CCA_2009010908430337
————-
6231.07-00
Number: 200910039
Release Date: 3/6/2009
From: ——————–
Sent: Friday, January 09, 2009 8:43:06 AM
To: ——————-
Cc: ————
Subject: RE: TEFRA questions
An IRA is a trust (see I.R.C. 408) and its custodian is a trustee for purposes of federal law. Thus, it is a
“person” as defined under I.R.C. 7701(a)(1) and a “United States Person” under I.R.C. 7701(a)(30)(E).
Thus, an IRA may be designated as Tax Matters Partner under Treas. Reg. Section
301.6231(a)(7)-1(b)(2). It would execute its TMP function through its trustee. Even if
the IRA was not a United States person, the restriction under the forgoing regulation
applies only if there is a United States person who is eligible. Under your facts, there
are no non-IRA partners, so the restriction in question (limiting designations to U.S.
persons) does not apply in any event.
I agree that the partnership has probably validly designated the TMP on the partnership
return if the person signing the return is a “member-manager” as defined under Treas.
Reg. 301.6231(a)(7)-2(b)(3) or is authorized by one of more member-managers to sign
the return pursuant to the LLC operating agreement