6231(c)-5T, the IRS argued that it had sole discretion as to whether and when to remove a TMP
because of a criminal tax investigation.
A partnership may designate a TMP
after filing the partnership return for a tax year by submitting a statement signed by general partners who held more than 50% of the aggregate interest in partnership profits held by all general partners at the close of the tax year.
As a practical matter, he has little incentive to deny the TMP
the right to enter into a settlement agreement, since he would be offered an administrative settlement consistent with that offered to the other partners.
As a result, in every case in which the AAR is expected to result in a net reduction in tax to the affected partners, the TMP
or other partner filing the AAR should always monitor the two-year period to ensure that, if necessary to secure the desired changes in the amended return, either a petition is filed before the two-year period runs or, alternatively, an extension is executed.
rules will also apply to previously existing entities that receive "a substantial transfer of cash or other property" after 1991, beginning on the day of that substantial transfer.
Note: The TMP
must be a partner in the partnership.