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Ezel / IRS Rulings / 202002015
Chief Counsel Advice 202002015 Released January 10, 2020 Advice

Later ownership changes do not alter an earlier tax matters partner designation

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This page covers one taxpayer's ruling from 2020, 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 2020
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

Chief Counsel addressed whether later changes in a person's ownership or management status affect that person's role as tax matters partner for an earlier audit year. The advice treats a partnership and an LLC taxed as a partnership the same for this purpose. If the person was a proper tax matters partner during the year under audit, later disposing of the interest or changing from member-manager to non-member-manager does not alter the designation for that audited year. The designation ends only through the termination methods specified in the applicable regulation.

Ruling snapshot

  • Question: Do later changes in a person's ownership or member-manager status terminate that person's tax matters partner designation for an earlier audit year?
  • Outcome: advice given, the earlier designation remains unless terminated under the regulation
  • Key authorities: Treas. Reg. § 301.6231(a)(7)-1(l)

Full text (IRS public release)

ID:          CCA_2019102408511443
UILC:        6231.07-00

Number: 202002015
Release Date: 1/10/2020
From:
Sent: Thursday, October 24, 2019 8:51:14 AM
To:
Cc:
Bcc:
Subject: RE: Quick Tefra question

No, he does not. A partnership and an LLC taxed as a partnership are the same (there
is no TMM, only TMP). If the person was a proper TMP in the year under audit,
subsequently disposing of the person's interest or going from a member-manager to a
non-member-manager in a different year has no effect on the TMP designation for the
year in which the person was a member-manager. A TMP designation is only
terminated as described in 301.6231(a)(7)-1(l).

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