Ezel / IRS Rulings / 200933027

CCA 200933027: Assessment and refund limitation periods for AARs

Number
200933027
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Period of Limitations for Making Assessments
Topics
Procedure, penalties, and administration
Code sections
§ 6230, § 6229, § 6501, § 6110
Ruling dated
July 20, 2009
Publicly released
August 14, 2009
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 2009, 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 2009
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 Advice addressed the limitation periods for making an assessment or issuing a refund after an administrative adjustment request. It stated that the Service generally had two years from the AAR filing date to issue a refund and three years from the original partnership and partner return dates to make resulting assessments. An AAR generally did not extend the assessment period, but one filed just before expiration could extend it by 60 days under section 6501(c)(7). The advice recommended protecting both statutes with the specified assessment and refund forms because an apparent overassessment could result in an assessment for a partner who reported inconsistently.

Ruling snapshot

  • Question: What assessment and refund limitation periods apply when the Service examines an AAR?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6230(d)(2), 6229, 6501, and 6501(c)(7)

Full text (IRS public release)

ID: CCA_2009072010105637 Number: 200933027
Release Date: 8/14/2009
Office: --------------
UILC: 6229.00-00

From: -------------------
Sent: Monday, July 20, 2009 10:10:58 AM
To: -------------------------
Cc: -----------
Subject: RE: SOL of AAR

It depends on whether you want to make an assessment or issue a refund. Under section 6230(d)(2), we have two years to issue a refund from the date the AAR is filed. Under section 6229 and 6501 we generally have 3 years for the date of the original partnership and partner return to make any resulting assessments. The AAR generally does not extend the period for assessment unless its filed just before the assessment statute expires. In that case, section 6501(c)(7) can extend the assessment period for an additional 60 days.

Sometimes what appears to be an overassessment AAR can actually result in an assessment for a partner who did not report consistently with the original partnership return. So if we examine the AAR, we should protect both statutes using Forms 872-P (assessments) and Form 9247 and 9248 (refunds).

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