Routine return surveys did not count as repetitive examinations

Number

201645013

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Restrictions on Examination of Taxpayer

Topics

Procedure, penalties, and administration

Code sections

§ 7605

Ruling dated

September 8, 2016

Publicly released

November 4, 2016

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 2016, 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

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:

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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. -----
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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.

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