SECTION 4. DEFINITIONS

.01 Closed case . (1) For purposes of this revenue procedure, an agreed case is closed after examination when the Service notifies the taxpayer in writing after a conference, if any, of adjustments to the taxpayer’s liability or acceptance of the taxpayer’s tax return or exempt status without change. A case involving a refund or credit in excess of the statutory sum that is subject to review by the Joint Committee on Taxation, pursuant to section 6405, is not a closed case until Joint Committee review procedures and any necessary follow-up are complete. Also, in a fully agreed case in which the taxpayer and the Service have entered into a closing agreement, as described in section 7121, following examination, the case is not a closed case until the closing agreement is signed by an appropriate Service official.

(2) An unagreed income, estate, gift, or chapters 41 through 44 excise tax case, or a worker classification or plan qualification case subject to section 7436 or section 7476, is closed after examination when the period for filing a petition with the United States Tax Court, as specified in the statutory notice of deficiency or notice of determination issued to the taxpayer, expires with no petition filed.

(3) An unagreed excise tax case not subject to the deficiency procedures of sections 6211 through 6215 or an employment tax case not subject to the determination of employment status procedures of section 7436 is closed after examination when the period specified in the preliminary letter for requesting a hearing with Appeals expires and no request has been made.

(4) An unagreed classification or qualification case subject to section 7428 is closed after examination when the period expires for bringing an action in the United States Tax Court, the United States Court of Federal Claims, or the United States District Court for the District of Columbia, and no action has been filed.

(5) An unagreed TEFRA partnership case is closed when the period for bringing an action in the United States Tax Court, a

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, Section 7605; 301.7605–1.)

Rev. Proc. 2005–32