CCA 201210033: Failure to file Form 1042 triggers the § 6651(a)(1) penalty

Plain-English summary

Chief Counsel advice concludes that failing to file Form 1042 results in the addition to tax under IRC § 6651(a)(1). Form 1042 is a return required under IRC § 6011, which falls within the relevant part of Subchapter A of Chapter 61. The advice cites Treasury regulations and federal tax cases in support of that conclusion.

Ruling snapshot

• Question: Does failure to file Form 1042 result in the penalty under IRC § 6651(a)(1)?
• Outcome: Advice given.
• Key authorities: IRC §§ 6651(a)(1) and 6011(a); Treas. Reg. §§ 1.6011-1(c) and 1.1461-1(b)(1); Ellwest Stereo Theatres of Memphis, Inc. v. Commissioner, T.C. Memo. 1995-610; New York Guangdong Finance, Inc. v. Commissioner, 588 F.3d 889 (5th Cir. 2009).

Full text (IRS public release)

ID: CCA_2012013112540859 Number: 201210033
Release Date: 3/9/2012
Office: --------------
UILC: 6651.00-00

From: ---------------------------
Sent: Tuesday, January 31, 2012 12:54:21 PM
To: ---------------------
Cc: ---------------------------------------------------
Subject: FW: 6651 applicable to failure to file form 1042?

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An addition to tax is imposed under section 6651(a)(1) for failure to file a return required under the
authority of Subchapter A of Chapter 61 (other than Part III) within the prescribed period. § 6651(a)(1).
Form 1042 is a return required under the authority §6011, which is in Part II of Subchapter A of Chapter

61. §6011(a); Treas. Reg. §1.6011-1(c); Treas. Reg. § 1.1461-1(b)(1). See Ellwest Stereo Theatres of
    Memphis, Inc. v. Commissioner, T.C. Memo. 1995-610, at *4; New York Guangdong Finance, Inc. v.
    Commissioner, 588 F.3d 889 (5th Cir. 2009). Therefore, failure to file Form 1042 will result in a penalty
    under §6651(a)(1).

Thanks,
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