Form 872-F, Consent to Extend the Time to Assess Tax Attributable to Items of a Partnership or S Corporation That Have Converted to non-partnership items under IRC section 6231(b), will extend the statute of limitations for partnership items and S corporation items that have converted to non-partnership items under IRC section 6231(b). Form 872-F will also extend the statute for affected items on these partnership or S corporation items. Form 872-F is limited to one partnership or S corporation, though multiple years may be included. The most common situation where items are converted under IRC section 6231(b) is a settlement agreement. A defaulted FPAA or entered court decision does not result in the conversion of partnership items to non-partnership items. Thus, Form 872-F cannot be used in these situations.

Form 872, (Revision 10-2009) Consent to Extend the Time to Assess Tax, will extend the statute for non-TEFRA adjustments (regular income tax adjustments), partnership items, affected items, partnership items converted to non-partnership items under IRC section 6231(b) (including such items arising from defaulted FPAAs and entered court decisions during the statute period under IRC section 6229(d)). Form 872 is not limited to one partnership and may include multiple years. In addition the Form 872 covers non-TEFRA adjustments. Form 872-I previously used for this purpose is obsolete.

Form 872-A (Revision 10–2009), Special Consent to Extend the Time to Assess Tax, is an open-ended version of Form 872. Form 872-IA previously used for this purpose is obsolete.

In Ginsburg, 127 T. C. 75 (2006), the Tax Court held that a consent that did not reference tax attributable to partnership items was not sufficient to extend the statute for affected items. As a result of Ginsburg, the Service has developed revised consents, Form 872 (Revision 10-2009) and Form 872-A (Revision 10–2009) that extends the statute of limitations when the taxpayer was either a direct or indirect partner in one or more entities that file (or should file) a Form 1065 (including a limited liability company), in the event that there are affected items at issue. This consent also extends the statute of limitations for non-TEFRA adjustments from a taxpayer's return unrelated to a partnership or a S Corporation.

Any additional tax resulting from the partnership item adjustments must be assessed by the one-year statute date that was triggered by the closure of the partnership proceeding.

If the taxpayer declines to sign a statute extension, the case activity record should be documented accordingly.

The Service must notify the taxpayer (or authorized representative executing a consent) on each occasion when the taxpayer is requested to extend the statute by consent as to the following rights as required by IRC section 6501(c)(4)(B):

If the TEFRA partnership or S corporation key case is settled, the CTF will process the partnership or S corporation adjustments for the investors who are not CIC corporation, Joint Committee or other corporate specialty cases. The CTF will send a copy of the computations ( Form 5344 and Form 1902-C to Account and Processing Support. Account and Processing Support will forward these documents to the appeals officer. The appeals officer will associate these documents with the investor file for use in preparing settlement computations.

If Appeals did not receive the Form 5344 and Form 1902-C, and there are indications in the case file that the taxpayer is a party to a TEFRA proceeding, the appeals officer or tax computation specialist will request a transcript for that investor prior to preparation of the audit statement or closing documents for the non-TEFRA adjustments. If necessary, request copies of the TEFRA computations from the taxpayer or the CTF.

If the TEFRA adjustments have been made and assessed before the non-TEFRA adjustments, as noted in paragraphs (1) and (2) above, the tax computation specialist will combine the TEFRA examination results with taxable income to produce the corrected taxable income when the non-TEFRA adjustments are computed.

If unagreed, follow normal procedures for preparation and issuance of a statutory notice of deficiency. The notice will show only non-TEFRA adjustments. Include TEFRA issues in taxable income as previously adjusted and tax as previously adjusted.

If the taxpayer has an IRC section 6405(a) refund in excess of $2,000,000 and the criteria of IRM 8.9.1 are met, an expedited refund report should be submitted to the Joint Committee. See IRM 8.19.6.12.

If non-TEFRA issues are settled when the TEFRA proceeding remains open and the case is in non-docketed status, take the following actions:

If the non-TEFRA issues are settled when the TEFRA proceeding remains open and the case is in docketed status, take the following actions:

If the non-TEFRA issues are unagreed and it is necessary to issue a statutory notice of deficiency prior to the resolution of the TEFRA issues, prepare the notice of deficiency as discussed in IRM 8.19.4.10 and IRM 8.19.4.11.

