CCA 200941021: An imperfect protest generally does not suspend the assessment period

Plain-English summary

This Chief Counsel advice considers whether an imperfect protest can keep the assessment limitations period open. It states that a protest responding to a 30-day letter does not suspend the section 6501 period, unlike a Tax Court petition, and ordinarily is not a refund claim because assessment has not occurred. The advice notes that an imperfect refund claim may keep the refund period open under section 6511. It does not resolve whether a timely but undeveloped protest affects an offer-in-compromise claim or a collection due process case.

Ruling snapshot

• Question: Does an imperfect protest suspend the assessment limitations period or operate as a refund claim?
• Outcome: Advice given.
• Key authorities: IRC §§ 6501, 6511, 7422, 6110(k)(3).

Full text (IRS public release)

ID: CCA_2009082716473439 Number: 200941021
Release Date: 10/9/2009
Office: ----------------------------
UILC: 7422.01-00, 6501.03-02

From: -------------------------
Sent: Thursday, August 27, 2009 4:47:38 PM
To: --------------------
Cc:
Subject: Imperfect protests

I have been trying to think of any circumstances where an imperfect protest would hold open the period of limitations for assessment and am having trouble coming up with a fact scenario. My experience is that a protest is filed in response to a 30 day letter and occurs before assessment of any tax. It's very common for a taxpayer to file an imperfect refund claim, which can hold the period of limitations open for making a refund under 6511. But a protest in response to a 30 day letter has no effect on the suspension of the 6501 period (unlike a Tax Court petition), and would not normally be considered a claim for refund because the assessment hadn't yet occurred. As far as I know it is a common practice for the Service to suspend a case administratively while a taxpayer pursues Appeals relief, but that would be in response to a 30 day letter where plenty of time remains open on the statute. (The period of limitations would continue to run, the Service just would not be working the case towards stat notice.) Whether a timely but undeveloped protest has any effect on an OIC claim or a CDP case, I can't say. You'd have to ask someone like ----------------or -----------------. Does that help?