Form 872 should name the successor taxpayer being assessed
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This page covers one taxpayer's ruling from 2016, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.
Plain-English summary
An examination team asked which entity should execute Form 872 to extend the assessment period after a tax liability passed through successor entities. Chief Counsel agreed that the form should be executed for the successor-in-interest taxpayer the IRS intended to assess. Another redacted entity did not need to be listed because the assessed taxpayer had its own employer identification number, although including that entity would cause no harm. The advice also cautioned the team to include every relevant employer identification number because some large companies use multiple numbers.
Ruling snapshot
- Question: Which taxpayer name and employer identification numbers should appear on Form 872 after a liability passes to a successor?
- Outcome: Advice given, use the successor taxpayer being assessed and include all relevant EINs
- Key authorities: IRC § 6501
Full text (IRS public release)
ID: CCA-02190159-16
UILC: 6501.08-00
Number: 201626023
Release Date: 6/24/2016
From: --------------------------------------------------------------------------------
Sent: Friday, February 19, 2016 1:59 PM
To:
Cc: -----------------------------------------------------------------------------
Bcc: --------------------------------------------------------------------------------
Subject: RE: Correct name on 872 to extend period of limitations
---------
we
agree with your suggestion that the form be executed for ---------------------------------),
successor in interest to -------------------------------------------------------------------------------------
-------------------------------------------------- -----------------is the taxpayer that you are
assessing and the tax liability originated with --------and passed to ---------------before
settling on ------------------We do not believe that there is a need to list ----------- because -
-----------------has its own EIN and is the taxpayer the Service will assess. That said, I do
not believe that there is harm in including it. We also caution that exam should ensure
that they include all the relevant EINs as some large companies have multiple EINs.
Please let me know if you have any further questions or concerns with this and I will be
happy to assist you.
Thank you,
----
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