If the case is closed because the statutory notice (discussed in paragraph (3) above) has defaulted, take the following actions:

Final determinations of tax liability pursuant to IRC section 7121 are ordinarily reflected on Form 866, Agreement As To Final Determination of Tax Liability.

If the taxpayer is an investor in a TEFRA pass-through entity, the Form 866 should include the following statement in the Determination section:

Final determinations of specific matters pursuant to IRC section 7121 are ordinarily reflected on Form 906, Closing Agreement on Final Determination Covering Specific Matters.

If the taxpayer is an investor in a TEFRA pass-through entity, Form 906 should include the following statement in the Determination section:

The Restructuring and Reform Act of 1998 (RRA 98) gave taxpayers the right to a due process hearing with Appeals when they receive a Notice of Federal Tax Lien Filing or a Notice of Intent to Levy. A taxpayer may raise any relevant issue related to the unpaid tax or proposed levy including spousal defenses, such as relief under IRC section 6015.

Upon receipt of the computational adjustments, a spouse or former spouse of an investor in a TEFRA partnership or S corporation may request innocent spouse relief by filing Form 8857, Request for Innocent Spouse Relief. If the claim is denied it will be forwarded to an appeals officer for consideration of the innocent spouse issue.

The appeals officer may find that the unpaid liabilities relate to adjustments of TEFRA partnership or S corporation items, including penalties, additions to tax, and affected items.

If the taxpayer entered into a specific matters closing agreement, innocent spouse relief is available unless the closing agreement addressed the innocent spouse issue. If the taxpayer entered into an agreement for final determination of tax liability, innocent spouse relief may or may not be available depending on whether the agreement was signed pursuant to IRC section 6224(c). See Treas. Reg. section 1.6015-1(c)(2).

Innocent spouse relief cannot be granted prior to the assessment of the tax relating to TEFRA partnership or S corporation adjustments.

Taxpayers requesting innocent spouse relief prior to the assessment of the deficiency should be directed to contact the IRS employee with jurisdiction of the pass-through entity return to resolve the issues raised in the TEFRA examination. Form 8857, Request for Innocent Spouse Relief, should be filed after the assessment is made.

The existence of an open TEFRA linkage should not prevent resolution of the innocent spouse relief issue regarding non-TEFRA issues and TEFRA issues that have been assessed. If a taxpayer wants to obtain innocent spouse relief from potential liability due to the open TEFRA linkage, the taxpayer may file another Form 8857 to request innocent spouse relief from the TEFRA liability after the assessment for the open TEFRA linkage is made.

Prepare a report to the Joint Committee when any one of the following sources result in a refund to a taxpayer in excess of $2,000,000:

The Appeals or Compliance employee with jurisdiction of the investor case is responsible for ensuring that a report is made to the Joint Committee when the TEFRA adjustments result in a refund in excess of $2,000,000 to the taxpayer. See Exhibit 8.19.6-3. and Exhibit 8.19.6-4. for sample Joint Committee on Taxation letters when the refund results from TEFRA partnership adjustments.

The appeals officer who considered the appeal of the partnership, if applicable, should cooperate as much as possible with the employee preparing the Joint Committee on Taxation report for the investor, if so requested.

When the investor case is in Appeals jurisdiction, the appeals officer should determine the need for a Joint Committee referral on TEFRA issues when the tax computations are made at the investor level. The appeals officer will not suspend a report to the Joint Committee for a refund from TEFRA issues waiting on the outcome of the non-TEFRA issues.

Do not add the refund from TEFRA adjustments to the refund from non-TEFRA adjustments to determine if a Joint Committee referral is needed. These are separate refunds and, if a referral to the Joint Committee is necessary, report the TEFRA refund to the Joint Committee separately from the report of the non-TEFRA refund.

On all potential Joint Committee cases the appeals officer should secure an AMDISA and TSUMY to determine whether the taxpayer is a party to a TEFRA proceeding before making a report to the Joint Committee on Taxation on the non-TEFRA issues. If the taxpayer is a party to a TEFRA proceeding, the Joint Committee on Taxation report must be modified as discussed in IRM 8.19.6.12.3.1 . See also See Exhibit 8.19.6-1 and Exhibit 8.19.6-2..

Appeals officers will not suspend Joint Committee referrals on investor cases under Appeals jurisdiction for non-TEFRA issues to wait for the results of a TEFRA proceeding.

