CCA 1350038: closing-agreement request for closed tax years is not appropriate under the revenue procedure

Plain-English summary

Chief Counsel Advice addresses a taxpayer's request for a closing agreement under Rev. Proc. 2012-1. The advice concludes that the request is not appropriate because it concerns tax years that were already closed and returns that had been filed, or were required to be filed, before the request was submitted. The Associate Chief Counsel therefore lacks jurisdiction to issue a letter ruling in the matter, and the taxpayer cannot receive a closing agreement under that revenue procedure. An appropriate IRS official could still consider a closing agreement under examination procedures or an applicable voluntary program.

Ruling snapshot

• Question: May a taxpayer obtain a closing agreement under Rev. Proc. 2012-1 for closed tax years?
• Outcome: Advice given
• Key authorities: IRC § 7121; Rev. Proc. 2012-1, § 2.02

Full text (IRS public release)

ID: CCA_2013103008281154
Office: ----------
UILC: 7121.00-00
Number: 201350038
Release Date: 12/13/2013
From: -------------------------
Sent: Wednesday, October 30, 2013 8:28:37 AM
To: -------------------------
Cc: ------------------------------------------------------------------------------------------------------------------------
Subject: RE: Scans

The taxpayer's request is not an appropriate request under Rev. Proc. 2012-1. As I
previously noted, the provision on closing agreements in the annual revenue procedure
explaining how the Service provides advice to taxpayers on issues under the jurisdiction
of the Associate Chief Counsel unambiguously provides that "a taxpayer may request a
closing agreement with a letter ruling or in lieu of a letter ruling with a transaction that
would be eligible for a letter ruling." Rev. Proc. 2012-1, sec. 2.02. The taxpayer in this
case is requesting a closing agreement for years that have been closed and for which
the returns were filed (or were required to be filed) well before the request for a closing
agreement under Rev. Proc. 2012-1 was submitted. The Associate Chief Counsel does
not have jurisdiction to issue a letter ruling in such cases. Accordingly, the taxpayer
cannot receive a closing agreement under the revenue procedure. Of course, if the
issue is under examination or the IRS chooses to open an examination, the appropriate
IRS official may, if appropriate, agree to execute a closing agreement under the
procedures governing the execution of closing agreements generally. Note: We have
no information suggesting that the taxpayer's request for a closing agreement falls
within one of the voluntary programs that the IRS has announced that allow for the
appropriate IRS official and the taxpayer to otherwise agree on a closing agreement. If
the taxpayer's request does fall within one of those programs, the procedures for
executing a closing agreement under that program should be followed.