CCA 200911016: Assess the disclosure penalty for the return year requiring disclosure

Plain-English summary

Chief Counsel gave an initial view about the year for assessing a section 6707A disclosure penalty. When disclosure was required with a return for a particular tax year, the penalty should be assessed for that return's tax year. This matches the view that the assessment limitation period begins when the return that should have included the disclosure is filed.

Ruling snapshot

• Question: For which tax year should a section 6707A penalty be assessed when disclosure was required with a return?
• Outcome: Advice given: assess it for the tax year of the return that should have contained the disclosure.
• Key authorities: IRC §§ 6501 and 6707A.

Full text (IRS public release)

ID: CCA_2009020208362164 Number: 200911016
Release Date: 3/13/2009
Office: --------------
UILC: 6501.00-00/6707A.01-01

From: ------------------
Sent: Monday, February 02, 2009 8:36:23 AM
To: -------------------------
Cc: --------------------------------------------
Subject: RE: Assessment of 6707A penalty

I don't recall the issue coming up before.

Where the disclosure was supposed to occur with a return for a particular tax year, I believe the penalty should be assessed for the tax year of the return the disclosure should have been made with. In your example, that would be -------. I think this is best because we view the SOL on assessments as running from the filing of the return with which a disclosure should have been made (when disclosure is required with a return).