CCA 201020010: Counsel discussed who may sign a government employer's tax documents

Plain-English summary

In an internal Chief Counsel email concerning an individual closing-agreement case, the sender stated that the regulations under IRC § 6501(c)(4) do not specify who may sign a consent. The email cited Rev. Rul. 83-41 for looking to the person authorized to sign the relevant tax returns, and noted that the rules for signing federal-agency tax returns are broad and flexible. It cited §§ 3404 and 3122, which allow returns to be made by specified officers, employees, agency heads, or designated agents with responsibility for wage payments or services.

Ruling snapshot

• Question: Who may execute a consent under IRC § 6501(c)(4) and sign federal-agency employment-tax returns?
• Outcome: Advice given
• Key authorities: IRC §§ 3122, 3404, and 6501(c)(4); Rev. Rul. 83-41

Full text (IRS public release)

ID: CCA_2010031811580332 Number: 201020010
Release Date: 5/21/2010
Office: -----------------------------
UILC: 3404.00-00

From: --------------------
Sent: Thursday, March 18, 2010 11:58:10 AM
To: ----------------------------------------------------------------------------------------------------- Cc: Subject: ------------- Individual Closing Agreement Case

If I remember correctly, the regulations under 6501(c)(4) do not specify who may sign consents executed under that section, and so Rev. Rul. 83-41 says we look to the party that has authority to sign the tax returns to execute consents. I would want to confirm this with ------. The rules about who has authority to sign tax returns on behalf of federal agencies are very broad and flexible. See, for example, section 3404 which says that the return may be made by any officer or employee of the US, or of any agency or instrumentality of the US, having control of the payment of wages, or appropriately designated for that purpose. See also section 3122, which says that the return can be made by the head of the federal agency or instrumentality having the control of the performance of services, or by such agents as such head may designate.