CCA 201048041: Determination-letter revocation would apply prospectively after notice

Number

201048041

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Prospective Application of Rulings

Topics

Procedure, penalties, and administration

Code sections

§ 7805

Ruling dated

October 20, 2010

Publicly released

December 3, 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.

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 discusses how a determination letter could be revoked prospectively. The memorandum states that the revocation would be effective only after the taxpayer was notified of the change in opinion. On that view, the revocation would not directly affect the taxpayer, although it could theoretically affect another party if that party later persuaded a court that the taxpayer should restore a benefit. The memorandum points to Treas. Reg. § 601.201(l) and (m), which relate to § 7805(b).

Ruling snapshot

Question: When would a prospective revocation of a determination letter take effect?
Outcome: advice given
Key authorities: IRC § 7805(b); Treas. Reg. § 601.201(l) and (m).

Full text (IRS public release)

ID: CCA_2010102015133057 Number: 201048041
Release Date: 12/3/2010
Office: -------------------------
UILC: 7805.01-01

From: ---------------
Sent: Wednesday, October 20, 2010 3:13:39 PM
To: --------------------------------------------
Cc:
Subject: RE: ----------------------------------------------- Revised Memo

---------------, subject to anything that ----------- wishes to add I believe when we talk about prospective revocation of a determination letter what we had in mind was that the revocation would only be effective after the taxpayer is notified of the change in opinion. This would appear to mean that the revocation would not directly impact the taxpayer though it could theoretically impact ---------- if he is ever able to persuade a court that the taxpayer should restore his benefit. The agent refers to the plan year ending ----
---------- as probably the employer's final 5500 return. I am not sure what year that is though I thought all plan assets were returned to the taxpayer in -------?

As to a citation for prospectively revoking the letter, see Treas. Reg. Sec. 601.201(l) and (m) which relates to IRC section 7805(b). I have not checked the IRM but I would imagine there must be something in it that deals with 7805(b) matters.

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