CCA 201121015: additional statutory-notice days do not extend the agreed limitations period

Plain-English summary

Chief Counsel addressed how to calculate the statute of limitations when the parties had an agreement under Form 872 and a state notice was later rescinded. The advice stated that the additional 60-day period associated with a statutory notice does not apply when there is no statutory notice that can be petitioned in Tax Court. Instead, the days remaining on the agreed limitations period are added to the date the state notice is rescinded.

Ruling snapshot

• Question: Does the additional statutory-notice period extend a limitations period agreed under Form 872?
• Outcome: Advice given.
• Key authorities: IRC § 6214; Form 872.

Full text (IRS public release)

ID: CCA_2011042115354843 Number: 201121015
Release Date: 5/27/2011
Office: ----------------------------
UILC: 6214.01-00

From: --------------
Sent: Thursday, April 21, 2011 3:35:50 PM
To: -----------------------
Cc:
Subject: RE: Statute of Limitations Question

Out of curiosity, why does the AO want to calculate the SOL without regard to the 872? If the SOL expires on 7/31 per agreement then the SOL under the Code is not relevant, is it?

The additional 60 days would not be tacked on, as there is no stat notice that can be petitioned (the additional 60 days provides a period for petitioning the Tax Court). As a result, the number of days remaining on the SOL would be tacked on to the day that the state notice is rescinded.