CCA 200848026: Form 872 signatures must precede the assessment deadline

Plain-English summary

Chief Counsel found no problem with an unspecified Form 872 arrangement if both signatures were placed on the form before the assessment period expired. The advice also required no evidence that the taxpayer had tried to withdraw its signature. Counsel gave a letter or statements that the taxpayer no longer wanted the extension as examples of attempted retraction. The short email does not describe the underlying arrangement in more detail.

Ruling snapshot

• Question: Was the described Form 872 arrangement acceptable for extending the assessment period?
• Outcome: Advice given. It was acceptable if both signatures preceded the assessment deadline and the taxpayer had not tried to retract its signature.
• Key authorities: IRC § 6501

Full text (IRS public release)

ID: CCA_2008070715573250 Number: 200848026
Office: --------------
Release Date: 11/28/2008

UILC: 6501.00-00

From: -----------------------
Sent: Monday, July 07, 2008 3:57:34 PM
To: ------------------------
Cc: ------------------
Subject: RE: Form 872 question

I am not aware of any problem with this as long as both signatures on the Form 872 occur prior to the assessment expiration date and there is no evidence that the taxpayer has attempted to retract its signature (such as sending a letter or making statements saying that the taxpayer no longer wants to agree to an extension). Just let me know if I can be of further assistance. Thanks.