After tax from the adjustment of TEFRA partnership items is assessed, Appeals may receive the investor case for consideration from any of the following sources:

The investor file generally includes these items:

The file should also include documents that authorize the assessment of tax based on the adjustment of partnership/S corporation items:

The file should also include TEFRA letters sent to the investor such as the following:

Examine the investor case file carefully for documents. The investor case file may contain all the documents to complete Appeals consideration.

Request the key case administrative file if needed. Do not assume it was destroyed or misplaced just because you did not receive it.

Contact the key case CTF for the certified mailing records for its key cases. See IRM 4.29.5.2.2 for NBAPs and IRM 4.29.5.2.4 for FPAAs.

The key case CTF maintains certain records for its key cases for a period after the final closing. Contact the key case CTF for records located in the CTF. Local procedures may vary.

Additional actions to consider are these:

Contact your area TEFRA coordinator for additional guidance.

The filing of a petition in bankruptcy is one of the special enforcement areas that convert the investor’s partnership items to non-partnership items (Treas. Reg. section 301.6231(c)-(7)(a)).

Treas. Reg. section 301.6231(c)-7(a) can be reduced to a simple three-part test. The items convert if:

It may be difficult to determine whether a claim could be filed against the partner in a bankruptcy case where the debtor is an individual. In Katz v. Commissioner, 335 F.3d 1121 (10th Cir. 2003), a case involving an individual Chapter 7 debtor, the Court held that the debtors partnership items arising in 1990, the year that the bankruptcy petition was filed, did not convert on the petition date because the debtor did not elect to split the 1990 tax year into two short taxable years pursuant to IRC section 1398(d)(2). Thus, the debtor's 1990 taxes were treated as post-petition debt of the debtor that could not be claimed in the bankruptcy case. It followed that the latest taxable year of the debtor-partner with respect to which the United States could file a claim for income tax due in the bankruptcy proceeding was 1989, not 1990. The debtor's bankruptcy failed to convert the 1990 partnership items even though the partnership items may effect the bankruptcy estate's liability by virtue of the debtor's partnership interest having passed to the estate. If you have a Chapter 7 or Chapter 11 bankruptcy case and a post-petition tax year, please consult Area Counsel to determine whether a claim could be filed against the partner.

The filing of a petition in bankruptcy also starts the one-year assessment period under IRC section 6229(f). Within one year of the filing of the bankruptcy petition, the tax must be assessed after the investor signs a waiver of assessment (Form 870 or Form 870-AD) under the deficiency procedures or the IRS must issue a statutory notice of deficiency. The one-year assessment date may be extended with Form 872-F, Form 872 (Revision 10–2009), or Form 872-A (Revision 10–2009).

If a joint return is filed, and one spouse owns a separate interest in the partnership, and that spouse files for bankruptcy, the partnership items convert to non-partnership items for that spouse. The spouse who was a partner only by virtue of filing a joint return is no longer considered a partner in the partnership. See Treas. Reg. section 301.6231(a)(2)-1.

If a joint return is filed, and one spouse owns a separate interest in the partnership, and the other spouse files for bankruptcy, the partnership items for the spouse who owns the interest do not convert to non-partnership items. However, the spouse that does not have an interest is no longer treated as a partner. See Treas. Reg. section 301.6231(a)(2)-1.

If a husband and wife own a joint interest in a partnership, each spouse is treated as a separate partner. Therefore, if one spouse files for bankruptcy, only the partnership items of the spouse filing for bankruptcy convert to non-partnership items. The spouse who did not file for bankruptcy continues as a partner in the partnership proceeding. Deficiency procedures would apply to the spouse filing for bankruptcy. See Treasury Reg. section 301.6231(a)(2)-1.

The bankruptcy of a consolidated group member converts that member's separately held partnership items to non-partnership items for all group members. The other members of the consolidated group will no longer be considered partners under IRC section 6231(a)(2)(B) with respect to the bankrupt corporation's separately held items.

IRC section 6229(h) provides for a suspension of the running of the period of limitations with respect to the bankrupt partner while the bankruptcy proceeding prohibits assessment plus 60 more days. There is no longer a prohibition against assessment, making this provision inapplicable. It is strongly recommended that a statutory notice of deficiency be issued. (See 11 U.S.C. 362(b)(9).)

Treasury Reg. section 301.6229(b)-2 provides that a statute extension signed by a bankrupt partner who would be the TMP except for the bankruptcy is binding on all partners in the partnership unless the IRS was notified of the bankruptcy proceeding in accordance with Treasury Reg. section 301.6223(c)-1. (For partnership taxable years beginning prior to October 4, 2001, see Temporary Treas. Reg. section 301.6229(b)-2T.)

Any agreement to extend the statute of limitations signed by a tax matters partner before the date of his personal bankruptcy remains valid.

The TMP’s bankruptcy will not toll the statute of limitations. See Tempest Associates v. Commissioner, 94 T. C. 794 (1990).

When a partner files for bankruptcy, the bankrupt partner’s partnership items are converted to non-partnership items if the partnership items were not previously converted. The conversion to non-partnership items is permanent. There is no reinstatement even if the bankruptcy is dismissed or discharged.

The one-year assessment date per IRC section 6229(f) begins on the day the petition naming the investor in a bankruptcy proceeding is filed. See Treas. Reg. section 301.6231(c)-(7)(a). The one-year assessment date may be extended with Form 872-F, Form 872 (Revision 10–2009) or Form 872-A (Revision 10–2009).

If a partner’s one-year assessment date started before the bankruptcy petition, the one-year assessment date continues the same as if the bankruptcy petition had not been filed. The one-year assessment date could start before the bankruptcy petition due to the conversion of partnership items to nonpartnership items, by settlement or other conversion events. Issuing a statutory notice of deficiency on partnership items previously converted by an event other than the bankruptcy or previously made final by a defaulted FPAA or a final court decision will not suspend the period of limitations.

Under IRC section 6871(b) the period for assessment under IRC section 6229(f) is not suspended by IRC section 6503(a)(1) if a statutory notice is issued for tax which may be assessed immediately. The deficiency from the previously converted or finalized partnership items can now be assessed immediately under IRC section 6871(b) and 11 U.S.C. 362(b)(9)(D) without having to ask the bankruptcy court to lift the stay of IRC section 362(a)(6) of the Bankruptcy Code. The deficiency must be assessed within one year of the settlement or the finalizing of the partnership items by default of the FPAA or entry of the final court decision, whichever is appropriate.

If an investor files for bankruptcy, the CTF will send a notice to the key case Appeals Office alerting them of that occurrence. The Appeals Office with the key case is not responsible for the investor case.

If Appeals becomes aware of an investor bankruptcy for which no notice was received from the CTF, Appeals will notify the CTF of the occurrence.

The appeals officer assigned the key case must determine if the bankrupt investor is the TMP. If the bankrupt investor is the TMP and the partnership does not select a new TMP, Appeals may have to designate a new TMP. If the case is docketed, consult with associate area counsel about asking the court to appoint a new TMP. Note on the Form 886-Z(C) that the investor was removed from the partnership proceeding by the bankruptcy.

The CTF will notify Compliance that the investor filed for bankruptcy and will forward the investor case to the appropriate Compliance office to work the converted bankrupt investor case. Appeals should provide the key case adjustment information to the Compliance employee charged with the investor case.

An investor may file for bankruptcy while the CTF has the TEFRA issues on the investor case and Appeals has the non-TEFRA issues on the investor case.

Cooperate with the employee who has the TEFRA issues on the investor case to provide information for the adjustment to the investor case.

The Compliance function may issue a statutory notice of deficiency on the investor including the pass-through entity adjustments.

Additional statutory notices of deficiency may be issued even though the investor in Appeals jurisdiction already has been issued a statutory notice. See IRC section 6230(a)(2). Under IRC sections 6230(a)(2)(A) and (B) Compliance may issue a statutory notice of deficiency combining partnership items in multiple partnerships in one notice of deficiency (IRC sections 6230(a)(2)(A)(ii) and 6231(e)(1)(B)).

If a statutory notice of deficiency is issued, this will terminate a Form 872-A. If you become aware that a partner in your inventory, whose statute is extended with a Form 872-A, filed for bankruptcy, and the compliance function will issue a statutory notice of deficiency, secure an extension of the statute with a Form 872 to protect the statute in your jurisdiction.

See IRM 8.7.6 for additional requirements for a bankruptcy case.

There is no one sure method to determine if an investor is named in a bankruptcy petition. Sometimes the taxpayer, representative or TMP may make remarks that raise questions about a partner filing for bankruptcy. These are suggestions to assist with the determination.

