A section 6020(b) return may support a section 6651(a)(2) penalty

Plain-English summary

Counsel advised that a return prepared under section 6020(b) might be necessary to recover a section 6651(a)(2) failure-to-pay penalty. If the IRS chose to pursue the penalty, counsel recommended that an authorized individual sign the substitute-for-return Form 8804 with the person's title and note that it was signed under section 6020(b). The advice cited Spurlock v. Commissioner and Internal Revenue Manual provisions.

Ruling snapshot

• Question: What return and signing procedure may support a section 6651(a)(2) penalty when the taxpayer has not paid?
• Outcome: Advice given
• Key authorities: IRC §§ 6020(b), 6651(a)(2), and 6651(g); Spurlock v. Commissioner, T.C. Memo. 2003-124; IRM 1.2.2.5.2, 5.18.2.2(2), 5.18.2.4.28(2)

Full text (IRS public release)

ID: CCA-941212-09 Number: 200945041
Release Date: 11/6/2009
Office: --------------
UILC: 6651.20-00

From: --------------------------
Sent: Friday 09/04/2009 12:12pm
To: ------------------------------------------------------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
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Subject: RE: W-8BEN (IRC 1441 - 1446) ---------

A section 6020(b) return may be necessary to recovery of a section 6651(a)(2) failure to pay penalty.
See I.R.C. 6651(g).

We recommend that, if the Service decides to pursue a section 6651(a)(2) failure to pay penalty, then an
individual with authority under Delegation Order 182 to execute a Substitute for Return sign the SFR
Form 8804, with her title, and notate "signed pursuant to section 6020(b)". See Spurlock v.
Commissioner, T.C.Memo. 2003-124; IRM 1.2.2.5.2; IRM 5.18.2.2(2); IRM 5.18.2.4.28(2).