[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6223(a)-2]

[Page 166-167]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Assessment
 
Sec. 301.6223(a)-2  Withdrawal of notice of the beginning of an 
administrative proceeding.

    (a) In general. If the Internal Revenue Service, within 45 days 
after the day on which the notice specified in section 6223(a)(1) is 
mailed to the tax matters partner, decides not to propose any 
adjustments to the partnership return as filed, the Internal Revenue 
Service may withdraw the notice specified in section 6223(a)(1) by 
mailing a letter to that effect to the tax matters partner within that 
45-day period. Even if the Internal Revenue Service does not withdraw 
the notice specified in section 6223(a)(1), the Internal Revenue Service 
is not required to issue a notice of final partnership administrative 
adjustment. If the Internal Revenue Service withdraws the notice 
specified in section 6223(a)(1), neither the Internal Revenue Service 
nor the tax matters partner is required to furnish any notice with 
respect to that proceeding to any other partner. Except as provided in 
paragraph (b) of this section, a notice specified in section 6223(a)(1) 
which has been withdrawn shall be treated for purposes of subchapter C 
of chapter 63 of the Internal Revenue Code as if that notice had never 
been mailed to the tax matters partner.
    (b) Internal Revenue Service may not reissue notice except under 
certain circumstances. If the notice specified in section 6223(a)(1) was 
mailed to the tax

[[Page 167]]

matters partner with respect to a partnership taxable year and that 
notice was later withdrawn as provided in paragraph (a) of this section, 
the Internal Revenue Service shall not mail a second notice specified in 
section 6223(a)(1) with respect to that taxable year unless--
    (1) There is evidence of fraud, malfeasance, collusion, concealment, 
or misrepresentation of a material fact;
    (2) The prior proceeding involved the misapplication or erroneous 
interpretation of an established Internal Revenue Service position 
existing at the time of the previous examination, or the failure to make 
an adjustment based on such a position; or
    (3) Other circumstances exist which indicate that failure to reissue 
the notice would be a serious administrative omission.
    (c) Effective date. This section is applicable to partnership 
taxable years beginning on or after October 4, 2001. For years beginning 
prior to October 4, 2001, see Sec. 301.6223(a)-2T contained in 26 CFR 
part 1, revised April 1, 2001.

[T.D. 8965, 66 FR 50547, Oct. 4, 2001]