CCA 200914039: A defaulted deficiency notice did not prevent extending the assessment period

Plain-English summary

Chief Counsel considered whether a taxpayer and the IRS could extend the assessment limitations period after the IRS issued a statutory notice of deficiency on which the taxpayer defaulted. The advice found no rule prohibiting such an agreement. Under section 6501(c)(4), the parties could execute an extension as long as the limitations period was still open at that time. The short email provides no additional facts about the assessment or proposed extension.

Ruling snapshot

• Question: Could the taxpayer and IRS extend the assessment period after issuance and default of a statutory notice of deficiency?
• Outcome: Advice given: yes, provided the limitations period remained open when the extension was executed.
• Key authorities: IRC § 6501(c)(4).

Full text (IRS public release)

ID: CCA_2009030514582452 Number: 200914039
Release Date: 4/3/2009
Office: --------------
UILC: 6501.00-00

From: -----------------------
Sent: Thursday, March 05, 2009 2:58:33 PM
To: ------------------------
Cc:
Subject: RE: Defaulted SND status

This follows up my voicemail message confirming that nothing prohibits the taxpayer and the Service from
agreeing to extend the assessment statute of limitations under section 6501(c)(4) after the issuance of a
SND (on which the taxpayer defaults) provided the limitations period is still open when the extension is
executed.