Effect of Failure to Notify

ID:
Office:
UILC:
CCA_2010011108472954
---
6222.03-00
Number: 201005040
Release Date: 2/5/2010
From: ---
Sent: Monday, January 11, 2010 8:47:31 AM
To: ---
Cc:
Subject: RE: BMF Document Matching Flow Through Impact
1. No. See March 29, 2005 Chief Counsel Advisory, 2005 WL 1060955.
2. Generally, no. If the partner has, pursuant to Treas. Reg. 301.6222(b)-1, filed a statement identifying the inconsistency, or if the partner makes a Treas. Reg. 301.6222(b)-3 election, then TEFRA procedures apply and an FPAA is necessary. Otherwise, no FPAA is necessary. I.R.C. 6222(c); Treas. Reg.
301.6222(b)-2.
A notice of deficiency is required only if a partner-level determination is necessary or if the partnership items have converted to nonpartnership items through a mechanism other than settlement. I.R.C.
6230(a)(2)(A).
3. If the partner has filed a statement identifying the inconsistency or made a Treas. Reg. 301.6222(b)-3 election, then the Service should not employ the CP 2000, but instead TEFRA procedures, and must consider whether to pursue issuing an FPAA. I.R.C. 6222(c); Treas. Reg. 301.6222(b)-2.