# 26 U.S.C. § 7121: Closing agreements

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s7121>. Cite pinpoints as 26 U.S.C. § 7121(a)(1).

## § 7121(a) Authorization

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.

## § 7121(b) Finality

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—

**§ 7121(b)(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

**§ 7121(b)(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.

## Regulations

- [Treas. Reg. § 301.7121-1](/26/reg/301.7121-1.md): Closing agreements. (interprets § 7121)

## Leading cases

- [Zaentz v. Commissioner, 90 T.C. 753 (1988)](https://www.courtlistener.com/opinion/4706769/zaentz-v-commissioner/)
- [United States v. Mohney, 949 F.2d 1397 (6th Cir. 1992)](https://www.courtlistener.com/opinion/572641/united-states-v-harry-v-mohney/)
- [Hudock v. Commissioner, 65 T.C. 351 (1975)](https://www.courtlistener.com/opinion/4704161/hudock-v-commissioner/)

## Connections

Cites: none

Cited by: § 547 Deduction for deficiency dividends; § 860 Deduction for deficiency dividends; § 1313 Definitions; § 6013 Joint returns of income tax by husband and wife; § 6103 Confidentiality and disclosure of returns and return information; § 7123 Appeals dispute resolution procedures; § 7206 Fraud and false statements

Derived from: 1939 § 3760; 1939 § 3761

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 849
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834