IRS may process late telephone-excise claim despite EIN error

Plain-English summary

Chief Counsel advised that a telephone excise tax request and an amended request could be processed as timely under the IRS's administrative practice through July 27, 2012. The advice assumed that the claim would otherwise be allowable on its merits. Although the original request was legally late and therefore could not technically be supplemented, the IRS could process it as an administrative matter. Counsel also advised treating an incorrect employer identification number as harmless given the explanation for the error.

Ruling snapshot

• Question: Could the IRS process a late telephone excise tax claim and amended request despite an incorrect EIN?
• Outcome: Advice given to process both as timely if the claim was otherwise allowable
• Key authorities: IRC §§ 6402 and 6511

Full text (IRS public release)

ID: CCA_2014122208220557 [Third Party Communication:

UILC: 6402.00-00, 6511.09-00 Date of Communication: Month DD, YYYY]

Number: 201502014
Release Date: 1/9/2015
From:
Sent: Monday, December 22, 2014 8:22:05 AM
To:
Cc:
Bcc:
Subject: RE: Telephone Excise Tax Procedure Issue

,

I agree. However, a critical step in my analysis is that the claim otherwise would be allowed. If this is the case, then I would not make an issue of the incorrect EIN, especially given the explanation for the error. Consistent with the Service’s practice of administering the program through July 27, 2012, I would advise that the below-referenced request and amended request be worked as if both were timely. The reason that I care about the merits of the claim, which normally is irrelevant to the timeliness question, is that, as you know, even the first request was by definition late (as a matter of law) and a claim denial could be defended on timeliness grounds. Because the original request is not (at least technically) a “timely” claim in fact, there is nothing that may be “supplemented.” But again, the Service is free as an administrative matter to process the claim and to hold the EIN matter harmless.

Feel free to give me a call if you have any questions or want to discuss further.

Regards,

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