Ezel / IRS Rulings / 201018007

CCA 201018007: Counsel advised on assessing additions to tax before a deficiency notice

Number
201018007
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Procedure for Assessing Certain Additions to Tax; Failure to File Tax Returns or Pay Tax
Topics
Procedure, penalties, and administration
Code sections
§ 6501, § 6651
Publicly released
May 7, 2010
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 2010, 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 2010
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

An IRS Chief Counsel email addressed when additions to tax under IRC § 6651 could be assessed in relation to a filed return and a statutory notice of deficiency. Counsel advised that, if the Service Center had not assessed the § 6651(a)(2) penalty, it could be assessed before the notice was sent, and recommended doing so if possible. The message also explained that the § 6651(a)(3) penalty would be appropriate after a deficiency was determined, notice and demand were made, and the taxpayer failed to pay within the applicable period. It further discussed why the assessment limitations period should not be controlled by the general three-year period in § 6501 for the penalty described.

Ruling snapshot

  • Question: When could penalties under IRC § 6651 be assessed before or after a statutory notice of deficiency?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6501 and 6651(a)(2)-(3)

Full text (IRS public release)

ID: CCA_2010041213281464 Number: 201018007
Release Date: 5/7/2010
Office: --------------
UILC: 6665.02-00, 6651.00-00

From: ------------------
Sent: Monday, April 12, 2010 1:28:17 PM
To: --------------------------
Cc: --------------------
Subject: RE: Urgent: 6651(a)(2) question ---------

If not assessed by the Service Center, then the 6651(a)(2) penalty with respect to the filed return could be assessed now without the penalty being in the SNOD. The limitations period on assessment shouldn't be controlled by the 3-year period in section 6501 because the penalty accrues over a 50-month period and could not be assessed in full if a 3-year assessment period applied. Nonetheless, you should try to assess before sending the SNOD if you can.

In response to your second question, by way of example, the section 6651(a)(3) penalty would be appropriate to assert after a deficiency is determined, notice and demand for payment of the deficiency is made and the taxpayer fails to pay within the applicable 10- or 21-day period.

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace