Ezel / IRS Rulings / 201048033

CCA 201048033: IRS confirms the meaning of discovery year under a safe-harbor election

Number
201048033
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Fraud Penalty
Topics
Procedure, penalties, and administration
Code sections
§ 6663
Ruling dated
April 5, 2010
Publicly released
December 3, 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

Chief Counsel Advice responds to a question about Revenue Procedure 2009-20. The memorandum confirms that the reference to the same definition of “discovery year” applies to the question under discussion. It also directs the reader to section 4.02, which has requirements similar to section 4.04 and explains what qualifies as a loss under the safe-harbor election. The short memorandum provides interpretive advice rather than granting or denying a taxpayer request.

Ruling snapshot

  • Question: Does the relevant provision use the same definition of “discovery year,” and where are the related safe-harbor loss requirements explained?
  • Outcome: advice given
  • Key authorities: IRC § 6663; Rev. Proc. 2009-20, §§ 4.02 and 4.04.

Full text (IRS public release)

ID: CCA-451030-10 Number: 201048033
Release Date: 12/3/2010
Office:
UILC: 6663.00-00

From: ---------------
Sent: Monday 4/5/2010 10:30 AM
To:
Cc: ----------------------------
Subject: Rev. Proc 2009-20

I am writing to follow up on our telephone conversation last week. The answer to your question is yes, it refers to the same definition of "discovery year." You may want to also take a look at section 4.02. This definition has similar requirements to section 4.04, and it explains what is a qualifying loss under the "safe harbor" election.

Please let me know if you have any questions.

Thank you,

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