Exception for Small Partnerships

ID:
Office:
UILC:
CCA_2009032016014437
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6231.01-01
Number: 200923040
Release Date: 6/5/2009
From: ---
Sent: Friday, March 20, 2009 4:01:46 PM
To: ---
Cc: ---
Subject: RE: TEFRA determination
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--- (--- is a good contact). A partnership with 3 C corps would not be subject to TEFRA absent an election out of the small partnership exception under Treas. Reg. 301.6231(a)(1)-1(b)(2).
Section 6231(g) says that reasonable reliance on the partnership return to determine that TEFRA does not apply will be dispositive. That reliance would be determined at the beginning of the audit rather than at the end. See Harrell v. Commissioner, 91 T.C. 242 (1988).
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