CCA 201052016: Assessment may proceed for an uncontested tax year during a Tax Court case

Plain-English summary

Chief Counsel Advice considered whether assessment could proceed when a taxpayer had filed a Tax Court petition but did not contest an entire tax year. The advice states that the IRS should assess an uncontested year. It explains that the assessment remains subject to abatement if the taxpayer later shows that omitted years were inadvertently left out and the court permits an amended petition. The reasoning relies on the assessment restriction in IRC § 6213(a) and the rule in § 6665 that additions to tax and penalties are assessed and collected like taxes.

Ruling snapshot

• Question: May the IRS assess an entire tax year that was not contested in a Tax Court petition?
• Outcome: Advice given
• Key authorities: IRC §§ 6213(a) and 6665

Full text (IRS public release)

ID: CCA_2010092910421226 Number: 201052016
Release Date: 12/30/2010
Office: --------------
UILC: 6213.00-00

From: -------------------
Sent: Wednesday, September 29, 2010 10:42:18 AM
To: -----------------------
Cc:
Subject: RE: Assessment of uncontested liabilities

It covers situations 1 and 2. With 3, if the entire year is not contested you should assess. That assessment would be subject to abatement if it turns out the taxpayer inadvertently left out the omitted years and the court allowed the taxpayer to amend the petition to raise the other years in the notice (as is likely). Our rationale is based on the restriction on assessment under sec. 6213(a) which restricts assessment after a petition has been filed and the fact that additions to tax and penalties are assessed and collected in the same manner as taxes under sec. 6665.