Ezel / IRS Rulings / 1223019
Chief Counsel Advice 1223019 Released June 8, 2012 Advice

CCA 1223019: IRS clarifies an excise-tax overpayment credit

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This page covers one taxpayer's ruling from 2012, 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 2012
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 resolved one taxpayer's situation on its specific facts, 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 advice corrected an earlier analysis concerning whether an excise-tax overpayment could be credited against another excise-tax liability. The advice states that if the taxpayer paid the liability before the assessment period expired, Rev. Rul. 85-67 would apply, the payment would not be treated as an overpayment for purposes of § 6401(a), and § 6514(b) would not bar the credit. On that basis, § 6402(a) would permit the offset even if the liability had not been assessed.

Ruling snapshot

  • Question: Could an excise-tax overpayment be credited against another excise-tax liability when the liability was paid within the assessment period?
  • Outcome: Advice given, correcting an earlier analysis based on an incorrect factual assumption.
  • Key authorities: IRC §§ 6401, 6402, and 6514; Rev. Rul. 85-67

Full text (IRS public release)

ID: CCA-210240-12 Number: 201223019
Release Date: 6/8/2012
Office: ----------------------------
UILC: 6402.00-00

From: -------------------
Sent: Friday, February 10, 2012 2:40 PM
To: ------------
Cc: ----------------------------
Subject: Lewis v. Reynolds

Hi ------ - looking at this again, I either misread or misunderstood your original facts. I didn't realize
payments were made within the ASED period. Thus, I stated below that "your question does not involve
a payment of the underpaid excise tax made within the assessment period so Rev. Rul. 85-67 is
inapplicable."

If TP did pay the tax before the ASED went, then it would seem that 85-67 would apply. The payment
would not be considered an overpayment for purposes of section 6401(a), and section 6514(b) would not
prohibit the credit. As such, 6402(a) would apply to permit offset of an overpaid excise tax of one type
against a liability for another excise tax type, where the taxpayer paid the liability within the ASED, even if
we never assessed that liability. The analysis in my second paragraph below is incorrect, as it is based
upon the assumption that there was no payment made within the assessment period.

I apologize for the confusion.

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