CCA 201013046: IRS addresses TEFRA limitation-period suspension after an untimely petition

Number

201013046

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Suspension of Statutory Period

Topics

Procedure, penalties, and administration

Code sections

§ 6226, § 6229, § 6503, § 6110

Ruling dated

March 2, 2010

Publicly released

April 2, 2010

Source

View Official PDF

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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.

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 whether filing an untimely petition in a TEFRA case suspends the statute of limitations. It stated that the suspension rule applies to any petition under IRC § 6226, regardless of whether the petition is timely or valid, and that the suspension continues until the court’s decision becomes final and for one year afterward. The advice also cited IRC § 6503(a), which provides a related suspension rule for deficiency cases. It referred to the Tax Court’s discussion in Rhone-Poulenc Surfactants & Specialties, L.P. v. Comm’r.

Ruling snapshot

Question: Does an untimely TEFRA petition suspend the applicable statute of limitations?
Outcome: Advice given
Key authorities: IRC §§ 6226, 6229(d), and 6503(a); 1997 Bluebooks Pt. 2; Rhone-Poulenc Surfactants & Specialties, L.P. v. Comm’r, 114 T.C. 533 (2000)

Full text (IRS public release)

ID: CCA_2010030208592154 Number: 201013046
Release Date: 4/2/2010
Office: --------------
UILC: 6229.04-00

From: --------------------------
Sent: Tuesday, March 02, 2010 8:59:24 AM
To: -----------------
Cc: --------------------
Subject: RE: TEFRA Issue

Yes. See 1997 BLUEBOOKS Pt. 2, 1997-3 C.B. 116, Title XII, Para. C.2.c.i., Suspend Statute when an untimely petition is filed ("The Act conforms the suspension rule for the filing of petitions in TEFRA cases with the rule under section 6503(a) pertaining to deficiency cases. Under the provision, the statute of limitations in TEFRA cases is suspended by the filing of any petition under section 6226, regardless of whether the petition is timely or valid, and the suspension will remain in effect until the decision of the court becomes final, and for one year thereafter. Hence, if the statute of limitations is open at the time that an untimely petition is filed, the limitations period would no longer continue to run and possibly expire while the action is pending before the court.")..

See also Rhone-Poulenc Surfactants & Specialties, L.P. v. Comm'r, 114 T.C. 533, 552-553 (2000)("[S]ection 6229(d) suspends the running of any applicable period of limitations when an FPAA is issued and during the pendency of litigation in this Court . . . .")

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