Ezel / IRS Rulings / 1039028
Chief Counsel Advice 1039028 Released October 1, 2010 Advice

Reportable transaction penalties after a taxpayer’s death

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This page covers one taxpayer's ruling from 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 resolved one taxpayer's situation on its specific facts, 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 Advice addresses penalties under IRC §§ 6707A and 6662A after a taxpayer’s death. The advice concludes that the § 6707A penalty is not joint and several liability of both spouses unless both participated in the reportable transaction. On the stated facts, the § 6707A penalty would be assessed against the deceased husband’s estate. The § 6662A addition to tax is joint and several liability of the deceased husband and spouse and applies to the relevant understatement.

Ruling snapshot

  • Question: How do §§ 6707A and 6662A apply to spouses when one spouse has died?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6662A, 6700, 6701, and 6707A; Reiserer v. United States, 479 F.3d 1160 (2007)

Full text (IRS public release)

ID: CCA_2010082715583366 Number: 201039028
Release Date: 10/1/2010
Office: ----------
UILC: 6707A.00-00, 6662A.00-00

From: -------------------------
Sent: Friday, August 27, 2010 3:58:36 PM
To: ---------------
Cc:
Subject: RE: Update regarding 6707A Penalty Application

Sorry for the delayed response. --------------------------------------------------- has looked into your
questions regarding the application of section 6707A and 6662A to the facts you presented. Based on
those facts, we agree that the current position is that the 6707A penalty is not a joint and several liability
of the husband and wife unless both spouses engaged/participated in the reportable transaction. Under
the facts presented, the 6707A penalty would be assessed against the deceased husband's estate. This
would be consistent with the treatment of other similar penalties assessed against a deceased taxpayer.
For example, penalties under section 6700/6701 have been assessed against a deceased promoter's
estate. See Reiserer v U.S. 479 F.3d 1160 (2007). The section 6662A addition to tax is a joint and
several liability (like the tax liability reported on the return and any additional tax, penalties, additions to
tax, and interest) of the deceased husband and spouse. It applies to any understatement with respect to
a reportable transaction and is not limited to the deceased husband.

If you have any further questions on this matter, please feel free to contact me.

Thanks.

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