Ezel / IRS Rulings / 201202026

CCA 201202026: CCA addresses the gross valuation misstatement penalty

Number
201202026
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Reasonable Cause Exception
Topics
Procedure, penalties, and administration
Code sections
§ 6662, § 6664
Ruling dated
December 21, 2011
Publicly released
January 13, 2012
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 2012, 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 2012
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 reasonable-cause and good-faith exception for the 40 percent gross valuation misstatement penalty under IRC section 6662(h). The advice states that, when the property is charitable-deduction property, that exception does not apply. The memorandum gives only this brief conclusion.

Ruling snapshot

  • Question: Does the reasonable-cause or good-faith exception apply to the 40 percent gross valuation misstatement penalty for charitable-deduction property?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6662(h) and 6664

Full text (IRS public release)

ID: CCA_2011122108424964 Number: 201202026
Release Date: 1/13/2012
Office: --------------
UILC: 6664.03-00

From: ------------------
Sent: Wednesday, December 21, 2011 8:42:51 AM
To: ----------------
Cc:
Subject: FW: 6662(h) penalty post-Aug 17, 2006

So long as it is charitable deduction property, I agree that there is no reasonable cause/good faith
exception with respect to the 40% gross valuation penalty.

I wouldn't have a lot to say about the penalty, but I could talk about it just a little.

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