[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 623-624]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.9002-7  Statute of limitations.

    (a) Extension of period for assessment and refund or credit. Under 
section 5(e) of the Act, if an election is made to have the Act apply, 
and if the assessment of any deficiency, or the refund or credit of any 
overpayment attributable to the election, for any taxable year to which 
the Act applies was not prevented on June 21, 1959, by the operation of 
any law or rule of law (except as provided in paragraph (b) of this 
section, relating to closing agreements and compromises), but would be 
so prevented prior to September 1, 1961, the period within which such 
assessment, or such refund or credit, may be made with respect to such 
taxable year shall not expire prior to September 1, 1961. An election 
under either section 3 or 4 of the Act will be considered to be a 
consent to the extension of the period of limitation for purposes of 
assessment for any year to which the Act applies. Thus, for example, if, 
as the result of an election under section 4(a) of the Act, assessment 
of a deficiency for the taxable year 1955 was not prevented by the 
statute of limitations, a judicial decision that had become final, or 
otherwise, on June 21, 1959, but would (except for section 5(e) of the 
Act) be prevented on a later date, as for instance September 1, 1959, 
then for purposes of

[[Page 624]]

applying section 4 of the Act, assessment may be made at any time prior 
to September 1, 1961, with respect to such year if the taxpayer made an 
election under the Act prior to September 1, 1960. Section 5(e) of the 
Act will, in no event, operate to shorten the period of limitation 
otherwise applicable with respect to any taxable year.
    (b) Years closed by closing agreement or compromise. For purposes of 
the Act, if the assessment of any deficiency or a refund or credit of 
any overpayment for any taxable year was not prevented on June 21, 1959, 
but is prevented on the date of an election under section 3 or 4 of the 
Act by the operation of the provisions of chapter 74 of the Code 
(relating to closing agreements and compromises), assessment, refund, or 
credit will, nevertheless, be considered as being prevented on June 21, 
1959.

[T.D. 6490, 25 FR 8373, Sept. 1, 1960]