Tax Treatment Determined At Partnership Level-BBA

ID:
UILC:
CCA_2023061508284843
6221B.00-00
[Third Party Communication:
Date of Communication: Month DD, YYYY]
Number: 202346019
Release Date: 11/17/2023
From: ---
Sent: Thursday, June 15, 2023 8:28:49 AM
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Subject: RE: Acrobat Document.pdf
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This is still our position. However, under 301.6241-6, the IRS may adjust items that would be PRIs at the partner level solely for purposes of determining a non-chapter 1 tax. So if the IRS wanted to make the determination at the partner level instead of the partnership level, it could but there could not be any effect on chapter 1 taxes as a result of that ---------Under 301.6241-6 the item would still be a PRI, it would just be adjusted at the partner-level for nonchapter 1 purposes. ---------The checklist is correct. If an item has zero possible impact on chapter 1 taxes, it is not a PRI and cannot be adjusted at the partnership level. NESE impacts a chapter 1 deduction which is why it is a PRI and can be adjusted at the partnership level. NESE would not be covered by the “non-chapter 1” box. Things that would be covered by that – any adjustments to chapter ¾ withholding, actual partner-level SECA tax, payroll taxes, excise taxes.
Hope this helps. Please let me know if you have any questions.
Thanks,
Jenni
Jenni Black (she/her)
Senior Counsel
CC:PA:06
Phone: (202) 317-5216