[Federal Register Volume 64, Number 224 (Monday, November 22, 1999)]
[Proposed Rules]
[Pages 63768-63773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30178]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-104939-99]
RIN 1545-AX13
Definition of Last Known Address
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document contains proposed regulations defining ``last
known address'' in relation to the mailing of notices of deficiency and
other notices, statements, and documents sent to a taxpayer's last
known address. The proposed regulations affect taxpayers who receive
notices of deficiency and other notices, statements, and documents sent
to taxpayers' last known addresses.
DATES: Written or electronic comments and requests for a public hearing
must be received by February 22, 2000.
ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-104939-99), room
5226, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand delivered Monday through
Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-
104939-99), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC. Alternatively, taxpayers may submit
comments electronically via the Internet by selecting the ``Tax Regs''
option on the IRS Home Page, or by submitting comments directly to
http://www.irs.gov/tax__regs/regslist.html (the IRS Internet site).
FOR FURTHER INFORMATION CONTACT: Concerning submissions, Michael
Slaughter, (202) 622-7180; concerning the regulations, Charles A. Hall,
(202) 622-4940 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
In General
This document contains proposed amendments to the Regulations on
Procedure and Administration (26 CFR part 301) under section 6212(b)
relating to the sufficiency of a notice of deficiency if it is mailed
to the last known address of a taxpayer. This document also contains
proposed amendments to the Income Tax Regulations (26 CFR part 1) and
the Regulations on Procedure and Administration (26 CFR part 301) to
provide cross-references to the proposed last known address rules under
section 6212(b) in order to apply those rules to other notices,
statements, and documents required to be sent to the last known address
of a taxpayer.
Last Known Address
Many statutory and regulatory provisions refer to the last known
address of a taxpayer. However, current law with respect to the last
known address of a taxpayer has developed under section 6212(b),
relating to the address for mailing a notice of deficiency. Generally,
under section 6501, the IRS has three years from the date a Federal tax
return is filed, or the due date for the return if the return is filed
early, to assess a deficiency. Under section 6213, the IRS may not
assess or collect a deficiency until after the notice of deficiency has
been mailed to the taxpayer giving the taxpayer an opportunity to
petition the United States Tax Court. Under section 6212(b), an
otherwise valid notice of deficiency is sufficient if it is mailed to
the taxpayer's last known address, even if it is not received by the
taxpayer.
The term last known address is not defined by statute or current
regulations. However, case law defines last known address as the
``address which appears on the taxpayer's most recently filed return,
unless [the IRS] has been given clear and concise notification of a
different address.'' Abeles v. Commissioner, 91 T.C. 1019, 1035 (1988),
acq. 1989-2 C.B. 1. The taxpayer's most recently filed return for this
purpose is the last return filed by the taxpayer from which, if the
return was properly processed, the address on the return was available
to the IRS agent mailing a notice of deficiency. Id. at 1035.
The taxpayer provides the IRS with clear and concise notification
of a change of address by affirmatively informing the IRS that the
former address is not to be used. See King v. Commissioner, 857 F.2d
676, 681 (9th Cir. 1988); Monge v. Commissioner, 93 T.C. 22, 32 (1989).
Although the IRS must exercise due diligence in ascertaining the last
known address and in mailing the notice of deficiency to the correct
address after having become aware of a taxpayer's change of address,
that duty does not require the IRS to change the taxpayer's last known
address based on information from third party sources. See Grencewicz
v. Commissioner, 60 T.C.M. (CCH) 1300, 1302 (1990). Accordingly, under
current law, clear and concise notification does not include taxpayer
notification to third parties, such as payors or the United States
Postal Service (USPS). See Adams v. Commissioner, 68 T.C.M. (CCH) 291,
294 (1994), aff'd sub nom., Miller v. Commissioner, 76 A.F.T.R.2d (RIA)
95-5903 (10th Cir. 1995) (forwarding order filed with USPS not clear
and concise notice to IRS); Selman v. Commissioner, 61 T.C.M. (CCH)
2184, 2186 (1991) (USPS change of address form not notice to IRS
because no evidence IRS received form); Martin v. Commissioner, 64
T.C.M. (CCH) 1529, 1531 (1992) (citing Selman); Grencewicz v.
Commissioner, 60 T.C.M. (CCH) 1300, 1302 (1990) (IRS not required to
review Forms 1099 and Schedule K-1); Greenstein v. Commissioner, 60
T.C.M. (CCH) 379, 382 (1990) (Forms W-2G and Form 1099-DIV not
sufficient notice).
