Partnership cannot elect out of BBA on a late return
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This page covers one taxpayer's ruling from 2023, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.
Plain-English summary
IRS Chief Counsel was asked whether a delinquent partnership return could make
an election out of the centralized partnership audit regime commonly called
BBA. The response was no. An election out is valid only when made on a timely
filed return, taking valid filing extensions into account.
Ruling snapshot
- Question: Can a partnership elect out of BBA on a delinquent return?
- Outcome: Advice given. No, the election requires a timely filed return.
- Key authorities: IRC § 6221(b).
Full text (IRS public release)
ID: CCA_2022121407553343 [Third Party Communication:
UILC: 6221.01-00 Date of Communication: Month DD, YYYY]
Number: 202312001
Release Date: 3/24/2023
From: --------------------
Sent: Wednesday, December 14, 2022 7:55:33 AM
To: ----------------------------
Cc:
Bcc:
Subject: RE: delinquent election invalid?
Yes. An election out of BBA can only be made on a timely filed return (including
extensions).
Jenni Black (she/her)
Senior Counsel
CC:PA:07
Phone: (202) 317-5216
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