Tax reported on amended returns and partner adjustments may be assessed

Plain-English summary

Chief Counsel advised that the IRS may assess tax shown on a return, including an amended individual return. Amounts paid before or after a notice of deficiency also may be assessed. For a partner-level administrative adjustment request, section 6227(d) permits assessment of additional tax resulting from the requested adjustments. A partner may also waive restrictions imposed by the TEFRA partnership procedures under section 6224(b).

Ruling snapshot

• Question: May the IRS assess tax reported through an amended return or a partner-level administrative adjustment request?
• Outcome: Advice given. The reported or resulting additional tax may be assessed.
• Key authorities: IRC §§ 6201, 6213, 6224, and 6227

Full text (IRS public release)

ID: CCA_2014082111422601 [Third Party Communication:

UILC: 6201.00-00
Date of Communication: Month DD, YYYY]

Number: 201438025
Release Date: 9/19/2014
From:
Sent: Thursday, August 21, 2014 11:42:26 AM To: Cc: Bcc: Subject: RE: Amended 1040X and partner AAR's

Section 6201(a)(1) and Treas. Reg. 301.6201-1(a)(1) allow assessment on any tax shown on a return. This includes any amount on an amended return. Treas. Reg. 301.6211(a)-1(last sentence) and section 6213(g)(1). Section 6213(b)(4) and Treas. Reg. 301.6213-1(b)(3) allow assessment of any amount paid before or after the issuance of a notice of deficiency.

For partner level AAR’s Section 6227(d) provides.

(d) Other requests
If any partner files a request for an administrative adjustment (other than a request described in subsection (c)), the Secretary may—
...
(2) assess any additional tax that would result from the requested adjustments,

Section 6224(b) allows a partner to waiver any restriction under the TEFRA procedures.