Later combat-zone status does not undo deficiency notice

Number

201535017

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Time for Performing Certain Acts Postponed by Reason of Service in a Combat Zone

Topics

Procedure, penalties, and administration

Code sections

§ 7508

Ruling dated

July 27, 2015

Publicly released

August 28, 2015

Source

View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2015, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, 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

The IRS issued a notice of deficiency before learning that the taxpayer qualified for combat-zone relief under section 7508(a). Chief Counsel advised that the notice should not be withdrawn and the examination should not be undone. Section 7508(e)(2) permits the government to proceed until it ascertains that the person is entitled to the statutory benefits. The taxpayer should receive section 7508 relief going forward from the date the IRS learned of the eligibility.

Ruling snapshot

Question: Must the IRS withdraw a notice of deficiency issued before it learned that the taxpayer qualified for combat-zone relief?
Outcome: Advice given, the notice remains in place and relief applies going forward
Key authorities: IRC §§ 7508(a), 7508(e)(2)

Full text (IRS public release)

ID: CCA_2015072714492917
UILC: 7508.00-00

Number: 201535017
Release Date: 8/28/2015
From: ----------------
Sent: Monday, July 27, 2015 2:49:29 PM
To: --------------------------------------------
Cc: ----------------------------------------------- Bcc: Subject: FW: Combat Zone Question - High Priority

Hello -----------
We should not withdraw the Notice of Deficiency or in any way undo the exam. IRC 7508(e)(2) provides:

The assessment or collection of any internal revenue tax or of any liability to the United States in respect of any internal revenue tax, or any action or proceeding by or on behalf of the United States in connection therewith, may be made, taken, begun, or prosecuted in accordance with law, without regard to the provisions of subsection (a), unless prior to such assessment, collection, action, or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (a).

Here, the Notice of Deficiency was issued before the IRS ascertained that TP was entitled to 7508(a) benefits. IRC 7508 benefits should be provided to TP going forward from the date IRS ascertained that TP was entitled to those benefits. Hope that helps. Let me know if you have further questions.

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