Items Cease to Be Partnership Items in Certain Cases

ID: CCA_2010072808303937 Number: 201034020
Release Date: 8/27/2010
Office: ---
UILC: 6231.13-00
From: ---
Sent: Wednesday, July 28, 2010 8:30:42 AM
To: ---
Cc: ---
Subject: RE: TMP in bankruptcy
Under Rev. Rule 2004-88, the trust can continue to act as TMP since it is not in bankruptcy.
Since the husband grantor/beneficiary is bankrupt, you are correct that he personally automatically drops out of the TEFRA proceeding.
As a practical matter, only the non-bankrupt wife will be subject to tax based on the TEFRA proceeding.
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