- 8 -
pass-thru entity, the Commissioner is required to give notice to
such partner in lieu of the pass-thru entity that would otherwise
be entitled to notice, if the indirect partner’s name, address,
and profits interest is provided. Sec. 6223(c)(3).
The Commissioner’s duty to notify under section 6223(a) is
triggered only if the names, addresses, and profits interests of
partners and indirect partners are provided to the IRS in one of
two forms described in section 6223(c). They must be furnished
either on the tax return of the partnership being audited, or in
a statement 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 also may use other
information that is available to it; however, it is not required
to “search its records” to obtain information not provided in the
forms required by section 6223(c). Sec. 301.6223(c)-1T(f),
Temporary Proced. & Admin. Regs., supra.7
In this case, the IRS was required to, and did, notify Asher
of the Wilshire audit. Sec. 6223(a). Wilshire’s partnership
return would have indicated Asher’s name, address, and profits
interest, and would also have indicated the number of partners
that Wilshire had. Nothing in the record indicates that the
Wilshire partnership return listed the individual Asher partners.
7The 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.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011