Ezel / IRS Rulings / 1312047
Chief Counsel Advice 1312047 Released March 22, 2013 Advice

CCA 1312047: Form 870-AD agreement did not bar assessment of a carryback adjustment

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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 that a Form 870-AD agreement signed by taxpayers and the IRS was not a binding agreement that conclusively settled the taxpayers' liability. The advice concerned a proposed assessment of a carryback adjustment. It relied on the Eighth Circuit's decision in Ihnen v. United States, which held that Form 870-AD agreements are not binding in that way. The advice therefore concluded that the agreement would not prevent the IRS from making the assessment.

Ruling snapshot

  • Question: Would a Form 870-AD agreement prevent assessment of a carryback adjustment under IRC § 6213(d)?
  • Outcome: Advice given, the agreement would not preclude assessment.
  • Key authorities: IRC § 6213(d); Ihnen v. United States, 272 F.3d 577 (8th Cir. 2001)

Full text (IRS public release)

ID: CCA_2013022816161503 Number: 201312047
Release Date: 3/22/2013
Office: -----------------------------
UILC: 6213.08-00

From: --------------------
Sent: Thursday, February 28, 2013 4:16:18 PM
To: ----------------
Cc: ----------------------
Subject: RE: IRC 6213(d) Issue

The Eighth Circuit has held that Form 870-AD agreements are not binding agreements
and do not conclusively settle a tax liability. See Ihnen v. United States, 272 F.3d 577,
579 (8th Cir. 2001). Accordingly, the Form 870-AD executed by the taxpayers and the
Service would not preclude assessment of the carryback adjustment here. I hope this is
helpful.

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