Partnership cannot elect out of BBA on a late return

Number

202312001

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Election Out for Certain Partnerships with 100 or Fewer Partners, Etc.

Topics

Procedure, penalties, and administration

Code sections

§ 6221

Ruling dated

December 14, 2022

Publicly released

March 24, 2023

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 2023, 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

IRS Chief Counsel was asked whether a delinquent partnership return could make an election out of the centralized partnership audit regime commonly called BBA. The response was no. An election out is valid only when made on a timely filed return, taking valid filing extensions into account.

Ruling snapshot

Question: Can a partnership elect out of BBA on a delinquent return?
Outcome: Advice given. No, the election requires a timely filed return.
Key authorities: IRC § 6221(b).

Full text (IRS public release)

ID: CCA_2022121407553343 [Third Party Communication:

UILC: 6221.01-00
Date of Communication: Month DD, YYYY]

Number: 202312001
Release Date: 3/24/2023
From: --------------------
Sent: Wednesday, December 14, 2022 7:55:33 AM
To: ----------------------------
Cc:
Bcc:
Subject: RE: delinquent election invalid?

Yes. An election out of BBA can only be made on a timely filed return (including extensions).

Jenni Black (she/her)
Senior Counsel
CC:PA:07
Phone: (202) 317-5216

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