A TEFRA tax matters partner is the person designated on the partnership return, not in the operating agreement

Plain-English summary

This is informal Chief Counsel advice, sent as an email, answering a question about the old TEFRA partnership audit rules: who is a partnership's tax matters partner (TMP)? The advice explains that the TMP is the person designated on the partnership's tax return, not whoever is named in the operating agreement. So long as the person designated on the return is eligible to serve, meaning a member of the partnership with management control over it, under Treasury Regulations 301.6231(a)(7)-1 and -2, that person is the TMP. (TEFRA and the tax matters partner concept governed partnership audits for older tax years before being replaced by the centralized partnership audit regime.)

Ruling snapshot

• Question: Is a partnership's tax matters partner determined by the partnership return or by the operating agreement?
• Outcome: Advice: the TMP is the eligible person designated on the return
• Key authorities: IRC § 6231; Treas. Reg. § 301.6231(a)(7)-1 and -2

Full text (IRS public release)

ID: CCA_2022070607383043 [Third Party Communication:
UILC: 6231.07-00 Date of Communication: Month DD, YYYY]
Number: 202246010
Release Date: 11/18/2022
From: --------------------
Sent: Wednesday, July 6, 2022 7:38:30 AM
To: ------------------------
Cc:
Bcc:
Subject: RE: TEFRA TMP Question

A TMP is designated on the partnership return, not in the operating agreement. So long as the person designated on the return is eligible to be TMP (e.g,. they are a member of the partnership and have management control over the partnership – see 301.6231(a)(7)-1 and -2) then that person is TMP. If you have any more questions my calendar is up to date so please feel free to pick a time that is convenient for you.

Thanks,
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