Ezel / IRS Rulings / 201645013
Chief Counsel Advice 201645013 Released November 4, 2016 Advice

Routine return surveys did not count as repetitive examinations

Apply this to your situation

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.

Currency note: this determination was released in 2016
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, 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

IRS Counsel considered whether the number of times certain taxpayers' returns had been reviewed over the years violated the law governing repetitive examinations. Counsel concluded that there was no violation. Under Rev. Proc. 2005-32, merely looking at or surveying a return is not an examination, so many of the returns that had been routinely reviewed were not actually audited. Counsel also noted that the Internal Revenue Manual's repetitive-audit procedures apply only to individual returns without a Schedule C or Schedule F.

Ruling snapshot

  • Question: Did repeated IRS reviews of the taxpayers' returns violate the restrictions on repetitive examinations?
  • Outcome: advice given, Counsel found no violation based on the stated facts
  • Key authorities: IRC § 7605(b); Rev. Proc. 2005-32; IRM 4.10.2.13

Full text (IRS public release)

ID:         CCA_2016090812034054
UILC:       7605.01-00

Number: 201645013
Release Date: 11/4/2016
From:
Sent: Thursday, September 08, 2016 12:03:40 PM
To:
Cc:
Bcc:
Subject: advice re: 7605(b) and repetitive audits for -------------


Thanks for your patience while I coordinated with the section 7605 experts in Counsel. It is
Counsel’s position that there has been no violation of law with respect to these taxpayers
regarding the number of times their returns have been looked at over the years. Below are the
facts upon which Counsel relied in reaching this conclusion:

      •   -------------------------------------
      •   --------------------------------------------------------------------------------------------------------------------------------
          ---------------------------------
      •   --------------------------------------------------------------------------------------------------------------------------------
          --------------------------------------------------------------------------------------------------------------------------------
          ---------------------------------------------------
      •   --------------------------------------------------------------------------------------------------------------------------------
          --------------------------------------------------------------------------------------------------------------------------------
          ---------------------------------------------------
      •   --------------------------------------------------------------------------------------------------------------------------------
          --------------------------------------------------------------------------------------------------------------------------------
          ---------------------------------------------------
      •   --------------------------------------------------------------------------------------------------------------------------------
          --------------------------------------------------------------------------------------------------------------------------------
          -------------------------------------------------
      •   ----------------------------
           -------



Based on Rev. Proc. 2005-32, “looking at a tax return” (i.e., surveying it) is not an
examination. Thus, while these taxpayers have had their returns routinely looked at,
many of the tax returns were not in fact audited. And the repetitive audit procedures in
IRM 4.10.2.13 only apply to individual returns without a Schedule C or Schedule F. -----
---------------------------------------------------------------------------------

                                                2

Again, I appreciate your patience while Counsel took a close look at the facts of this case.
Please let me know if you have any questions.

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

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2016, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.