Ezel / IRS Rulings / 1312039
Chief Counsel Advice 1312039 Released March 22, 2013 Advice

CCA 1312039: employment tax disputes followed the refund claim process

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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 advised on the procedure for disputing employment tax on amounts paid to employees. If the taxpayer disagreed, the tax would be assessed, paid on Form 941, and challenged through a refund claim on Form 941-X. If the IRS did not act on the claim within six months or issued a notice disallowing it, the taxpayer could bring a refund suit in federal district court or the Court of Federal Claims. The IRS would not issue a notice of deficiency for employment tax that should have been treated as wages, so the taxpayer could not petition the Tax Court.

Ruling snapshot

  • Question: What procedure applied to employment tax assessed on amounts received by employees?
  • Outcome: Advice given, the taxpayer had to use the employment-tax refund claim process rather than petitioning the Tax Court.
  • Key authorities: IRC § 6211; Forms 941 and 941-X

Full text (IRS public release)

ID: CCA_2013011712065170 Number: 201312039
Release Date: 3/22/2013
Office: ------------------------------
UILC: 6211.00-00

From: ----------------------
Sent: Thursday, January 17, 2013 12:06:51 PM
To: ---------------------------
Cc:
Subject: Employment Tax

Regarding employment tax on amounts employees received, if taxpayer does not agree, the tax is
assessed. Taxpayer can pay the income tax withholding and FICA tax on Form 941 and file a claim for
refund on Form 941-X. If the IRS does not act on the claim within 6 months or if the IRS issues a notice of
claim disallowance, taxpayer can file a refund suit in a United States District Court or the Court of Federal
Claims. The IRS does not issue a notice of deficiency for employment tax on amounts employees
received that should have been characterized as wages; taxpayer cannot file a petition in Tax Court.

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