Ezel / IRS Rulings / 1213026
Chief Counsel Advice 1213026 Released March 30, 2012 Advice

CCA 1213026: Carryback-year underpayments may be tied to source-year transactions for section 6662(b)(6)

Apply this to your situation

This page covers one taxpayer's ruling from 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 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

Chief Counsel Advice addressed the effective date and transition treatment for the accuracy-related penalty under IRC § 6662(b)(6). That provision applies to underpayments attributable to transactions entered into after March 30, 2010. The advice said that, although regulations had not yet been issued, it would be consistent with the existing regulations to treat an underpayment in a carryback year as attributable to the transaction that produced the loss in the source year. It cited regulations addressing carrybacks and accuracy-related penalties.

Ruling snapshot

  • Question: How should a carryback-year underpayment be treated under the transition rule for IRC § 6662(b)(6)?
  • Outcome: Advice given
  • Key authorities: IRC § 6662(b)(6); Treas. Reg. §§ 1.6662-3(d), 1.6662-4(c), and 1.6662-5(c)

Full text (IRS public release)

ID: CCA_2012030509040164 Number: 201213026
Release Date: 3/30/2012
Office: -------------
UILC: 6662.00-00

From: ------------------
Sent: Monday, March 05, 2012 9:04:05 AM
To: ----------------
Cc: -----------------------------------------------
Subject: FW: Transition Rules for §6662(b)(6)

Section 6662(b)(6) is effective for underpayments attributable to transactions entered
into after 3/30/10. We don't have any regs out for that yet, but it would be consistent
with how the current regs generally treat carrybacks to treat an underpayment in a carryback
year as attributable to the transaction giving rise to the loss in the source
year. See 1.6662-3(d), 1.6662-4(c), 1.6662-5(c)

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2012, 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.