Assessments Made Only After Partnership Level Proceedings Are Completed

ID:
UILC:
CCA_2024063013412948
6225.00-00
[Third Party Communication:
Date of Communication: Month DD, YYYY]
Number: 202433012
Release Date: 8/16/2024
From: ---
Sent: Tuesday, May 21, 2024 1:52:16 PM
To: ---
Cc: ---
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Subject: RE: Question about NAV project and business bad debt deduction
As 301.6225-2(d)(2) states, amended return modification can only take into account partnership adjustments and partner tax attributes affected by the partnership adjustments. Whether a partner would be entitled to a bad debt deduction related to amounts the partner loaned the partnership is not a partnership adjustment or a partner tax attribute. Therefore, I do not think it can be included as part of amended return modification. However, if the partner’s 6501/6511 periods are open, the partner could file an amended return to claim any deduction to which the partner thinks he/she/it is entitled that is not dependent on an adjustment to a PRI as appears to be the case here.
If we entered into a closing agreement with the partner, it could also be included in the closing agreement and could be taken into account during modification under 301.6225-2(d)(8).
Thanks,
Jenni
Jenni Black (she/her)
Senior Counsel
CC:PA:06
Phone: (202) 317-5216