Rev. Proc. 72-38
Rev. Proc. 72-38; 1972-2 C.B. 813
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit
or abatement; determination of correct tax liability.
(Also Part I, Sections 6501, 6511; 301.6501(c)-1, 301.6511(c)-1.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Clarified by Rev. Proc. 82-6
Section 1. Purpose.
Revenue Procedure 69-8, C.B. 1969-1, 399, states the conditions under which the Internal Revenue Service will accept one properly executed Form 872, Consent Fixing Period of Limitations Upon Assessment of Income Tax, covering a parent corporation and any or all of its subsidiary corporations. The purpose of this Revenue Procedure is to supersede Revenue Procedure 69-8 and to incorporate therein the same conditions with respect to the execution of consents on Form 872-B, Consent Fixing Period of Limitation Upon Assessment of Miscellaneous Excise Taxes, and Form SS-10, Consent to Fix Period of Limitation on Assessment of Employment Taxes.
Sec. 2. Background.
It is often necessary to examine the separately filed income, excise, and employment tax returns of a number of subsidiary corporations in connection with the examination of the income, excise, and employment tax returns of the parent corporation. In order to protect the interest of the Government against the expiration of the period of limitation on assessment in such cases, it is sometimes necessary to secure consents from the subsidiaries, as well as from the parent. See section 6501(c)(4) of the Internal Revenue Code of 1954. A consent extending the period of limitation on assessment is also advantageous to the taxpayer in that it extends the period within which a claim for credit or refund may be filed. See section 6511(c) of the Code.
Sec. 3. Procedure.
.01 In order to eliminate unnecessary paperwork, District Directors of Internal Revenue or, in cases under the jurisdiction of the Appellate Division, the Assistant Regional Commissioners--Appellate will accept a single consent provided certain conditions are met, as follows:
1 The name of the parent corporation and the number of subsidiary corporations named on an attached rider shall be inserted in the space provided for the name of the taxpayer on the Form 872, 872-B, or SS-10. The rider attached to the form will contain a supplemental agreement and will clearly identify the parent and the specific subsidiaries by showing the name, address, identification number, and the particular taxable year or periods, and in case of the rider attached to the Form 872-B or SS-10, the applicable excise or employment tax, of each subsidiary with respect to which the form is applicable. See Exhibits A, B, and C for the format of the riders.
2 Both the consent and the rider shall be executed on behalf of the parent corporation and all the subsidiaries named on the rider by a duly authorized officer of the parent corporation who (1) is also a duly authorized officer of each of the subsidiaries, or (2) has been specifically authorized to execute a consent by powers of attorney executed by each of the subsidiaries. The consent must specifically show that the person signing for the parent and subsidiaries is signing in the capacity of an authorized officer of the parent corporation and as an authorized officer or attorney-in-fact for each and all of the listed subsidiaries.
3 In the event two or more officers of the parent corporation are authorized to sign for the various subsidiaries, in accordance with 2 above, the rider attached to the consent should be arranged to show the names of the subsidiaries for which each officer or attorney-in-fact is signing.
.02 The District Director will attach a statement to the income, excise, or employment tax return of each of the subsidiary corporations indicating that a consent executed on behalf of the subsidiary has been secured and associated with the return of the parent. The statement will also show the name, address, and identification number of the parent corporation, the office in which the applicable tax return of the parent corporation was filed and the period of the extension agreed to in the consent.
Sec. 4. Effect on Other Documents.
Revenue Procedure 69-8 is superseded by this Revenue Procedure.
Exhibit A
Rider for Form 872
_____________________________________________________________________
(Name of parent corporation)
_____________________________________________________________________
(Address)
____________________________________________ __________________
Employer's Identification Number Taxable Year
The subsidiary corporations named below, and the District Director of
Internal Revenue (or Assistant Regional Commissioner--Appellate)
hereby consent and agree as follows:
That the amount(s) of any Federal income tax due under any
return(s) made by or on behalf of any of the subsidiaries for the
taxable year(s) indicated, under existing or prior revenue acts, may
be assessed at any time on or before _________________________,
except that if a notice of deficiency in tax for any such year(s) is
sent to the subsidiary on or before that date, then the time for
making any assessment therefor shall be further extended for the
period in which the making of an assessment is prohibited and for 60
days thereafter.
Employer's
Identification Taxable
Name of Subsidiary Address Number Year
-------------------- ----------------- ---------------- ---------
It is further agreed that this consent will have the same force
and effect as if separate consents were executed by each subsidiary
named herein and the District Director of Internal Revenue (or
Assistant Regional Commissioner--Appellate).
By ____________________________________________ ______________
(Signature) (Title) (Date)
_______________________________________________
District Director of Internal Revenue
(or Assistant Regional Commissioner--Appellate)
By ____________________________________________ ______________
(Signature) (Title) (Date)
Exhibit B
Rider for Form 872-B
_____________________________________________________________________
(Name of parent corporation)
_____________________________________________________________________
(Address)
______________________________________________ _____________________
Employer's Identification Number Taxable Period
The subsidiary corporations named below, and the District Director of
Internal Revenue (or Assistant Regional Commissioner--Appellate)
hereby consent and agree as follows:
That the amount of liability for __________________tax imposed
by section _________ of the ____________________ due by or on behalf
of any of the subsidiaries for the period(s) indicated below may be
assessed at any time on or before _________________________. It is
further consented that any assessment made within the extended period
indicated above may be collected in the same manner and subject to
the same provisions and limitations as an assessments made on any of
the above-mentioned taxes within the applicable statutory period of
limitations.
Employer's
Identification Taxable
Name of Subsidiary Address Number Period
-------------------- ----------------- ---------------- ---------
It is further agreed that this consent will have the same force
and effect as if separate consents were executed by each subsidiary
named herein and the District Director of Internal Revenue (or
Assistant Regional Commissioner--Appellate).
By ____________________________________________ ______________
(Signature) (Title) (Date)
_______________________________________________
District Director of Internal Revenue
(or Assistant Regional Commissioner--Appellate)
By ____________________________________________ ______________
(Signature) (Title) (Date)
Exhibit C
Rider for Form SS-10
_____________________________________________________________________
(Name of parent corporation)
_____________________________________________________________________
(Address)
______________________________________________ _____________________
Employer's Identification Number Taxable Period
The subsidiary corporations named below, and the District Director of
Internal Revenue (or Assistant Regional Commissioner--Appellate)
hereby consent and agree as follows:
That the amount of any ______________________________ tax due
under any return(s) made by or on behalf of any of the subsidiaries
for the taxable year(s) or period(s) indicated may be assessed at any
time on or before _________________________. It is further consented
and agreed that any assessment made within the extended period
indicated above may be collected in the same manner and subject to
the same provisions and limitations as an assessment made on any of
the above-mentioned taxes within the applicable statutory period of
limitations.
Employer's Taxable
Identification Period
Name of Subsidiary Address Number (Years)
-------------------- ----------------- ---------------- ---------
It is further agreed that this consent will have the same force
and effect as if separate consents were executed by each subsidiary
named herein and the District Director of Internal Revenue (or
Assistant Regional Commissioner--Appellate).
By ____________________________________________ ______________
(Signature) (Title) (Date)
_______________________________________________
District Director of Internal Revenue
(or Assistant Regional Commissioner--Appellate)
By ____________________________________________ ______________
(Signature) (Title) (Date)
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit
or abatement; determination of correct tax liability.
(Also Part I, Sections 6501, 6511; 301.6501(c)-1, 301.6511(c)-1.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
