Last known address.

Proposed regulations (REG-104939-99) define "last known address" for purposes of mailing deficiency and other notices, statements and documents to a taxpayer's last known address. The definition is consistent with Barbara Abeles, 91 TC 1019 (1988), acq.; a last known address would be 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.

In the absence of a more recent address, the proposed rules would permit the IRS to use as a last known address one obtained from the U.S. Postal Service (USPS).The IRS could also consult a third-party source for the taxpayer's most current address.

Beginning in May 2000, the IRS will refer to the USPS's National Change of Address (NCOA) database to obtain a last known address. Prop. Regs. Sec. 301.6212-2 would apply to other notices, statements and documents mailed by the IRS to a taxpayer's last known address under the Code or regulations.

The computerized NCOA database obtains change-of-address information from USPS Form 3575, Official Mail Forwarding Change of Address Form. Such address changes are retained for 36 months. The Martinsburg Computing Center would access the database annually to update all taxpayer address records maintained in the IRS's automated master file. Due to IRS system limits, if taxpayers file jointly, but the NCOA database contains change-of-address information for only one spouse, the earliest that this rule would apply is January 2001. Forthcoming guidance will indicate when this rule will apply to joint filers.

Beginning in May 2000, the IRS would be required to access the database to determine whether a taxpayer submitted Form 3575 with a more recent address before mailing correspondence to him. If he subsequently files a return with an address other than that listed on Form 3575, the last known address would be the address on the later filed and properly processed return. Similarly, if the taxpayer submits a Form 8822, Change of Address, or other clear and concise notification of an address change to the IRS after submitting Form 3575, the last known address will be the address on the Form 8822 or on such notification.

Comments on the proposed regulations can be submitted until Feb. 22, 2000, to:

IRS
Attn: CC:DOM:CORP:R
(REG-104939-99)
PO Box 7604
Ben Franklin Station
Room 5226
Washington, DC 20044

or on the Web at http://www.irs.gov/ tax_regs/regslist.html.