Current IRS Procedures for Changing Last Known Address
The IRS has prescribed rules for providing clear and concise
notification of a different address in Rev. Proc. 90-18 (1990-1 C.B.
491). Under Rev. Proc. 90-18, a taxpayer must give clear and concise
written notification of a change of address to the Internal Revenue
Service Center that serves the taxpayer's old address or to the Chief,
Taxpayer Service Division, in the local district office. The revenue
procedure applies to notices required to be sent to a taxpayer's last
known address under sections 982(c)(1), 6110(f)(3)(B), 6212(b),
6303(a), 6325(f)(2)(A), 6331(d)(2)(C), 6332(b)(1), 6335(a) and (b),
6901(g), and 7609(a)(2). Rev. Proc. 90-18, section 2.01. Although not
included in Rev. Proc. 90-18, section 6110(f)(4)(B) also requires a
notice to be sent to a taxpayer's last known address. Since publication
of Rev. Proc. 90-18, four new sections have been added to the Code that
reference last known address. See sections 6245(b)(1), 6320(a)(2)(C),
6330(a)(2)(C), and 7603(b)(1). Future updates of Rev. Proc. 90-18 will
incorporate these new sections, as well as section 6110(f)(4)(B).
Under section 5.04 of Rev. Proc. 90-18, taxpayers may provide the
IRS with clear and concise notification of a different address in one
of three ways. First, a taxpayer may send the IRS a signed statement
informing the IRS that the taxpayer wants the address of record
[[Page 63769]]
changed to a new address. In addition to the new address, this
notification must contain the taxpayer's full name, signature, old
address, and social security number and/or employer identification
number. Filers of a joint return should provide both names, social
security numbers, and signatures. Individuals who have changed last
names, for instance, due to marriage, should provide the last name
shown on the most recently filed return and the new last name. In all
cases, clear and concise written notification must be specific as to a
change of address. Thus, a new address reflected in the letterhead of
taxpayer correspondence will not by itself change a taxpayer's address
of record.
Second, if the IRS sends correspondence to the taxpayer that
solicits or requires a response by the taxpayer and the taxpayer
returns the correspondence to the IRS with corrections marked on the
taxpayer's address information, the return of the correspondence will
constitute clear and concise written notification of a change of
address. The taxpayer's signature on the correspondence is not
required.
Third, the taxpayer may file a Form 8822, ``Change of Address,''
with the IRS.
In addition to the rules prescribed in Rev. Proc. 90-18, the IRS
currently accepts oral notification of a different address, provided
the request is made in the context of an inquiry about the taxpayer's
account. Courts have acknowledged the validity of oral notification of
a change of address for purposes of last known address under section
6212(b), provided the notification is sufficiently clear, is given to a
proper representative of the IRS, and is established by competent
proof. See Mollet v. Commissioner, 82 T.C. 618, 625-26 (1984). Future
updates of Rev. Proc. 90-18 will permit the oral notification of a
change of address.
Explanation of Provisions
The proposed regulations define last known address consistent with
the definition set forth in Abeles. Accordingly, the proposed
regulations provide that the taxpayer's last known address is the
address that appears on the taxpayer's most recently filed and properly
processed Federal tax return, unless the IRS is given clear and concise
notification of a different address.
The proposed regulations also provide that the IRS will use an
address obtained from the United States Postal Service (USPS) as a
taxpayer's last known address in the absence of a more recent address.
Although current law does not require the IRS to treat a taxpayer's
notification to a third party, such as a payor or the USPS, as clear
and concise notification of a different address for purposes of
determining a last known address, the IRS and the Treasury Department
are not prohibited from prescribing a rule that would allow the IRS to
consult a third party source for the taxpayer's most current address.
Thus, the proposed regulations provide that beginning in May 2000,
the IRS will refer to the USPS's National Change of Address (NCOA)
database to obtain a taxpayer's address for purposes of determining the
taxpayer's last known address. The proposed regulations also provide
that the rules for last known address under Sec. 301.6212-2 apply for
purposes of other notices, statements, and documents mailed by the IRS
to a taxpayer's last known address pursuant to the Internal Revenue
Code or regulations. In addition, the regulations propose to amend
existing regulations that use the term ``last known address'' to cross
reference the regulations to Sec. 301.6212-2.
