Ezel / IRS Rulings / 1304007
Chief Counsel Advice 1304007 Released January 25, 2013 Advice

Chief Counsel approves an IRS procedure for extending the erroneous-refund suit period

Apply this to your situation

This page covers one taxpayer's ruling from 2013, 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 2013
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 discusses an IRS procedure under which a taxpayer may waive a defense based on the period in IRC § 6532(b) for the government to sue to recover an erroneous refund. The advice relies on United States v. National Steel and distinguishes the authority needed for a taxpayer to waive a defense from the authority under IRC § 6532(a)(2) for the government to agree to be sued. It states that the procedure had appeared in the Internal Revenue Manual since at least 1999. The advice also notes that an alternative procedure using a modified Form 907 was removed, although a waiver using that procedure had been accepted in another case.

Ruling snapshot

  • Question: May a taxpayer waive a defense based on the IRC § 6532(b) period for the government to recover an erroneous refund?
  • Outcome: Advice given, Chief Counsel approved the described IRS procedure.
  • Key authorities: IRC §§ 6532 and 7405; United States v. National Steel, 75 F.3d 1146 (7th Cir. 1996); United States v. Goertz, 2009 WL 1664085 (W.D. Tex. 2009)

Full text (IRS public release)

ID: CCA_2012120714350826 Number: 201304007
Release Date: 1/25/2013
Office: -------------
UILC: 6532.03-00

From: ------------------
Sent: Friday, December 07, 2012 2:35:25 PM
To: --------------------
Cc:
Subject: FW: 6532(b)

We've approved the IRM procedure based on U.S. v. National Steel, 75 F.3d 1146 (7th Cir. 1996). IRC
6532(b) doesn’t specifically provide for an extension of the period for the government to file under IRC
7405, but we don’t believe statutory authorization is needed for the taxpayer to waive a defense; in
contrast, we see IRC 6532(a)(2) as providing necessary authorization for the government to agree to be
sued. The procedure has been in IRM 5.1.8 since 1999 or earlier. Another IRM had provided,
alternatively, that waiver could be made on a modified Form 907 as opposed to putting it on a blank piece
of paper per Exhibit 5.1.8-1. The procedure for using a modified Form 907 to extend the IRC 6532(b)
period has been removed, but a wavier following that procedure was accepted by the court in U.S. v.
Goertz, Not Reported in F.Supp.2d, 2009 WL 1664085 (W.D.Tex. 2009).

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2013, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.