A partnership's designated individual needs no relationship to its entity partnership representative

Plain-English summary

This short Chief Counsel email explains who may serve as the designated individual for an entity partnership representative. The designated individual does not need any relationship with the entity serving as partnership representative. The IRS also does not need to determine whether the individual has authority under state law to bind that entity. When a partnership names an entity as its partnership representative, it must separately name an individual who alone has authority to act for the entity under Treasury Regulation § 301.6223-1.

Ruling snapshot

• Question: Must the designated individual have a relationship with, or state-law authority to bind, an entity partnership representative?
• Outcome: Advice given (no relationship or state-law authority is required).
• Key authorities: Treas. Reg. § 301.6223-1.

Full text (IRS public release)

ID: CCA_2021050308435743
UILC: 6223B.00-00

Number: 202137011
Release Date: 9/17/2021
From: --------------------
Sent: Monday, May 3, 2021 8:43:57 AM
To: ----------------------------------------------------
Cc:
Bcc:
Subject: RE: 872-M question

Not a problem at all. The designated individual (DI) does not need to have any
relationship to the partnership representative (PR) whatsoever. We do not need to look
to see whether the DI has state law authority to bind the PR. If the partnership
designates an entity-PR, the partnership must also name a DI who will have the sole
authority to act for the entity-PR under 301.6223-1.

Please let me know if you have any questions.

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