Ezel / IRS Rulings / 200848067

CCA 200848067: Partial abatement should align the assessment with a final judgment

Number
200848067
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Judgments
Topics
Procedure, penalties, and administration
Code sections
§ 7402
Ruling dated
August 19, 2008
Publicly released
November 28, 2008
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2008
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised waiting until a judgment became final 60 days after entry, assuming no appeal, and then promptly making a partial abatement so the assessment on the IRS records matched the judgment to be paid. The released email is internally unclear about the direction of the adjustment: it first says the judgment exceeds the original assessment, but then instructs the IRS to abate any assessment amount exceeding the original assessment and says the remaining amount should equal the judgment. The intended operational endpoint is clear, even though those comparisons cannot all be reconciled from the text.

Ruling snapshot

  • Question: How should the IRS records be adjusted after the judgment becomes final?
  • Outcome: Advice given. Make a prompt partial abatement so the recorded assessment equals the final judgment, although the released explanation contains inconsistent amount comparisons.
  • Key authorities: IRC § 7402.

Full text (IRS public release)

ID: CCA-819100-08 Number: 200848067
Office: --------------
Release Date: 11/28/2008

UILC: 7402.02-00

From: -------------------
Sent: Tuesday, August 19, 2008 10:06 AM
To: -------------------
Cc:
Subject: RE: Ogden Processing Concern

------,

I think you had it right in your initial response - as I understand it, the final judgment amount exceeds the original assessment. The judgment will be final 60 days after entry, assuming neither party appeals (which I assume will not happen here). Subsequent to that date (although there is no fixed time for doing so, it should be done as soon as possible) the IRS should do a partial abatement, that is, the IRS should abate any assessment amount that exceeds the original assessment - the result being that the resulting assessment amount still on the books for -------will be equal to the judgment amount - which will presumably be satisfied when -------makes payment.

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