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Ezel / IRS Rulings / 201723024
Chief Counsel Advice 201723024 Released June 9, 2017 Advice

State law determines who may sign for a terminated trust in a TEFRA case

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This page covers one taxpayer's ruling from 2017, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

Currency note: this determination was released in 2017
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

A terminated trust was a notice partner in a TEFRA partnership, and the examining team asked who could sign Form 870-PT to agree to partnership-item adjustments. Chief Counsel advised first confirming whether the trust had terminated under state law. A trustee ordinarily signs for a trust and its beneficiaries, but after termination state winding-up law determines who can act, including whether a successor trust has authority. If no authorized representative can be found, the IRS can obtain a separate form from each beneficiary or issue a final partnership administrative adjustment.

Ruling snapshot

  • Question: Who may sign Form 870-PT for a terminated trust that is a notice partner?
  • Outcome: Advice given. State law determines post-termination authority; beneficiary signatures or an FPAA are alternatives.
  • Key authorities: IRC § 6224; IRM Exhibit 4.31.2-4; applicable state winding-up law

Full text (IRS public release)

ID: CCA_2017060213301447
UILC: 6224.00-00

Number: 201723024
Release Date: 6/9/2017
From:
Sent: Friday, June 02, 2017 1:30:14 PM
To:
Cc:
Bcc:
Subject: RE: Form 870-PT for TEFRA Case

You have requested assistance on who may sign a Form 870-PT on behalf of a
terminated trust (Trust A) which is a notice partner in a TEFRA partnership. Each notice
partner must individually sign a Form 870-PT to agree to adjustments proposed to
partnership items. We recommend that you first verify whether the trust was terminated
under state law. IRM Exhibit 4.31.2-4 provides that the trustee must sign the Form 870-
PT if signing on behalf of the trust and all beneficiaries (individual beneficiaries may sign
to bind themselves). If the trust has terminated under state law, you will need to
research state law to determine who has the authority to act for the trust. A state
usually has a “winding up” law that addresses who may act for an entity after
dissolution. We do not believe Trust B will be implicated unless state law shows that
Trust B can legally act for Trust A (such as being a successor-in-interest). If you cannot
identify someone under state law who can act for the trust, then other options will be to
secure a Form 870-PT from each beneficiary or to issue an FPAA.

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