Ezel / IRS Rulings / 1221020
Chief Counsel Advice 1221020 Released May 25, 2012 Advice

CCA 1221020: Chief Counsel explains a section 6662A penalty calculation rule

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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 a question about the accuracy-related penalty under IRC § 6662A. It quoted § 6662A(b)(1), which says that certain reductions in excess deductions over gross income and in capital losses are treated as increases in taxable income for purposes of the penalty provision. The short advice stated that this statutory language answered the question presented.

Ruling snapshot

  • Question: How does IRC § 6662A(b)(1) treat certain reductions in deductions and capital losses when calculating the penalty?
  • Outcome: Advice given
  • Key authorities: IRC § 6662A(b)(1)

Full text (IRS public release)

ID: CCA-224840-12 Number: 201221020
Release Date: 5/25/2012
Office: -------------
UILC: 6662A.00-00

From: ------------------
Sent: Friday, February 24, 2012 8:40 AM
To: -------------------
Cc:
Subject: FW: 6662A questions ---------

The answer is in the flush language of section 6662A(b)(1), which says " For purposes of subparagraph
(A), any reduction of the excess of deductions allowed for the taxable year over gross income for such
year, and any reduction in the amount of capital losses which would (without regard to section 1211) be
allowed for such year, shall be treated as an increase in taxable income."

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