IRS may consider an informal abatement request after the assessment period expires

Plain-English summary

Chief Counsel advised that the IRS may consider new information submitted as an informal request to abate an income, estate, or gift tax assessment even though IRC § 6404(b) does not give taxpayers a right to file such a claim. There is no limitations period for abating an assessment, and IRC § 6404(a)(2) expressly permits abatement after the assessment statute expiration date. The IRS should use special care because it cannot reassess the tax after that date if the reduction later proves erroneous.

Ruling snapshot

• Question: May the IRS consider an informal request to abate an assessment after the assessment period has expired?
• Outcome: Advice given
• Key authorities: IRC § 6404; IRM 4.75.37.9; IRM 25.6.1.10.1

Full text (IRS public release)

ID: CCA_2015113012220210 [Third Party Communication:

UILC: 6404.00-00 Date of Communication: Month DD, YYYY]

Number: 201550042
Release Date: 12/11/2015
From:
Sent: Monday, November 30, 2015 12:22:02 PM
To:
Cc:
Bcc:
Subject: FW: TAS Example of audit

-------,

This email is in response to your question to --------------on November 9, 2015 about
whether the IRS can consider new information provided after the expiration of the
assessment period. As a policy, the Service will consider informal abatement claims
despite the I.R.C. § 6404(b) limitation that states no claim for abatement shall be filed
by a taxpayer for any income, estate, or gift tax assessment. See, e.g., IRM
25.6.1.10.1(2), Requests for Abatement (stating that even though section 6404(b)
provides that taxpayers have no right to file a claim for abatement in this case, the
Service will consider a taxpayer’s request for abatement when a taxpayer files an
amended return showing a decrease in the tax assessed); IRM 4.75.37.9, Informal
Requests for Abatement of Income Taxes. There is no period of limitations on an
abatement of an assessment (and section 6404(a)(2) explicitly authorizes abatements
to be made after the ASED expires); however, special care should be taken with claims
made after the ASED because the tax cannot be reassessed if it is determined that the
decrease in tax is erroneous. See IRM 25.6.1.10.1.2, Assessment after the Assessment
Statute Expiration Date (ASED).

Please let me know if you have any additional questions or concerns.

Best,

----------------------