NCOA Database
The NCOA database is a computerized record of changes of address
maintained by the USPS. This database retains address changes for a
thirty-six month period. USPS obtains the change of address information
from a properly submitted USPS Form 3575, ``Official Mail Forwarding
Change of Address Form.'' Both businesses and individuals use the Form
3575. Individuals may indicate whether the change of address applies to
the individual or, if applicable, the individual's entire family.
Updating Master File
In May 2000, and again in November 2000, and annually thereafter in
each November, the Martinsburg Computing Center (MCC) in Martinsburg,
West Virginia, will access the NCOA database to update all taxpayer
address records maintained in the IRS's automated master file for
purposes of updating the IRS's mailing list. Generally, if the
taxpayer's name and the last known address maintained in the automated
master file match the taxpayer's name and old mailing address contained
in the NCOA database, within certain tolerances, the IRS will use the
new address obtained from the NCOA database to update the automated
master file. The updated address will be the taxpayer's last known
address, unless the IRS is given clear and concise notification of a
different address. However, due to IRS system limitations, if taxpayers
file jointly, but the NCOA database contains change of address
information for only one spouse, the earliest this rule will apply is
January 2001. The IRS will publish further guidance as to when this
rule will apply to these joint filers.
In addition, beginning in May 2000, prior to mailing correspondence
to any particular taxpayer from an IRS Service Center, the IRS will
access the NCOA database to determine if the taxpayer submitted a Form
3575 to the USPS with a more recent address. If so, the following will
occur: (1) The correspondence will be mailed to the address obtained
from the NCOA database, and (2) the IRS will use the new address from
the NCOA database to update the automated master file. This updated
address will be the taxpayer's last known address. Similar to the
exception relating to the annual update, however, this rule will not be
effective any earlier than January 2001 if taxpayers file jointly, but
the NCOA database contains change of address information for only one
spouse.
If the taxpayer subsequently files a return with an address other
than the address on the Form 3575, the taxpayer's last known address
will be the address on the subsequently filed and properly processed
return. Similarly, if the taxpayer submits a Form 8822, ``Change of
Address,'' (or other clear and concise notification of a change of
address) to the IRS after the taxpayer submits a Form 3575 to the USPS,
the taxpayer's last known address will be the address on the Form 8822
(or on the clear and concise notification). In each instance, the IRS's
master file will be updated to reflect the taxpayer's new last known
address.
The IRS will not access the NCOA database prior to mailing
correspondence from district offices and posts of duty. Unlike Service
Centers, these locations do not have the systems capability to check
the NCOA database for individual mailings at this time. Instead, the
IRS will use the address stored in the automated master file. For
purposes of correspondence mailed from district offices and posts of
duty, the address on the IRS automated master file, as updated through
the use of the NCOA database, will be the taxpayer's last known
address.
Using the NCOA database will increase customer service by allowing
faster delivery of IRS correspondence to a taxpayer. Rather than
mailing correspondence to an address which is no longer a taxpayer's
address and relying on the USPS to forward mail to the taxpayer's most
recent address, the IRS will mail the correspondence
[[Page 63770]]
directly to the taxpayer's most recent address. In addition, by
updating the automated master file with the most recent address, future
IRS correspondence will be mailed to the taxpayer's most recent
address.
Although use of the NCOA database will result in improved delivery
in most cases, such use does not completely eliminate the taxpayer's
need to provide the IRS with clear and concise notification of a
different address. For instance, if the taxpayer changes the address of
a residence or business and submits a Form 3575 with the USPS, but does
not wish to change the taxpayer's address for purposes of IRS
correspondence, then the taxpayer must notify the IRS as provided in
Rev. Proc. 90-18. It should be noted, however, that even if the
taxpayer notifies the IRS to continue using the old address for IRS
correspondence, the USPS may forward the correspondence to the address
on the USPS Form 3575.
Licensing Agreement with USPS
To gain access to the NCOA database, the IRS has applied to the
USPS to become a limited licensee of the NCOA database. As a limited
licensee, the IRS will receive from the USPS a copy of the entire
thirty-six month NCOA database and periodic updates thereto in
electronic format. The USPS will not have access to confidential return
information as a result of this process. Moreover, unlike organizations
that have entered into general licensing agreements with the USPS for
use of the NCOA database, the IRS will not provide name and address
matching services to commercial customers. Rather, the IRS will only
use the NCOA database to update taxpayers' addresses maintained in the
automated master file in the manner prescribed by these regulations.
