Ezel / IRS Rulings / 201101012

CCA 201101012: A partnership may owe the maximum penalty for undisclosed reportable transactions

Number
201101012
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Penalty for Failure to Include Reportable Transaction Information with Return
Topics
Procedure, penalties, and administration
Code sections
§ 6011, § 6707A
Ruling dated
October 6, 2010
Publicly released
January 7, 2011
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 2011, 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 2011
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 addressed the penalty for a partnership's failure to disclose a listed or reportable transaction. It states that, when the partnership had a disclosure obligation under IRC § 6011 and the regulations, it is liable for the penalty under IRC § 6707A. Because a partnership is not a taxpaying entity, there is no decrease in tax on which to compute the penalty, so the penalty is the maximum permitted by the law described in the advice.

Ruling snapshot

  • Question: What penalty applies when a partnership fails to disclose a listed or reportable transaction?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6011 and 6707A

Full text (IRS public release)

ID: CCA_2010100613175426 Number: 201101012
Release Date: 1/7/2011
Office: --------------
UILC: 6707A.00-00

From: -----------------------------
Sent: Wednesday, October 06, 2010 1:17:55 PM
To: -------------------
Cc: ------------------
Subject: RE: Section 6707A

As long as the partnership had an obligation to disclose a listed or reportable transaction under section 6011 and the regulations, it is liable for the 6707A for failing to so disclose. You are correct that because a partnership is not a taxpaying entity there is no decrease in tax on which to compute the penalty. Instead, the penalty will be the maximum penalty permitted by the new law.

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