Superseding returns and the SOL.

• Author: Keenan, John

In recent Chief Counsel Advice (CCA) 200645019, the IRS concluded that a taxpayer's superseding tax return filed on the extended due date is the return that starts the assessment SOL.

Facts: On March 15, 2003, the taxpayer timely mailed Form 7004, Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns, requesting an extension to Sept. 15, 2003 to file Form 1120, U.S. Corporation Income Tax Return. Before that date, the taxpayer filed Forms 1120 and 1139, Corporation Application for Tentative Refund. These forms reflected a tax overpayment and requested a refund. Form 1120 included only basic income tax information and schedules; the taxpayer did not include any of the required Forms 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations.

On Sept. 15, 2003, the taxpayer mailed a second Form 1120 for the 2002 tax year, which included different information from the original return and requested an additional refund on a second Form 1139. The taxpayer attached Forms 5471 to the second Form 1120.

Analysis: The Service first addressed whether the filing of Form 1120 before Sept. 15, 2003 revoked the remaining extension to file granted until that date. Based on Haggar, it concluded that the taxpayer's filing of a first return before Sept. 15, 2003 did not revoke the remaining extension.

Second, the...