SECTION 5. PROCEDURE

.01 Taxpayers that wish to have a notice of deficiency rescinded should contact the person/office listed on the notice and request Form 8626. Taxpayers that wish an Appeals conference (see section 4.04(3) of this revenue procedure) should contact the person/office listed on the notice to find out how to contact the appropriate Appeals Office.

.02 A request to rescind a notice of deficiency should be made by the taxpayer as soon as possible after receipt of the notice because a notice will not be rescinded after the 90-day or 150-day restriction period under § 6213(a) has expired.

.03 If the Service determines that a notice of deficiency should be rescinded, the Service will send Form 8626 to the taxpayer requesting the taxpayer’s written consent to rescind. If appropriate, Form 872 or Form 872–A will also be sent for the taxpayer’s signature. If the taxpayer agrees to the rescission of the notice of deficiency, the signed Form 8626 (and Form 872 or Form 872–A if appropriate) must be returned to the office that sent the Form 8626 as soon as possible, prior to the expiration of the applicable 90-day or 150-day restriction period. After the Form 8626 is returned by the taxpayer and signed on behalf of the Commissioner, a copy will be sent to the taxpayer (and/or the taxpayer’s authorized representative(s)). The effective date of the rescission agreement is the date on which the Commissioner’s delegate signs Form 8626.

.06 Although use of Form 8626 is preferred, a document that reflects agreement by the taxpayer and the Service to rescind the notice of deficiency, pursuant to § 6212(d), may be used in lieu of Form 8626. Such a document will not be effective unless it contains the following:

(1) a statement that the taxpayer and the Commissioner’s delegate agree to rescind the notice of deficiency;

(2) identification of the notice of deficiency, including the date it was issued, the type of tax, the tax period(s), and the amount(s) of the deficiency or deficiencies and any penalties;

(3) representations that the period of limitations on assessment has not expired and that the taxpayers have not petitioned the Tax Court;

(4) an agreement that the effect of the rescission is to return the parties to the rights and obligations existing immediately prior to the issuance of the rescinded notice of deficiency, including the right of the Service to issue a later notice of deficiency, for any amount, and the right of the taxpayer then to appeal to the Tax Court; and

(5) the signatures (on the same document) of both the Commissioner’s delegate and the taxpayer (or the taxpayer’s representative). If the document is signed by the taxpayer’s representative, and a power of attorney has not previously been filed, the power of attorney must be included with the document.

.07 A properly executed Form 8626 (or a document as provided in section 5.06 of this revenue procedure) is the only way that a notice of deficiency may be rescinded.

October 26, 1998 8 1998–43 I.R.B.

.08 If the Service does not agree that the notice of deficiency should be rescinded, the taxpayer will be so notified in writing, and the notice of deficiency will remain in effect. If the taxpayer wishes to file a petition with the Tax Court, the taxpayer must file the petition within the applicable 90-day or 150-day restriction period, which may not be extended.