The IRS and the Treasury Department invite comments regarding whether
the IRS should become a licensee for the limited purpose of updating
its automated master file.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It also has
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these regulations, and because
these regulations do not impose a collection of information on small
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f) of the Internal Revenue Code, this
notice of proposed rulemaking will be submitted to the Chief Counsel
for Advocacy of the Small Business Administration for comment on its
impact on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any electronic or written comments (a
signed original and eight (8) copies) that are submitted timely to the
IRS. The IRS and Treasury Department request comments on the clarity of
the proposed rules and how they can be made easier to understand. All
comments will be available for public inspection and copying. A public
hearing may be scheduled if requested by any person that timely submits
comments. If a public hearing is scheduled, notice of the date, time,
and place for the hearing will be published in the Federal Register.
Drafting Information: The principal author of these regulations is
Charles A. Hall, Office of Assistant Chief Counsel (Income Tax and
Accounting). However, other personnel from the IRS and Treasury
Department participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are proposed to be amended as
follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. In Sec. 1.468A-5, paragraph (c)(1)(ii) is amended by adding
a sentence at the end of the paragraph to read as follows:
Sec. 1.468A-5 Nuclear decommissioning fund qualification requirements;
prohibitions against self-dealing; disqualification of nuclear
decommissioning fund; termination of fund upon substantial completion
of decommissioning.
* * * * *
(c) * * *
(1) * * *
(ii) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter.
* * * * *
Par. 3. Sectioni 1.503(a)-1 is amended by adding a sentence at the
end of the concluding text of paragraph (c) to read as follows:
Sec. 1.503(a)-1 Denial of exemption to certain organizations engaged
in prohibited transactions.
* * * * *
(c) * * *
* * * For further guidance regarding the definition of last known
address, see Sec. 301.6212-2 of this chapter.
* * * * *
Par. 4. In Sec. 1.547-2, paragraph (b)(1)(v) is amended by adding a
sentence after the third sentence of the paragraph to read as follows:
Sec. 1.547-2 Requirements for deficiency dividends.
* * * * *
(b) * * *
(1) * * *
(v) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter. * * *
* * * * *
Par. 5. In Sec. 1.856-6, paragraph (g)(5) is amended by adding a
sentence after the first sentence of the paragraph to read as follows:
Sec. 1.856-6 Foreclosure property.
* * * * *
(g) * * *
(5) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter. * * *
* * * * *
Par. 6. In Sec. 1.860-2, paragraph (b)(1)(ii) is amended by adding
a sentence after the fourth sentence of the paragraph to read as
follows:
Sec. 1.860-2 Requirements for deficiency dividends.
* * * * *
(b) * * *
(1) * * *
(ii) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter. * * *
* * * * *
Par. 7. In Sec. 1.963-6, paragraph (c)(5) is amended by adding a
sentence after the second sentence of the paragraph to read as follows:
Sec. 1.963-6 Deficiency distribution.
* * * * *
[[Page 63771]]
(c) * * *
(5) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter. * * *
* * * * *
Par. 8. In Sec. 1.992-3, paragraph (c)(3)(iv) is amended by adding
a sentence after the third sentence of the paragraph to read as
follows:
Sec. 1.992-3 Deficiency distributions to meet qualification
requirements.
* * * * *
(c) * * *
(3) * * *
(iv) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter. * * *
* * * * *
Par. 9. In Sec. 1.6081-2, paragraph (f) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 1.6081-2 Automatic extension of time to file partnership return
of income.
* * * * *
(f) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter.
* * * * *
Par. 10. In Sec. 1.6081-3, paragraph (d) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 1.6081-3 Automatic extension of time for filing corporation
income tax returns.
* * * * *
(d) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter.
* * * * *
Par. 11. In Sec. 1.6081-4, paragraph (c) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 1.6081-4 Automatic extension of time for filing individual income
tax returns.
* * * * *
(c) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter.
* * * * *
Par. 12. In Sec. 1.6081-6, paragraph (d) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 1.6081-6 Automatic extension of time to file trust income tax
return.
* * * * *
(d) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter.
* * * * *
Par. 13. In Sec. 1.6081-7, paragraph (d) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 1.6081-7 Automatic extension of time to file Real Estate Mortgage
Investment Conduit (REMIC) income tax return.
