Ezel / IRS Rulings / 1123034
Chief Counsel Advice 1123034 Released June 10, 2011 Advice

CCA 1123034: Three-year assessment limit applies to the section 6695A appraiser penalty

Apply this to your situation

This page covers one taxpayer's ruling from 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 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

This Chief Counsel Advice addresses the limitations period for the penalty imposed under IRC § 6695A on appraisers. It concludes that IRC § 6696(d) expressly requires the Service to assess that penalty within three years after the related return or refund claim was filed. The advice explains that Congress added the § 6695A penalty to the three-year limitations provision in the Tax Technical Corrections Act of 2007. It also states that earlier advice concluding there was no limitations period was drafted before the amendment and is no longer correct.

Ruling snapshot

  • Question: What assessment limitations period applies to the IRC § 6695A appraiser penalty?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6695, 6695A, 6696(d); Pension Protection Act of 2006; Tax Technical Corrections Act of 2007.

Full text (IRS public release)

ID: CCA_2011051307555350 Number: 201123034
Release Date: 6/10/2011
Office: --------------
UILC: 6695.00-00, 6696.02-00

From: -----------------------
Sent: Friday, May 13, 2011 7:55:55 AM
To: --------------------------------------------
Cc:
Subject: Assessment Period of Limitations for Section 6695A Penalty

Section 6696(d) of the Internal Revenue Code expressly provides that the Service must assess the
section 6695A appraiser penalty within three years after the return or claim for refund with respect to
which the penalty is assessed was filed. When section 6695A was first enacted in the Pension Protection
Act of 2006, section 6696(d)(1) did not originally provide a three year period of limitation on assessment
for the section 6695A penalty as it did for the penalties under sections 6694(a) and 6695. Congress,
however, amended section 6696(d) in the Tax Technical Corrections Act of 2007 to specifically include
this three year period of limitations on assessment for the section 6695A penalty. You inquired into the
advice provided in AM 2007-017, which stated that there was no period of limitations applicable to the
assessment of a penalty under section 6695A. The advice provided in AM 2007-0017 was drafted prior
to the 2007 amendment to section 6696(d)(1) and, therefore, is no longer correct advice.

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2011, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.