CCA 200927036: Form 872-F cannot extend an assessment period that already expired

Plain-English summary

Chief Counsel reviewed a Form 872-F covering two tax years. It was valid for the second year, which remained open when signed, but could not revive the first year’s expired assessment period. A replacement form limited to the second year was unnecessary because it would add nothing. The email also explains that the first year’s two-year refund period runs from settlement under section 6230(c)(2)(B), rather than from the administrative adjustment request under section 6228(a)(2). The form bound only the partner who signed it; a tax matters partner could not sign it for other partners.

Ruling snapshot

• Question: What effect does Form 872-F have when one covered year’s assessment period had already expired?
• Outcome: Advice given: effective only for the open year and the signing partner
• Key authorities: IRC §§ 6229, 6230(c)(2)(B), 6228(a)(2)

Full text (IRS public release)

ID: CCA_2009051208454037 Number: 200927036
Office: --------------
Release Date: 7/2/2009

UILC: 6229.07-00

From: -------------------
Sent: Tuesday, May 12, 2009 8:45:45 AM
To: --------------------
Cc: -------------------------------------------------
Subject: RE: AAR ----- 872-F

The Form 872-F is only valid for the second year which was open when the form was executed. It is invalid for the first year which had already expired for assessment purposes when the form was executed - you can't extend an expired assessment statute. It is not necessary to get the Form reexecuted for the second year only, as you suggest, since a new Form 872-F would not give you anything more than you already have. As you note, you already have 2 years to issue a refund for the first year, but that 2 year period runs 2 years from the date of the settlement under section 6230(c)(2)(B), not 2 years from the AAR under section 6228(a)(2).

The Form is only valid for the partner who executed it. The TMP cannot execute this form on behalf of any other partner.