CCA 201105032: Fraudulent fuel tax credit claims are not mathematical errors

Plain-English summary

Chief Counsel advice considered whether intentional overstatements or fraudulent claims for fuel tax credits could be assessed using the mathematical or clerical error procedures in IRC § 6213. The advice concluded that the described situations were not mathematical errors and could not be assessed under those procedures. It distinguished the statutory definition of mathematical errors in § 6213(g)(2) from intentional or fraudulent credit claims.

Ruling snapshot

• Question: Can intentional or fraudulent fuel tax credit claims be assessed under the mathematical or clerical error procedures?
• Outcome: Advice given.
• Key authorities: IRC §§ 6213(b)(1), 6213(b)(2), and 6213(g)(2).

Full text (IRS public release)

ID: CCA_2010122917135447 Number: 201105032
Release Date: 2/4/2011
Office: --------------
UILC: 6213.07-01

From: ---------------------
Sent: Wednesday, December 29, 2010 5:13:56 PM
To: --------------------
Cc:
Subject: Fuel tax credits and math error

As we discussed over the phone, it is ---------position that the scenarios described in your memo are not math errors and cannot be assessed pursuant to math error procedures in section 6213(b)(1) and (2). Math errors are scenarios defined in section 6213(g)(2). You describe situations where taxpayers are intentionally overstating or fraudulently claiming fuel tax credits. Those are not math error scenarios. We therefore believe your answer and analysis with regard to question 8 in your memo to be incorrect.

Please let me know if you need anything further,

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