CCA 200933025: Assessment timing after TEFRA carryforward proceedings

Plain-English summary

Chief Counsel Advice addressed when to assess after an earlier TEFRA proceeding generated a carryforward loss. It stated that assessing within one year was preferable when feasible, but that decisions from the Federal Circuit, D.C. Circuit, and Tax Court supported relying on the unextended section 6501 period. If the relevant year remained open based on the filing date of a return, the Service would defend an assessment made more than one year after the earlier TEFRA proceeding was completed.

Ruling snapshot

• Question: Could the Service rely on the unextended section 6501 period for an assessment after a TEFRA proceeding generated a carryforward loss?
• Outcome: Advice given
• Key authorities: IRC §§ 6229 and 6501

Full text (IRS public release)

ID: CCA-604358-09 Number: 200933025
Release Date: 8/14/2009
Office: -------------
UILC: 6229.04-00

From: --------------------
Sent: Thursday, June 04, 2009 3:58 PM
To: --------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
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Subject: RE: -----------carryover adjustment

It always best to assess within one year if feasible, but the hazards of assessing within the unextended section 6501 period are now de minimus given that the Federal Circuit, D.C. Circuit and Tax Court have all held that we can rely on the unextended section 6501 period. So if the ------- year is open based on a -
---------------return filing date, we would certainly defend the assessment if you don't assess it within one year of the completion of the earlier year TEFRA proceeding which generated the carryforward loss.