CCA 201052011: The assessment period for the employee share of FICA tax had expired

Plain-English summary

Chief Counsel Advice considered the assessment period for the employee share of FICA tax. It concludes that the IRS could not assess the tax because the limitations period had expired when the decision document was entered. The period generally runs from the employer's filing of Form 941, with a special April 15 filing date for an early return under IRC § 6501(b)(2). The advice applies the three-year assessment period in section 6501(a) to the described Forms 941.

Ruling snapshot

• Question: Could the IRS assess the employee share of FICA tax after the limitations period had expired?
• Outcome: Advice given
• Key authorities: IRC §§ 6501(a) and 6501(b)(2)

Full text (IRS public release)

ID: CCA_2010062816124170 Number: 201052011
Release Date: 12/30/2010
Office:
UILC: 6501.00-00

From: ----------------------
Sent: Monday, June 28, 2010 4:12:46 PM
To: ---------------------
Cc: ---------------
Subject: Time for assessment of FICA tax

In the case we discussed by telephone, you will not be able to assess the employee share of the FICA tax, because the statute of limitations period had already expired at the time the decision document was entered.

The statute of limitations period under IRC § 6501(a) runs from the date of the employer's filing of Form 941, the required return for FICA tax. Under § 6501(b)(2), if the return of FICA tax (imposed by chapter 21) is filed before April 15 of the succeeding calendar year, it is considered filed on April 15 of that year. Thus, if the Forms 941 for periods ending in ------- and ------- were timely filed (as I understand they were), the three-year statute of limitations period for assessment of the tax ended before the decision document was entered.

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