CCA says the additional estate tax assessment period cannot be extended by agreement

Number

201240023

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Qualified Family Business Interests; Limitations on Assessment and Collection (Barred v. Not Barred)

Topics

Estate tax Procedure, penalties, and administration

Code sections

§ 2057(f)(2), § 2057(i)(3)(k), § 2032A(f), § 6501(c)(4)

Publicly released

October 5, 2012

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 2012, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

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 Advice addressed whether the limitations period for the additional estate tax under section 2057(f)(2) could be extended by agreement. The advice concluded that it could not. It reasoned that section 2057(i)(3)(k) applies the additional three-year assessment period in section 2032A(f), and that section 2032A(f) does not authorize an agreed extension. The advice also noted that section 6501(c)(4) expressly excludes estate tax under chapter 11 from taxes whose limitations periods may be extended by agreement.

Ruling snapshot

Question: Can the limitations period for additional estate tax under section 2057(f)(2) be extended by agreement?
Outcome: Advice given
Key authorities: IRC §§ 2057(f)(2), 2057(i)(3)(k), 2032A(f), and 6501(c)(4)

Full text (IRS public release)

ID: CCA_2012082115290046 Number: 201240023
Release Date: 10/5/2012
Office: -------------
UILC: 2057.00-00, 6501.00-00

From: ----------------
Sent: Tuesday, August 21, 2012 3:29:03 PM
To: ----------------
Cc: -----------------------
Subject: Section 2057 and 6501(c)(4)

This email is to confirm our prior telephone conversation. The applicable limitations period for the “additional estate tax” under section 2057(f)(2) cannot be extended by agreement. Pursuant to section 2057(i)(3)(k), the additional three year period for assessment provided for in section 2032A(f) applies to the additional estate tax under section 2057(f)(2). There is nothing in section 2032A(f) that states that this period can be extended by agreement. Moreover, the period in section 2032A(f) is a minimum period of limitations, but it is not mutually exclusive from the general limitations period in section 6501. The language of section 6501(c)(4) explicitly excepts “estate tax provided in chapter 11” from those taxes for which the limitations period may be extended by agreement. Although section 2057(f)(2) is an “additional” estate tax, it is still a chapter 11 estate tax provision subject to this restriction.

Please let me know if you have any additional questions in this matter.

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