CCA 1312044: the IRS could refund a larger TETR overpayment than requested

Plain-English summary

Chief Counsel advised that, in a timely filed telephone excise tax refund, or TETR, request, the IRS could issue a refund larger than the amount the taxpayer requested if the IRS determined that the taxpayer's overpayment was larger. The advice treated the matter like a normal refund request and noted that the refund remained subject to IRC § 6402. It also explained that the timing issue under IRC § 6511 did not uniquely prevent the larger refund in a TETR matter. Notice 2006-50 provided authority for making refunds in the circumstances described.

Ruling snapshot

• Question: Could the IRS issue a TETR refund larger than the amount requested?
• Outcome: Advice given, the IRS could refund the larger determined overpayment, subject to IRC § 6402.
• Key authorities: IRC §§ 6402, 6511, and 4251; Notice 2006-50

Full text (IRS public release)

ID: CCA_2013021910204525 Number: 201312044
Release Date: 3/22/2013
Office: --------------
UILC: 6402.00-00, 4251.00-00

From: ----------------
Sent: Tuesday, February 19, 2013 10:20:51 AM
To: ------------------------
Cc: --------------------------------------------------------------------
Subject: RE: TETR claim

I confirmed what we discussed this morning. You asked whether the Service may issue a refund that is
larger than the amount requested in a TETR situation in which the request was timely filed and the
Service determines that the overpayment is larger than the amount in the request. As with a normal
refund request, if the Service determines that the taxpayer is entitled to an amount that is larger than the
request, it may go ahead and make the refund (for the larger amount). In a TETR matter, the analysis
would be the same. Although the Service typically needs to both allow and make a refund within the
section 6511(a) claim filing period (in any situation in which there is no timely filed claim), that problem is
not unique to this situation in which the Service determines that the taxpayer has a larger overpayment
than what it claimed. Indeed, in virtually all TETR situations in which a taxpayer timely filed a request by
the July 27, 2012 due date, the making of any refund would not fall within the flush section 6511 limitation
period, but this is allowed pursuant to Notice 2006-50. Accordingly, once a determination is made, the
Service may refund the amount (subject to section 6402).

Feel free to give me a call directly if you want to discuss further.

Regards,