* * * * *
(d) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2 of this chapter.
* * * * *
PART 301--PROCEDURE AND ADMINISTRATION
Par. 14. The authority citation for part 301 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 15. In Sec. 301.6110-4, paragraph (c)(3) is amended by adding
a sentence at the end of the paragraph to read as follows:
Sec. 301.6110-4 Communications from third parties.
* * * * *
(c) * * *
(3) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2.
* * * * *
Par. 16. In Sec. 301.6110-5, paragraph (b)(4) is amended by adding
a sentence at the end of the paragraph to read as follows:
Sec. 301.6110-5 Notice and time requirements; actions to restrain
disclosure; actions to obtain additional disclosure.
* * * * *
(b) * * *
(4) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2.
* * * * *
Par. 17. In Sec. 301.6110-6, paragraph (b)(2)(v) is amended by
adding a sentence at the end of the paragraph to read as follows:
Sec. 301.6110-6 Written determinations issued in response to requests
submitted before November 1, 1976.
* * * * *
(b) * * *
(2) * * *
(v) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2.
* * * * *
Par. 18. Section 301.6212-2 is added to read as follows:
Sec. 301.6212-2 Definition of last known address.
(a) General rule. Except as provided in paragraph (b)(2) of this
section, a taxpayer's last known address is the address that appears on
the taxpayer's most recently filed and properly processed Federal tax
return, unless the Internal Revenue Service (IRS) is given clear and
concise notification of a different address.
(b) Address obtained from third party--(1) In general. Except as
provided in paragraph (b)(2) of this section, change of address
information that a taxpayer provides to a third party, such as a payor
or another government agency, is not clear and concise notification of
a different address for purposes of determining a last known address
under this section.
(2) Exception for address obtained from the United States Postal
Service--(i) Annual update. Annually, the IRS will update taxpayer
addresses maintained in IRS records by referring to data accumulated
and maintained in the United States Postal Service (USPS) National
Change of Address database that retains change of address information
for thirty-six months (NCOA database). Except as provided in paragraph
(b)(2)(ii) of this section, if the taxpayer's name and last known
address in IRS records match the taxpayer's name and old mailing
address contained in the NCOA database, within certain tolerances, the
new address in the NCOA database is the taxpayer's last known address,
unless the IRS is given clear and concise notification of a different
address.
(ii) Update prior to mailing any notice, statement or document from
an IRS Service Center. Prior to mailing any notice, statement, or other
document, including a notice of deficiency, to the taxpayer from an IRS
Service Center, the IRS will update the taxpayer's last known address
by referring to the NCOA database. If the taxpayer's name and last
known address in IRS records match the taxpayer's name and old mailing
address contained in the NCOA database, within certain tolerances, the
new address in the NCOA database is the taxpayer's last known address,
unless the IRS is given clear and concise notification of a different
address.
(iii) Duration of address obtained from NCOA database. The address
obtained from the NCOA database under paragraph (b)(2)(i) or (ii) of
this section is the taxpayer's last known address until one of the
following events occurs--
(A) The taxpayer files and the IRS properly processes a Federal tax
return with an address different from the address obtained from the
NCOA database; or
(B) The taxpayer provides the IRS with clear and concise
notification of a
[[Page 63772]]
change of address, as defined in procedures prescribed by the
Commissioner, that is different from the address obtained from the NCOA
database.
(3) Examples. The following examples illustrate the rules of
paragraph (b)(2) of this section:
Example 1. (i) A is an unmarried taxpayer. The address on A's
1999 Form 1040, U.S. Individual Income Tax Return, filed on April
14, 2000, and 2000 Form 1040 filed on April 13, 2001, is 1234
Anyplace Street, Anytown, USA 43210. On May 15, 2001, A informs the
USPS of a new permanent address (9876 Newplace Street, Newtown, USA
12345) using the USPS Form 3575, ``Official Mail Forwarding Change
of Address Form.'' The change of address is included in the USPS
NCOA database.
(ii) In June 2001 the IRS determines a deficiency for A's 1999
tax year and prepares to issue the notice of deficiency. When the
IRS mails the notice of deficiency from the Service Center, the IRS
refers to the NCOA database and updates the taxpayer's last known
address to 9876 Newplace Street, Newtown, USA 12345. On June 15,
2001, the IRS mails a notice of deficiency to A at 9876 Newplace
Street, Newtown, USA 12345. For purposes of section 6212(b), the
notice of deficiency mailed on June 15, 2001, is mailed to A's last
known address.
