IRS Field Attorney Advice

IRS Legal Memo on Disclosure Statement and IRC Section 6103

The IRS issued Field Attorney Advice (FAA) GL-104768-24 addressing disclosure of partner personal information within partnership tax proceedings. The memo clarifies when sharing such information is permissible under IRC Section 6103, distinguishing between information received from outside the IRS and information generated internally.

IRS Memo on Statute of Limitations for 1120F SFR

The IRS Field Attorney Advice memo clarifies that a foreign corporation that incorrectly filed as a domestic insurance company (Form 1120-PC) but should have filed as a foreign corporation (Form 1120-F) will have the same statute of limitations as the incorrectly filed return. This applies even if the IRS files the Form 1120-F under IRC § 6020(b).

IRS Legal Advice: NOL Carryback After Spin-Off

The IRS Office of Chief Counsel issued Field Attorney Advice stating that a taxpayer should not be allowed to allocate cumulative income from certain subsidiaries to a successor entity after a spin-off transaction if those subsidiaries remained owned by the taxpayer. This advice clarifies that such an allocation would be an inappropriate expansion of the Separate Return Limitation Year (SRLY) limitation.

IRS Legal Advice on Net Operating Loss Deductions

The IRS Office of Chief Counsel has issued legal advice regarding a taxpayer's application for a tentative refund based on a net operating loss (NOL) carryback. The advice addresses the taxpayer's NOL deduction claim, which stems from losses incurred by an S corporation and relates to a bankruptcy case.

IRS Field Attorney Advice: LLC Units Transfer to Tax-Exempt Entity

The IRS issued Field Attorney Advice (FAA) regarding a purported transfer of LLC units to a tax-exempt entity. The advice concludes that the transfer lacks economic substance and should not be respected for federal income tax purposes, meaning partnership income allocated to the transferred interests is taxable to the transferors.