Ezel / IRS Rulings / 200912017

CCA 200912017: A 30 percent penalty could apply when transaction disclosure was late

Number
200912017
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Disclosure of Reportable Transactions
Topics
Procedure, penalties, and administration
Code sections
§ 6011, § 6662A
Ruling dated
February 18, 2009
Publicly released
March 20, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel addressed the 30 percent penalty associated with failure to disclose a reportable transaction. The penalty could apply if the taxpayer did not disclose the transaction when disclosure was due. That disclosure deadline might occur well after the taxpayer filed a return reflecting participation in the transaction. The brief released email does not include the underlying question or transaction facts.

Ruling snapshot

  • Question: What timing controlled possible application of the 30 percent penalty for nondisclosure?
  • Outcome: Advice given: failure to disclose when disclosure was due could trigger it, even if that deadline came well after the related return was filed.
  • Key authorities: IRC §§ 6011, 6662A.

Full text (IRS public release)

ID: CCA_2009021814511964 Number: 200912017
Release Date: 3/20/2009
Office: --------------
UILC: 6011.01-00

From: ------------------
Sent: Wednesday, February 18, 2009 2:51:25 PM
To: ------------------------------------------------------------------
Cc: -------------------------------------------------------------
Subject: RE: 6662A issue ----------

No. I think the 30% penalty could apply if the taxpayer does not disclose at the time the disclosure is due,
which may be long after filing a return reflecting participation in the transaction.

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