Check for a bankruptcy indicator on a transcript or on AIMS.

Call the Special Procedures Branch where the investor is most likely to file for bankruptcy. A taxpayer can file for bankruptcy almost anywhere.

Research on Accurint. Accurint is a software program that provides bankruptcy information as well as other basic asset information on individuals and businesses.

Research on PACER, if available in your office. PACER is software used by federal district and bankruptcy courts to identify bankruptcy cases whether or not IRS is a creditor. The information on PACER is controlled by the courts. There may be a charge to use PACER. Consult your local bankruptcy coordinator.

Check with your Compliance bankruptcy coordinator.

Ask the investor directly, and document the response. Attempt to obtain a written response from the investor.

Search the administrative file for any indication of bankruptcy.

Ask your local bankruptcy coordinator for other suggestions.

Sometimes an affected item case reaches Appeals in non-docketed status. The statute for the non-docketed affected item case is one year from the date one of the following events occurred:

The one-year date by which the period of limitations is suspended by a defaulted FPAA or a final court decision can be extended. See IRC section 6229(d). A Form 872 (Revision 10–2009) or a Form 872-A (Revision 10–2009) can be used in this instance to extend the IRC section 6229(a) statute.

A one year date created by a conversation of partnership items to nonpartnership items as described in IRC section 6229(f) can be extended. Use Form 872-F, Form 872 (Revision 10–2009) or Form 872-A (Revision 10–2009).

A partnership proceeding is not necessarily required prior to an affected item proceeding. See Roberts v. Commissioner, 94 T. C. 853 (1990).

In such an affected item proceeding, no partnership level item may be challenged. Only affected items and issues that require partner level determinations may be considered.

If there is no prior partnership proceeding, the statute of limitations for an affected item proceeding is determined under IRC section 6229(a) or IRC section 6501. The issuance of an affected item notice of deficiency suspends these periods under IRC section 6503.

In an affected item case after a partnership proceeding, neither the taxpayer nor the government may challenge a partnership level item. Only issues that require partner level determinations may be challenged.

Consider the partnership level evaluation along with evidence and facts provided by the individual to arrive at a settlement position on the individual investor's case. If the investor does not present additional evidence and facts, follow the partnership level evaluation.

If the investor's case is docketed, the decision documents should specify that the penalties or other affected items are attributable to a specific TEFRA partnership. See IRM 35.8.6.1.5.

Appeals may not settle partnership items as part of an affected item proceeding. Doing so may reopen partnership items for all other partners under the consistent agreement rule of IRC section 6224(c)(2).

A docketed affected item case may result in an overpayment. A statement of account is generally needed.

For partnership tax years ending after August 5, 1997, IRC section 6230(c)(1)(C) and IRC section 6230(d) provide for the refund of penalties, additions to tax or additional amounts that related to an adjustment to a partnership item. Refunds for other affected items requiring deficiency procedures are provided under IRC section 6512(b). IRC sections 6230(c)(1) and 6230(d) provide for refunds of affected items which do not require deficiency procedures (computational affected items).

For pass-through entity tax years ending before August 6, 1997, IRC section 6512(b) provides for refund of penalties and other affected items that require deficiency procedures. Alternatively, the partner may allow the notice of deficiency to default, pay the tax and sue for refund in a district court or the U.S. Court of Federal Claims.

The non-TEFRA issue case statute of limitations is determined under IRC section 6501. This statute is shown on ACDS as the investor case statute.

A separate statute applies to the investor for each TEFRA entity in which the taxpayer invested. Appeals now tracks the separate TEFRA statute for the CIC corporate investor, the Joint Committee investor and investors which are other corporate specialty cases.

When a case is received in Appeals, Account and Processing Support will research all CIC corporation, Joint Committee and other corporate specialty cases for related TEFRA linkages.

If the AMDIS or AMDISA has a PICF code of 5, this indicates that the investor has at least one open TEFRA key case linkage. If the PICF code is 5, take the following actions:

On no-change TEFRA key cases the appeals officer will verify that the amounts reported by the CIC corporate, Joint Committee, or other corporate specialty investor agree with the amounts shown on that taxpayer’s Schedule K-1. If the amounts do not agree, and the investor did not file a Form 8082 with its return (see below), a computational adjustment will be necessary to conform the investor's return to the items shown on the Schedule K-1.

