Ezel / IRS Rulings / 201007056

Six-year assessment period may apply to an adequately undisclosed income omission

Number
201007056
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
6 Years for 3 Years
Topics
Procedure, penalties, and administration
Code sections
§ 6229, § 6229(c)(2), § 6229(d), § 6110, § 6110(k)(3)
Ruling dated
January 15, 2010
Publicly released
February 19, 2010
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 2010, 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 2010
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 advised that the IRS may use the six-year assessment period under section 6229(c)(2) even when that period extends beyond the one-year suspension period in section 6229(d). The advice applies when the facts in the final partnership administrative adjustment clearly show a 25 percent understatement of gross income that the taxpayer did not adequately disclose.

Ruling snapshot

  • Question: May the IRS use the six-year assessment period for a partnership understatement that falls outside the one-year suspension period?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6229(c)(2) and 6229(d).

Full text (IRS public release)

ID:       CCA_2010011514125937                       Number: 201007056
                                                    Release Date: 2/19/2010
Office: ----------
UILC:     6229.03-01


From: -------------------
Sent: Friday, January 15, 2010 2:13:01 PM
To: --------------------
Cc: -----------
Subject: RE: 25% Omission of Income

The Service may assess based on the 6 year statute under section 6229(c)(2) even if that period is
beyond the one year suspension period of section 6229(d) if the facts in the FPAA clearly show a 25
percent understatement of gross income that was not adequately disclosed by the taxpayer.

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