Ezel / IRS Rulings / 200935025

CCA 200935025: Reportable-transaction penalty calculation

Number
200935025
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Miscellaneous Issues
Topics
Other topics
Code sections
§ 6662, § 6662A, § 6707A, § 6110
Ruling dated
February 18, 2009
Publicly released
August 28, 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

This Chief Counsel Advice states that the statutory penalty applies to the transaction under review. It views the 30-percent penalty as a way to calculate the penalty for failure to disclose the transaction, in addition to the separate penalty under IRC § 6707A. It also notes that the 20-percent penalty under IRC § 6662A may not differ substantially from a 20-percent penalty otherwise applicable under IRC § 6662.

Ruling snapshot

  • Question: How do the 20-percent and 30-percent penalties apply to an undisclosed reportable transaction?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6662, 6662A, and 6707A.

Full text (IRS public release)

ID: CCA-218134-09 Number: 200935025
Release Date: 8/28/2009
Office: -------------
UILC: 9999.00-00

From: ------------------
Sent: Wed 2/18/2009 1:40 PM
To: ------------------------------------------------------------------ Cc: --------------------------------------------- Subject: RE: 6662A issue

Under the text of the statute the penalty applies. I view the 30% penalty as being a way to calculate the penalty on failure to disclose the transaction (in addition to failing to disclose being penalized under 6707A). The 20% penalty will probably not differ that much from a 20% penalty that would otherwise apply under 6662 in most cases. ---------
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