1513-0099 Law and Reg.

1513-0099

26 U.S.C.

Sec. 7121. Closing agreements

(a) Authorization

The Secretary is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of the person or estate for whom he acts) in respect of any internal revenue tax for any taxable period.

(b) Finality

If such agreement is approved by the Secretary (within such time as may be stated in such agreement, or later agreed to) such agreement shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact--

(1) the case shall not be reopened as to the matters agreed upon or the agreement modified by any officer, employee, or agent of the United States, and

(2) in any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.

(Aug. 16, 1954, ch. 736, 68A Stat. 849; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

27 CFR

Sec. 70.485 Closing agreements.

(a) In general. The appropriate TTB officer may enter into a written agreement with any person relating to the liability of such person (or of the person or estate for whom the person acts) in respect of any tax imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau for any taxable period ending prior or subsequent to the date of such agreement. A closing agreement may be entered into in any case in which there appears to be an advantage in having the case permanently and conclusively closed, or if good and sufficient reasons are shown by the taxpayer for desiring a closing agreement and it is determined by the appropriate TTB officer that the United States will sustain no disadvantage through consummation of such an agreement.

(b) Scope of closing agreement--(1) In general. A closing agreement

may be executed even though under the agreement the taxpayer is not

liable for any tax for the period to which the agreement relates. There

may be a series of closing agreements relating to the tax liability for

a single period.

(2) Taxable periods ended prior to date of closing agreement.

Closing agreements with respect to taxable periods which ended prior to

the date of the agreement may relate to the total tax liability of the

taxpayer or to one or more separate items affecting the tax liability of the taxpayer.

(3) Taxable periods ending subsequent to date of closing agreement.

Closing agreements with respect to taxable periods ending subsequent to

the date of the agreement may relate to one or more separate items

affecting the tax liability of the taxpayer.

(c) Finality. A closing agreement which is approved within such time as may be stated in such agreement, or later agreed to, shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact:

(1) The case shall not be reopened as to the matters agreed upon or

the agreement modified by any officer, employee, or agent of the United

States, and

(2) In any suit, action, or proceeding, such agreement, or any

determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.

However, a closing agreement with respect to a taxable period ending

subsequent to the date of the agreement is subject to any change in, or

modification of, the law enacted subsequent to the date of the agreement and made applicable to such taxable period, and each closing agreement shall so recite.

(d) Procedure with respect to closing agreements--(1) Submission of

request. A request for a closing agreement which relates to a prior

taxable period may be submitted at any time before a case with respect

to the tax liability involved is filed with a court of the United

States. The procedure with respect to requests for closing agreements

shall be under such rules as may be prescribed from time to time by the

Administrator in accordance with the regulations under this section.

(2) Collection, credit, or refund. Any tax or deficiency in tax

determined pursuant to a closing agreement shall be assessed and

collected, and any overpayment determined pursuant thereto shall be

credited or refunded, in accordance with the applicable provisions of

law.

(26 U.S.C. 7121)

[T.D. ATF-301, 55 FR 47655, Nov. 14, 1990]