether the individual has authority under state law to bind that entity. When a partnership names an entity as its partnership representative, it must separately name an individual who alone has authority to act for the entity under Treasury Regulation § 301.6223-1.

Ruling snapshot

Question: Must the designated individual have a relationship with, or state-law authority to bind, an entity partnership representative?
Outcome: Advice given (no relationship or state-law authority is required).
Key authorities: Treas. Reg. § 301.6223-1.

Full text (IRS public release)

ID: CCA_2021050308435743
UILC: 6223B.00-00

Number: 202137011
Release Date: 9/17/2021
From: --------------------
Sent: Monday, May 3, 2021 8:43:57 AM
To: ---------------------------------------------------- Cc: Bcc: Subject: RE: 872-M question

Not a problem at all. The designated individual (DI) does not need to have any relationship to the partnership representative (PR) whatsoever. We do not need to look to see whether the DI has state law authority to bind the PR. If the partnership designates an entity-PR, the partnership must also name a DI who will have the sole authority to act for the entity-PR under 301.6223-1.

Please let me know if you have any questions.

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