Similar Rules in Certain Cases

ID: CCA_2009071308575237 Number: 200933031
Release Date: 8/14/2009
Office: ---
UILC: 6233.02-00
From: ---
Sent: Monday, July 13, 2009 8:57:53 AM
To: ---
Cc: ---
Subject: RE: Your Thoughts/Insight
If a partnership return was filed, and the small partnership exception to TEFRA would not apply because one of the several partners was a pass-thru entity (or the entity elected into the TEFRA procedures in accordance with Treas. Reg. 301.6231(a)(1)-1(b))then the TEFRA procedures are mandatory to determine that no partnership existed. I.R.C. 6233(b); Frazell v. Commissioner, 88 T.C. 1405 (1987);
RJT v. Commissioner (7th Circuit opinion issued last year); Andantech v. Commissioner (D.C. Circuit).
See also Petaluma v. Commissioner (recent Tax Court opinion).