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give notice to such partner, in lieu of the pass-thru entity, if
the indirect partner’s name, address, and profits interest is
provided. Sec. 6223(c)(3). To trigger the Commissioner’s duty
to notify under section 6223(a), the names, addresses, and
profits interests of partners and indirect partners must be
provided to the IRS in one of two ways. They must be furnished
either on the tax return of the partnership being audited, or in
a letter to the IRS that fulfills the requirements of section
301.6223(c)-1T, Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6784 (Mar. 5, 1987). Sec. 6223(c). The IRS may use other
information that is available to it; however, it is not required
to “search its records” to obtain information not provided under
section 6223(c). Sec. 301.6223(c)-1T(f), Temporary Proced. &
Admin. Regs., supra.8
In this case, the IRS was required to, and did, notify South
Bay of the Redwood audit. Sec. 6223(a). Redwood’s partnership
return would have indicated South Bay’s name, address, and
profits interest, and would also have indicated that Redwood had
only 37 partners. There is no evidence in the record that the
Redwood partnership return would have named South Bay’s partners.
Although the IRS could have discovered that information using its
own records, in this case it chose not to. As a result,
8The temporary regulations were in effect for the year in
issue; the Commissioner published final regulations effective
Oct. 4, 2001. Sec. 301.6223(c)-1(g), Proced. & Admin. Regs.
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