Affected Item

ID: CCA_2010100508410537 Number: 201042036
Release Date: 10/22/2010
Office: ---
UILC: 6231.05-00
From: ---
Sent: Tuesday, October 05, 2010 8:41:11 AM
To: ---
Cc: ---
Subject: RE: TEFRA
1. On the issue of whether the recharacterization of a loan by Corp A to Partnership B is an affected item as to Corp A: The tax at the Corp A level is not an affected item because Corp A is not a partner in Partnership B and is not bound the B's treatment or determination of the amounts received from A.
Affected items only exist with respect to partners.
2. Since Mom is not a partner in B, any deemed gift by her to the partners of B is not an affected item as to her. Thus, any gift tax would be asserted against her through a non-TEFRA notice of deficiency issued within her normal (non-TEFRA ) period for assessment.