CCA 201223016: IRS may issue separate deficiency notices for different taxes

Plain-English summary

Chief Counsel advice states that IRC § 6212(c) does not prevent the IRS from issuing deficiency notices for different taxes reported on separate returns. After a notice concerning an individual's income tax liability on Form 1040, the IRS could issue a second notice concerning excise-tax liability reported on Form 5330. The advice cites two Tax Court memorandum decisions and states that no procedures were known to require coordination of the two notices.

Ruling snapshot

• Question: Could the IRS issue a second deficiency notice for excise tax after issuing one for individual income tax?
• Outcome: Advice given, based on Tax Court interpretations of § 6212(c).
• Key authorities: IRC § 6212(c); Gross v. Commissioner, T.C. Memo. 1996-404; Towe v. Commissioner, T.C. Memo. 1992-689

Full text (IRS public release)

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ID: CCA_2012051115384203 Number: 201223016
Release Date: 6/8/2012
Office: --------------
UILC: 6212.07-00

From: --------------------
Sent: Friday, May 11, 2012 3:38:45 PM
To: ----------------------
Cc: ----------------------
Subject: RE: 6212, income tax and excise tax under 4973 and 4975

You are correct that the Tax Court interprets section 6212(c)’s prohibition to not apply to deficiencies based on two different taxes reported on two separate returns. Gross v. Commissioner, T.C. Memo. 1996-404; Towe v. Commissioner, T.C. Memo. 1992-689. Accordingly, ---------- issuance of a statutory notice of deficiency for the taxpayers’ individual income tax liability (reported on a Form 1040) does not restrict the Service from issuing to the taxpayer a second statutory notice of deficiency related to the taxpayer’s excise tax liability (Form 5330). We are not aware of any procedures that require the coordination of the two notices. Please let me know if you need anything further