CCA 200939021: IRS could issue a second notice of deficiency

Plain-English summary

An IRS attorney considered whether the Service could issue a second notice of deficiency. The attorney advised that the Code did not prohibit a second notice merely because the taxpayer had not petitioned the Tax Court under section 6212(c) or had not filed a return, assuming the tax had not already been assessed. The attorney therefore found no restriction on sending a second notice under those conditions.

Ruling snapshot

• Question: Could the IRS send a second notice of deficiency when no return had been filed and the taxpayer had not petitioned the Tax Court?
• Outcome: Advice given.
• Key authorities: IRC § 6212(c); IRM 4.8.9.24.3.

Full text (IRS public release)

ID: CCA_2009071708502846 Number: 200939021
Release Date: 9/25/2009
Office: --------------
UILC: 6212.00-00

From: ------------------
Sent: Friday, July 17, 2009 8:50:32 AM
To: ------------------
Cc:
Subject: NOD IRM 4.8.9.24.3

Hi -------- -

In regards to your follow-up question, the authority to issue a second NOD exists in the sense that there is no restriction in the Code prohibiting such an action based on the fact that the taxpayer has neither petitioned the Tax Court as stipulated § 6212 (c) nor filed a return, in which case, the SOL would no longer be open. Thus, there is nothing barring the Service's ability to send a second notice based on these conditions. (This is also assuming the tax has not been assessed)

Is this more helpful? The question, under what authority does the Service have to issue a second NOD, may be interpreted as what is stopping the Service from issuing a second Notice of Deficiency? Based on the background information, there are no restrictions in the Code that would prohibit sending a second NOD because (a) a return has not been filed, and (b) the taxpayer has not petitioned the Tax Court.

Please don't hesitate to contact me at --------------------or by email should you have further questions or issues.

Thanks,
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