Example 2. (i) The facts are the same as in Example 1, except
that instead of determining a deficiency for A's 1999 tax year in
June 2001, the IRS determines a deficiency for A's 1999 tax year in
December 2001. The IRS performs its annual update of addresses in
November 2001. At this time the taxpayer's address maintained in IRS
records was changed to 9876 Newplace Street, Newtown, USA 12345.
(ii) On December 14, 2001, the IRS mails a notice of deficiency
to A at 9876 Newplace Street, Newtown, USA 12345. For purposes of
section 6212(b), the notice of deficiency mailed on December 14,
2001, is mailed to A's last known address.
Example 3. (i) B is an unmarried taxpayer. The address on B's
1999 Form 1040, U.S. Individual Income Tax Return, filed on April
14, 2000, is 1234 Main Street, Mytown, USA 56789. In September 2000,
B informs the USPS of a new permanent address (4321 Maple Street,
Ourtown, USA 54321) using the USPS Form 3575, ``Official Mail
Forwarding Change of Address Form.''
(ii) In September 2000, the IRS determines a deficiency for B's
1998 tax year and prepares to issue the notice of deficiency in the
Service Center. On September 15, 2000, the IRS refers to the NCOA
database to update the taxpayer's last known address. Because B did
not inform the USPS of a change of address in sufficient time to be
included in the NCOA database on September 15, 2000, the NCOA
database does not yet contain any address information for B. On
September 15, 2000, the IRS mails a notice of deficiency to B at
1234 Main Street, Mytown, USA 56789. For purposes of section
6212(b), the notice of deficiency mailed on September 15, 2000, is
mailed to B's last known address.
Example 4. (i) C is an unmarried taxpayer. The address on C's
1998 Form 1040, U.S. Individual Income Tax Return, filed on April
15, 1999, and 1999 Form 1040 filed on April 14, 2000, is 2468 Spring
Street, Little City, USA 97531. On August 15, 2001, C informs the
USPS of a new permanent address (8642 Peachtree Street, Big City,
USA 13579) using the USPS Form 3575, ``Official Mail Forwarding
Change of Address Form.'' The IRS performs its annual update of
addresses in November 2001.
(ii) In September 2001 the IRS district office for Little City,
USA determines a deficiency for C's 1998 tax year and prepares to
issue the notice. When the IRS mails the notice of deficiency from
the district office, the IRS does not refer to the NCOA database
because IRS systems are not capable of checking the NCOA database
for individual mailings other than for Service Center
correspondence. On September 17, 2001, the IRS mails a notice of
deficiency for tax year 1998 to C at 2468 Spring Street, Little
City, USA 97531. For purposes of section 6212(b), the notice of
deficiency mailed on September 17, 2001, is mailed to C's last known
address.
(iii) Also in September 2001, the IRS determines a deficiency
for C's 1999 tax year. When the IRS mails this notice of deficiency
from the IRS Service Center, the IRS refers to the NCOA database and
updates the taxpayer's last known address to 8642 Peachtree Street,
Big City, USA 13579. On September 18, 2001, the IRS mails a notice
of deficiency for tax year 1999 to C at 8642 Peachtree Street, Big
City, USA 13579. For purposes of section 6212(b), the notice of
deficiency mailed on September 18, 2001, is mailed to C's last known
address.
Example 5. The facts are the same as in Example 4, except that
the IRS Service Center mails the notice of deficiency for C's 1999
tax year on September 10, 2001, after updating the taxpayer's last
known address by referring to the NCOA database. On September 17,
2001, when the district office prepares to mail the notice of
deficiency for C's 1998 tax year by referring to the IRS's automated
master file, the taxpayer's address will appear as 8642 Peachtree
Street, Big City, USA 13579. Thus, in both cases, for purposes of
section 6212(b), the taxpayer's last known address is 8642 Peachtree
Street, Big City, U.S.A. 13579.
(c) Last known address for all notices, statements, and documents.
The rules in paragraphs (a) and (b) of this section apply for purposes
of determining whether all notices, statements, or other documents are
mailed to a taxpayer's last known address whenever the term last known
address is used in the Internal Revenue Code or the regulations
thereunder.
