CCA 200920048: Unclear summons facts did not support suspending the assessment period

Plain-English summary

Chief Counsel considered whether section 7609(e) suspended the period for assessing tax against certain individuals. The email said suspension would require the individuals to have been entitled to and given notice under section 7609(a), followed by an exercise of the right to intervene or start a proceeding to quash. On the limited facts provided, Counsel could not say those conditions had been met and concluded that suspension did not appear to apply. Counsel preferred obtaining written consent to extend the assessment period under section 6501(c)(4) or issuing a statutory notice of deficiency. That approach avoided depending on a suspension argument whose factual basis was uncertain.

Ruling snapshot

• Question: Did section 7609(e) suspend the assessment limitations period on the undisclosed summons facts?
• Outcome: Advice given: suspension did not appear to apply, and the IRS should use a consent extension or notice of deficiency rather than rely on the uncertain argument.
• Key authorities: IRC §§ 6501(c)(4), 7609(a), 7609(e).

Full text (IRS public release)

ID: CCA_2009040613383251 Number: 200920048
Release Date: 5/15/2009
Office: --------------
UILC: 7609.04-00

From: -------------------
Sent: Monday, April 06, 2009 1:38:34 PM
To: ------------------
Cc:
Subject: 7609 question

Hello,

Given the facts you provided, it would not appear that 7609(e) would suspend the period of limitations to assess tax for the individuals at issue. For 7609(e) to apply, the individuals would have had to been entitled to and provided notice under 7609(a), and then the taxpayer would have had to exercise the right to intervene or begin a proceeding to quash under 7069(b). Without more information, we can not say that these conditions have been satisfied.

Generally, we prefer to get written consent to extend the period of limitations under 6501(c)(4) or to send out the SNOD than to rely on a legal argument that the period of limitations has been suspended where it is unclear whether the facts support such an argument.

Please contact me if you have any further questions.