The appeals officer will complete the verification as soon as possible after receipt of the no-change closing package from the applicable TEFRA Campus. If the no-change closing package does not contain a copy of the taxpayer's Schedule K-1 from the TEFRA key case, a copy should be requested from either the TEFRA Campus or from the taxpayer. If the taxpayer's return or other information in the administrative file does not contain sufficient information in order to determine what amounts were reported by the taxpayer from the TEFRA key case, the appeals officer should request this information from the taxpayer.

If the investor did not file a Form 8082, Notice of Inconsistent Treatment, the adjustment to conform the investor's return to the Schedule K-1 does not require a settlement agreement. It should be made as a computational adjustment. The appeals officer will request that the tax computation specialist compute the related deficiency. The appeals officer will request Account and Processing Support to assess the deficiency to conform the investor return with the key case return prior to the expiration of the statute by so requesting in the remarks section of Form 5402 and submitting the Form 5402 and a copy of the computations to Account and Processing Support with the appropriate statute noted on the Form 5402. See Figure 6-1 to determine the statute of limitations for conforming the investor's return to the Schedule K-1. Account and Processing Support will make the interim assessment per IRM 8.20.6 and return the case to the appeals officer.

The statute to assess the deficiency from the computational adjustment may be extended by securing either Form 872 (Revision 10–2009) or Form 872-A (Revision 10–2009) from the investor before the expiration of the applicable statute reflected in Figure 6-1.

If the investor did file a Form 8082, Notice of Inconsistent Treatment, the investor's return cannot be corrected to agree with the Schedule K-1 unless the partnership or S corporation return is examined or the investor's partnership/S corporation items are converted to non-partnership/non-S corporation items by the Commissioner under IRC section 6231(b)(1)(A). If the Service did not convert the partnership/S corporation items under IRC section 6231(b)(1)(A), the adjustment to conform the investor's return to the Schedule K-1 requires a settlement agreement or an FPAA/FSAA. If the Service did convert the partnership/S corporation items under IRC section 6231(b)(1)(A), non-TEFRA deficiency procedures must be followed.

Figure 8.19.6-1

If the investor defaults on a statutory notice of deficiency for penalties or other affected items, Account and Processing Support will prepare the case for final closing.

If the investor petitions the Tax Court in response to a statutory notice of deficiency for penalties or other affected items, Account and Processing Support will take the following action:

If the TEFRA issues are completed prior to the non-TEFRA issues, use interim procedures to process the TEFRA issues. See IRM 8.19.6.17.1.2.. The appeals officer will prepare a Form 8339 for PCS closing. See Exhibit 8.19.5-17 for a sample Form 8339 closing the linkage. The appeals officer will note on form 5402 in remarks that Account and Processing Support is to update PCS according to the Form(s) 8339 attached. See IRM 8.19.6.9. for instructions on interest suspension under IRC section 6601(c).

When the non-TEFRA issues are subsequently completed (after the completion of the TEFRA issues discussed in paragraph (3) above) and there are no remaining open TEFRA linkages, prepare the case for final closing as follows:

When the TEFRA issues are completed prior to the non-TEFRA issues, and the computation of the partnership item adjustments causes no change in the investor’s tax (perhaps due to an unused net operating loss or credits) the procedures are different.

If the non-TEFRA issues are completed prior to the TEFRA issues, and there are open TEFRA linkages remaining, prepare the case for partial closing as follows:

If the non-TEFRA issues and the TEFRA issues are completed at the same time, prepare the case for final closing. The appeals officer will note on the Form 5402 in remarks that this is a final closing. The appeals officer will attach Form(s) 8339 to close the appropriate TEFRA linkages on PCS. Also the appeals officer will note in the remarks section of Form 5402 that Account and Processing Support is to update PCS according to Form(s) 8339 attached. See IRM 8.19.6.9(3) for instructions for interest suspension under IRC section 6601(c).

There should be two audit statements in the file, one for the non-TEFRA adjustments and the other for the TEFRA adjustments. If there is one combined statement, there should be a statement identifying the deficiency attributable to the TEFRA issues for each partnership for each tax year.

If the non-TEFRA issues case is transferred to associate area counsel jurisdiction before all TEFRA partnership issues are resolved, Account and Processing Support will return the case to the appeals officer to take additional action. The appeals officer will take the following steps to ensure Counsel is aware of the transfer of statute responsibility for the TEFRA adjustments: