Tax News

CCH (cch.taxgroup.com) reports:

A final partnership administrative adjustment (FPAA) notice, sent to an individual who was identified as an indirect partner of a general partnership, met the notice requirements of Code Sec. 6223(c)(3). The individual was the sole beneficiary of a trust that owned an interest in the general partnership that was the subject of the FPAA. The IRS readily found his name and address, as well as that of the tax matters partner who resided at the same address, from the individual's return identifying him as the beneficiary of the trust; the trust's return that listed the ownership interest in the general partnership under question; and the partnership's return listing the trust as a general partner. The individual's argument that the notice should have been sent to the trust, and not directly to him, was rejected because the individual owned the interest in the partnership through a "pass-through partner", i.e., the trust, and Code Sec. 6223 requires notice to be sent to the indirect partner rather than the pass-through partner.
C.P. Murphy, 129 TC No. 10, Dec. 57,120
Other References:
Code Sec. 6223
CCH Reference - 2007FED ¶37,639.20
CCH Reference - 2007FED ¶37,639.22
Tax Research Consultant
CCH Reference - TRC PART: 60,152
CCH Reference - TRC PART: 60,310