Tax Treatment Determined At Partnership Level

ID:
UILC:
CCA_2014051908284301
6221.00
[Third Party Communication:
Date of Communication: Month DD, YYYY]
Number: 201423021
Release Date: 6/6/2014
From:
Sent: Monday, May 19, 2014 8:28:43 AM
To:
Cc:
Bcc:
Subject: RE: TEFRA Question
A partner’s outside basis in --- is not a partnership item of --- as recently confirmed by the Supreme Court in Woods v. Commissioner. We can issue an FPAA to ---to disallow losses on the grounds that it did not have enough basis in --- under section 704(d). --- basis in its own assets is its own partnership item. In computing this basis, however, both ---and the Service will be bound by the reported partnership items of ---. Roberts v. Commissiner, 94 T.C. 853, 860. For instance, --- will be bound by its capital contributions to ------ as reflected on its K-1 from ---as well as its share of ------ liabilities, profits and losses. I.R.C. 705.