Coordination with Deficiency Proceedings

ID:
UILC:
CCA_2014013110205501
6230.01-00
[Third Party Communication:
Date of Communication: Month DD, YYYY]
Number: 201413011
Release Date: 3/28/2014
From:
Sent: Friday, January 31, 2014 10:20:55 AM
To:
Cc:
Bcc:
Subject: RE: Woods Supreme Court Case
The penalty can be directly assessed following the partnership proceeding and deficiency procedures do not apply to the penalty regardless of any required partnerlevel determinations. Partner-level defenses must be asserted through a refund claim after assessment and payment. Treas. Reg. 301.6221-1(d). Section 6230(a)(2)(A)(i) makes the penalty not subject to deficiency procedures. But the Service may consider whether the partner had an individual reasonable cause/good faith defense in deciding whether to assess the penalty. An affected item report should be included with the RAR to make this partner-level determination.