CCA 201017052: Refund reporting depends on remittances and assessments

Plain-English summary

Chief Counsel advised that whether a refund must be reported to the Joint Committee on Taxation under IRC § 6405 depends on whether the taxpayer made remittances to the IRS and the IRS made assessments to the taxpayer’s account. Once an assessment has been made, the amount is treated as a payment and may be recovered through a refund claim. Amounts shown as overpayments on a taxpayer’s return are not subject to section 6405 because the taxpayer’s self-assessment does not determine the final tax liability. The message also cited Treas. Reg. § 301.6402-4.

Ruling snapshot

• Question: When is a refund reportable to the Joint Committee on Taxation under IRC § 6405?
• Outcome: advice given
• Key authorities: IRC § 6405; Treas. Reg. § 301.6402-4

Full text (IRS public release)

ID: CCA-125102-10 Number: 201017052
Release Date: 4/30/2010
Office: --------------
UILC: 6405.00-00

From: -----------------------------
Sent: Monday, January 25, 2010 10:21 AM
To: --------------------
Cc: ------------------------------------------
Subject: Joint Committee Review of Superseding Return ----------------------

--------------- I am an attorney in the NO who handles many of the JCT cases. Your analysis is absolutely correct.

Whether a refund is reportable under IRC 6405 to the JCT turns on whether the taxpayer has made any remittances to the Service, and the Service has made assessments to the taxpayer's account. Once the Service has made an assessment, these amounts are now treated as payments and can only be recovered by claiming a refund.

Amounts claimed as an overpayment on a taxpayer's return are not subject to section 6405 because the taxpayer's self-assessment is irrelevant for purposes of the Service determining the final tax liability. Sec. 301.6402-4 makes JCT reporting inapplicable in this situation.

If you have any further questions, please advise.