Assessment period expired 64 days after the waiver

Plain-English summary

Chief Counsel concluded that the assessment limitations period expired 64 days after the taxpayer executed a valid Form 5564 waiver. Under sections 6213 and 6503, the waiver ended the 90-day suspension tied to the deficiency notice and began a 60-day suspension period. Four days had remained on the ordinary assessment period when the deficiency notice was issued. Following Revenue Ruling 66-17, those four days were added to the 60-day period.

Ruling snapshot

• Question: When did the assessment limitations period expire after the taxpayer executed a waiver during the deficiency-notice suspension period?
• Outcome: Advice given.
• Key authorities: IRC §§ 6213(a), 6213(d), and 6503(a)(1); Rev. Rul. 66-17.

Full text (IRS public release)

ID: CCA_2015020215431410 Third Party Communication: None

UILC: 6503.00-00 Date of Communication: Not Applicable

Number: 201518015
Release Date: 5/1/2015

From:
Sent: Monday, February 02, 2015 3:43:14 PM
To:
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Subject: Stat Notice Question

-------,

On the facts provided, the assessment statute expired 64 days after execution of the
waiver.

Rev. Rul. 66-17 is on point. The ruling addressed whether a Form 870 waiver of the
restrictions on assessment and collection of a deficiency pursuant to section 6213(d) of
the Internal Revenue Code of 1954 terminated the 90-day suspension of the period of
limitations on assessment and collection provided by section 6213(a) and 6503(a)(1) of
the Code and started the 60-day suspension period provided by section 6503(a)(1) of
the Code.

The ruling found that a valid waiver filed within the 90-day period of suspension
provided by sections 6213(a) and 6503(a)(1) has the effect of terminating the running of
such 90-day period and starting the running of the 60-day period provided by section
6503(a), on the date the waiver is filed. The ruling noted that on the facts before it, 2
weeks remained on the normal period of limitation at the time the statutory notice of
deficiency was mailed, and thus added this 2-week period to the 60-day period to
determine the expiration date for the assessment statute.

Here, the facts and Code are substantially the same as under Rev. Rul. 66-17. The
relevant provisions of current sections 6213 and 6503 are substantially the same as
their predecessor provisions. And the Form 5564 Notice of Deficiency – Waiver at issue
constitutes a valid waiver pursuant to section 6213(d) of the restrictions on assessment
and collection. The waiver terminated the running of the 90-day period of suspension
provided by sections 6213(a) and 6503(a)(1) and started the running of the 60-day
period provided by section 6503(a)(1). In this case 4 days remained on the assessment
statute on the date the statutory notice of deficiency was issued, and so this 4-day
period is added to the 60-day period provided by section 6503(a)(1). The assessment
statute expired 64 days after execution of the waiver.

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Best,