§7121 — Title 26 Internal Revenue Code | U.S. Code

Summary

The IRS can sign a written closing agreement with any person settling that person's tax liability for any period. Once approved, the agreement is final and conclusive for both sides. Unless someone shows fraud, malfeasance, or misrepresentation of a material fact, no government officer can reopen the settled matters or change the agreement, and no court proceeding can annul, modify, or set aside the agreement or anything done under it, such as an assessment, payment, or refund.

Title 26, §7121

Internal Revenue Code — Source: USLM XML via OLRC

(a)The Secretary is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of the person or estate for whom he acts) in respect of any internal revenue tax for any taxable period.

(b)If such agreement is approved by the Secretary (within such time as may be stated in such agreement, or later agreed to) such agreement shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact—

(1)the case shall not be reopened as to the matters agreed upon or the agreement modified by any officer, employee, or agent of the United States, and

(2)in any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.

Editorial Notes

Amendments

1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

§7121 Closing Agreements

Summary

Title 26, §7121

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata