Which address to use for a partnership representative's audit notice, and how to change it

Plain-English summary

Under the centralized partnership audit rules from the Bipartisan Budget Act of 2015, a partnership names a "partnership representative" who receives IRS audit notices on the partnership's behalf, and the IRS sends a Notice of Administrative Proceeding (Letter 5893 to the partnership, Letter 5893-A to the representative). This informal email advice from Chief Counsel answers two follow-up questions from an examiner. First, the representative had a foreign address on file (its last known address from its most recent tax return), but the IRS had mailed Letter 5893-A to the U.S. address the partnership had supplied for the representative. Chief Counsel advised that mailing to the last known foreign address would have been sufficient, and that the mailing to the U.S. address may also have been sufficient (it was not returned undeliverable and the representative had not asked for a different address), but recommended, out of caution, confirming the correct address with the representative. Second, Chief Counsel advised that a partnership representative can use Form 8822, and a partnership can use Form 8822-B, to give the "clear and concise notification" needed to change the address the IRS uses. This is internal advice to the examiner, not a ruling.

Ruling snapshot

• Question: For a partnership audit under the BBA regime, was the Letter 5893-A mailed to the right address for the partnership representative, and how does the representative or partnership notify the IRS of a different address?
• Outcome: advice given
• Key authorities: Treas. Reg. §§ 301.6231-1(c), 301.6212-2(a); Rev. Proc. 2010-16; Forms 8822 and 8822-B; IRM 4.31.9.8.1

Full text (IRS public release)

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ID: CCA_2024041113135910
UILC: 6223B.00-00, 6231B.00-
00
Number: 202501009
Release Date: 1/3/2025
From: ------------------
Sent: Thursday, April 11, 2024 1:13:59 PM
To: ------------
Cc: ------------------------------------------------------------------------------------
Bcc:
Subject: RE: Substantial Presence Test

Hi Annie,

We previously provided the below e-mail advice with regard to determining whether to
treat the designation by a partnership (“PRS”) of a partnership representative (“PR”) for
a taxable year (“TY”) as in effect, and, if it is, identifying the address to be used to mail
the copy of the notice of administrative proceeding (“NAP”) for PR. You followed up
with some additional information and a few additional questions.

Facts
We understand that (1) you have been in communication with PR through a
representative duly authorized to represent PR in connection with PR’s role as PRS
(“POA”), (2) you previously mailed the copy of the NAP for PR to the PRS street
address in the United States (“U.S. address”) provided by PRS for PR in connection
with the designation of PR as PRS partnership representative, and it was not returned
as undeliverable, and (3) neither PR nor POA has requested that a copy of the NAP
sent to PR be sent to PR’s address in the foreign country (“FC”).

Issues
You have asked:
1. Given that the original Letter 5893-A was sent to PRS’s U.S. address, should a copy of
the Letter 5893-A be sent to the address in FC that is reflected on PR’s most recently
filed and properly processed Federal tax return and accordingly in the Service’s records
as PR’s last known address?
2. Following up on the advice in response to Question 2 in the previous advice, how does a
partnership subject to the centralized partnership audit regime enacted by the Bipartisan
Budget Act of 2015, Public Law 114-74 (BBA), or a partnership representative of such a
partnership, currently give a clear and concise notification of a different address?

Summary of Conclusions
Based on the analysis below:
1. The original Letter 5893-A would have been sufficient if sent to the address in FC that is
reflected on PR’s most recently filed and properly processed Federal tax return and
 2

  accordingly in the Service’s records as PR’s last known address. Although the mailing of
  the original Letter 5893-A to the U.S. address provided for PR may have been sufficient,
  we recommend, out of an abundance of caution, confirming with PR the appropriate
  address to use for correspondence with the PR.

2. The Form 8822 or Form 8822-A, as applicable, may be used by PR and/or PRS to give
   clear and concise notification of a different address.

Analysis

1. Given that the original Letter 5893-A was sent to PRS’s U.S. address, should a copy of
   the Letter 5893-A be sent to the address in FC that is reflected on PR’s most recently
   filed and properly processed Federal tax return and accordingly in the Service’s records
   as PR’s last known address?

The previous advice answered the question, “what address should be used to mail the
copy of the NAP for the TY to PR?” The advice referred to mailing the “the copy of the
NAP for TY to PR” to distinguish it from the copy of the NAP required to be sent to PRS.
The previous advice indicated that, under Treas. Reg. §301.6231-1(c), the NAP would
be sufficient if mailed to the address in FC that is reflected on PR’s most recently filed
and properly processed Federal tax return and accordingly in the Service’s records as
PR’s last known address. We understand that the Letter 5893 is used for NAPs sent to
partnerships and the Letter 5893-A is used for NAPs to partnership representatives.
Accordingly, the reference to mailing the “copy of the NAP … to PR” was to mailing the
original Letter 5893-A to PR’s last known address, not a second copy. Based on the
facts as we understood them in the previous advice, there was no need for a second
copy of the Letter 5893-A to be mailed.

We now understand, however, that the original Letter 5893-A was mailed to PRS’s U.S.
address, rather than PR’s last known address. Treas. Reg. §301.6231-1(c) only
indicates that the Letter 5893-A would be sufficient if mailed to PR’s last known address
and does not indicate that it would not be sufficient if mailed to the U.S. address
provided by PRS for PR in connection with the designation of PR as PRS partnership
representative. Accordingly, the mailing of the original Letter 5893-A to the U.S. address
provided for PR may have been sufficient. In fact, we understand that the original Letter
5893-A was not returned as undeliverable and that you have been in contact with PR,
and PR has not provided an alternative address for the purpose of mailing a copy of the
Letter 5893-A. Accordingly, the procedures in IRM 4.31.9.8.1(3) for mailing a copy to an
address of convenience do not clearly apply. Nevertheless, we recommend, out of an
abundance of caution, that you contact PR and request that PR confirm the appropriate
address to use for correspondence. If PR were to provide written confirmation that
PRS’s U.S. address should be used for PRS-related correspondence, using such
address would be sufficient, and no second copy of the Letter 5893-A would need to be
mailed. If PR were to provide an address of convenience, it could be used to mail a
second copy of the Letter 5893-A and future correspondence to PR.

2. Following up on the advice in response to Question 2 in the previous advice, how does a
   partnership subject to the centralized partnership audit regime enacted by the Bipartisan
   Budget Act of 2015, Public Law 114-74 (BBA), or a partnership representative of such a
   partnership currently give a clear and concise notification of a different address?
    3

Treas. Reg. §301.6212-2(a) refers to procedures setting forth what constitutes clear and
concise notification of a different address. Section 5.04 of Revenue Procedure 2010-16
sets forth procedures and indicates that Form 8822 can be used to provide clear and
concise notification of a change of address. Although section 6.01 indicates that it does
not apply to the notice requirements under sections 6221 through 6234, it is clear from
the publication date of the revenue procedure and the scope of the reference that its
limitation relates to those sections as in effect before amendment by BBA. The
instructions to Form 8822, Change of Address, indicate that it can be used to change a
home mailing address. The instructions to Form 8822-B, Change of Address or
Responsible Party – Business, provide that it can be used to change a business mailing
address, business location, or the identity of your responsible party. Accordingly, an
individual partnership representative, like PR, could file Form 8822 to provide clear and
concise notification of a different address from their last known address. And a
partnership, like PRS, could file Form 8822-B to provide clear and concise notification of
an address for the partnership different from their last known address.

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