(d) Effective Date--(1) In general. Except as provided in paragraph
(d)(2) of this section, the rules prescribed by this section apply to
all notices, statements, and other documents mailed on or after May 1,
2000.
(2) Individual moves in the case of joint filers. In the case of
taxpayers who file joint returns under section 6013, if the NCOA
database contains change of address information for only one spouse,
paragraphs (b)(2) and (3) of this section will not apply to notices,
statements, and other documents mailed before January 1, 2001.
Par. 19. In Sec. 301.6303-1, paragraph (a) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 301.6303-1 Notice and demand for tax.
* * * * *
(a) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2.
* * * * *
Par. 20. In Sec. 301.6305-1, paragraph (b)(2)(ii) is revised to
read as follows:
Sec. 301.6305-1 Assessment and collection of certain liability.
* * * * *
(b) * * *
(2) * * *
(ii) The name, social security number, and last known address of
the individual owing the assessed amount. For further guidance
regarding the definition of last known address, see Sec. 301.6212-2;
* * * * *
Par. 21. In Sec. 301.6320-1T, paragraph (a)(1) is amended by adding
a sentence at the end of the paragraph to read as follows:
Sec. 301.6320-1T Notice and opportunity for hearing upon filing of
notice of Federal tax lien (temporary).
(a) * * * (1) * * * For further guidance regarding the definition
of last known address, see Sec. 301.6212-2.
* * * * *
Par. 22. In Sec. 301.6325-1, paragraph (f)(2)(ii)(a) is revised to
read as follows:
Sec. 301.6325-1 Release of lien or discharge of property.
* * * * *
(f) * * *
(2) * * *
(ii) * * *
(a) Mailing notice of the revocation to the taxpayer at his last
known address (see Sec. 301.6212-2 for further guidance regarding the
definition of last known address); and
* * * * *
Par. 23. In Sec. 301.6330-1T, paragraph (a)(1) is amended by adding
a sentence at the end of the paragraph to read as follows:
Sec. 301.6330-1T Notice and opportunity for hearing prior to levy
(temporary).
(a) * * * (1) * * * For further guidance regarding the definition
of last known address, see Sec. 301.6212-2.
* * * * *
[[Page 63773]]
Par. 24. In Sec. 301.6331-2, paragraph (a)(1) is amended by adding
a sentence after the second sentence of the paragraph to read as
follows:
Sec. 301.6331-2 Procedures and restrictions on levies.
(a) * * * (1) * * * For further guidance regarding the definition
of last known address, see Sec. 301.6212-2. * * *
* * * * *
Par. 25. Section 301.6332-2 is amended as follows:
1. Paragraphs (b)(1) introductory text, (b)(1)(i), and (b)(1)(ii)
are redesignated as paragraphs (b)(1)(i) introductory text,
(b)(1)(i)(A), and (b)(1)(i)(B), respectively.
2. In newly designated paragraph (b)(1)(i)(B), the text beginning
with the second sentence is designated as paragraph (b)(1)(ii).
3. Newly designated paragraph (b)(1)(ii) is amended by adding a
sentence after the second sentence of the paragraph. The addition reads
as follows:
Sec. 301.6332-2 Surrender of property subject to levy in the case of
life insurance and endowment contracts.
* * * * *
(b) * * * (1) In general. (i)* * *
(ii) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2. * * *
* * * * *
Par. 26. In Sec. 301.6335-1, paragraph (b)(1) is amended by adding
a sentence after the third sentence of the paragraph to read as
follows:
Sec. 301.6335-1 Sale of seized property.
* * * * *
(b) * * * (1) * * * For further guidance regarding the definition
of last known address, see Sec. 301.6212-2.
* * * * *
Par. 27. In Sec. 301.6503(c)-1, paragraph (a) is amended by adding
a sentence at the end of the paragraph to read as follows:
Sec. 301.6503(c)-1 Suspension of running of period of limitation;
location of property outside the United States or removal of property
from the United States; taxpayer outside of United States.
(a) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2.
* * * * *
Par. 28. In Sec. 301.6903-1, paragraph (c) is amended by adding a
sentence after the first sentence of the paragraph to read as follows:
Sec. 301.6903-1 Notice of fiduciary relationship.
* * * * *
(c) * * * For further guidance regarding the definition of last
known address, see Sec. 301.6212-2. * * *
* * * * *
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 99-30178 Filed 11-19-99; 8:45 am]
BILLING CODE 4830-01-U
