Ezel / IRS Rulings / 201112014

CCA 201112014: Offer in compromise for a single-member LLC owner's employment taxes

Number
201112014
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Offers in Compromises
Topics
Procedure, penalties, and administration
Code sections
§ 7122, § 6110
Ruling dated
March 19, 2010
Publicly released
March 25, 2011
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 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
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 analyzed an offer in compromise submitted by the owner of a single-member LLC to settle employment taxes for periods before January 1, 2009. The advice stated that, under Notice 99-6, the owner is treated as the taxpayer for those employment taxes and is ultimately liable for the related payments and filings. It noted that the employment taxes had been assessed under the LLC's name and employer identification number, and discussed whether that assessment also constituted a valid assessment against the owner.

Ruling snapshot

  • Question: How should an offer in compromise for a single-member LLC's pre-2009 employment taxes be treated when the assessment is under the LLC's name and EIN?
  • Outcome: Advice given.
  • Key authorities: IRC § 7122; Notice 99-6; Littriello v. United States, 484 F.3d 372 (6th Cir. 2007); McNamee v. Internal Revenue Service, 488 F.3d 100 (2d Cir. 2007); Kandi v. United States, 295 Fed. Appx. 873 (9th Cir. 2008)

Full text (IRS public release)

ID: CCA-319917-10 Number: 201112014
Release Date: 3/25/2011
Office: ----------
UILC: 7122.00-00

From: -------------------
Sent: Friday, March 19, 2010 9:17 AM
To: -----------------
Cc: ------------------------------------------------------------ Subject: --------------------, -----------------; Offer in Compromise Question

--------

This case involves an Offer In Compromise (OIC) submitted by the owner of a single-member LLC to settle employment taxes relating to tax years ------ and ------. Pursuant to Notice 99-6 (applicable to wages paid prior to January 1, 2009), the owner of the single-member LLC is considered the taxpayer for purposes of employment taxes and is ultimately liable for employment tax payments and filings. See Littriello v. United States, 484 F.3d 372 (6th Cir. 2007); McNamee v. Internal Revenue Service; 488 F.3d 100 (2nd Cir. 2007); Kandi v. United States, 295 Fed.Appx. 873 (9th Cir. 2008).

In this case, the employment taxes were assessed under the name and EIN of the LLC. While we believe such an assessment also constitutes a valid assessment against the owner, see CCA- 715163-08 (see attached), -------------------------------------------------------------------------------------
------------------------------------------------------. In addition, we note that the Form 7429, Offer Acceptance Report, prepared by Appeals in this case was prepared in the name and EIN of the LLC. ---------------------------------------------------------------------------------------------------------

If you have any questions, please do not hesitate to ask

Regards,
----------------
-------------
-----------------

Attachment: As stated

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace