CCA 1024046: Advice discusses the trigger date for a section 7430 request

Plain-English summary

The Office of Chief Counsel discussed a request for administrative costs under IRC § 7430. The advice states that most such requests are handled by the Appeals office and that the administrative-proceeding date is generally the earlier of the taxpayer's receipt of the Appeals decision or the notice of deficiency. It also discusses when the 90-day period would likely begin, concluding that the last IRS correspondence resolving final adjustments and interest, or a letter conveying the final outcome if no other IRS notice is issued, would be the likely trigger. The advice notes that the relevant personnel lacked delegated authority to make the determinations.

Ruling snapshot

• Question: What event is likely to trigger the 90-day period for a section 7430 administrative-cost request?
• Outcome: Advice given
• Key authorities: IRC § 7430

Full text (IRS public release)

ID: CCA-101664-09 Number: 201024046
Release Date: 6/18/2010
Office: -----------
UILC: 7430.00-00

From: -----------------
Sent: Thursday, October 16, 2008 6:45 PM
To: --------------------
Cc: -----------------------------------------
Subject: RE: more on 7430 and audit recon ---------

Just got off the phone with -----------------------------, special counsel in --------------------------------------------- (a
division within counsel HQ with subject matter jurisdiction over 7430).

---------------------------------------------------------------------------------------------------------------------------------. He
indicated that IRS rarely receives requests for administrative costs. Most are handled by the Appeals
office because the administrative proceeding date is the earlier of the date of the receipt by the tp of the
notice of the decision of the office of appeals or the date of the notice of deficiency. So where the
appeals office has some experience in handling these requests, it is very likely that the personnel in audit
reconsideration may have never seen one and may need to seek counsel advice.

As to the trigger date, -------- agreed that the 90 days will likely begin with the last correspondence coming
from IRS resolving the final adjustments and interest dispute, not the RAR. ---------------------------------------

------------------------If as you believe, IRS will not be issuing anything and your letter will convey the final
outcome, then we agree that letter is the document most likely to trigger the 90-day period. It is really
IRS's obligation to notify the tp of the final outcome. You do not have the delegated authority to make any
of those determinations so it seems very odd that TAS correspondence would be the only notification to
the taxpayer.

I am available to discuss further on Friday (I have meetings from 9:30 to 11:30 and 2 to 3). Or perhaps I
will see you at the Leadership Conference next week. -------------------------------------------------------------------

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