Ezel / IRS Rulings / 201138043

CCA 201138043: Section 6708 applies to list-maintenance failures before and after the 2004 amendments

Number
201138043
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Failure to Maintain Lists of Investors In Potentially Abusive Tax Shelters
Topics
Procedure, penalties, and administration
Code sections
§ 6708, § 6112, § 6110
Ruling dated
August 25, 2011
Publicly released
September 23, 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 effective scope of the penalty under IRC § 6708 for failing to maintain lists required by IRC § 6112(a). The advice concluded that section 6708 applies to every person required to maintain such a list, both before and after the 2004 amendments to section 6112(a). It relied on Notice 2004-80 and the technical explanation of the amendment, which describe the penalty as covering both current-law material advisers and organizers or sellers covered by the prior law.

Ruling snapshot

  • Question: Does the IRC § 6708 penalty apply to list-maintenance failures occurring before and after the 2004 amendments to IRC § 6112(a)?
  • Outcome: advice given
  • Key authorities: IRC §§ 6708 and 6112(a); Notice 2004-80, 2004-2 C.B. 963

Full text (IRS public release)

ID: CCA_2011082508182654 Number: 201138043
Release Date: 9/23/2011
Office: --------------
UILC: 6708.00-00

From: --------------------------
Sent: Thursday, August 25, 2011 8:18:49 AM
To: ----------------------
Cc: ----------------------------------------
Subject: RE: Section 6708 and effective dates

No, section 6708 applies to any person required to maintain a list under section 6112(a), both before and after the 2004 amendments to section 6112(a). See Notice 2004-80, 2004-2 C.B. 963; Technical Explanation of the Revenue Provisions of H.R. 4440, JCX-88-05, at pages 87-88 ("The provision clarifies that the penalty under section 6708 for failing to comply with the section 6112 list maintenance requirements applies to both (1) material advisors with respect to reportable transactions under present-law section 6112, and (2) organizers and sellers of potentially abusive tax shelters under prior-law section 6112.").

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace