IRS advice that civil promoter penalties survive death

Number

201235017

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Promoting Abusive Tax Shelters; Penalties for Aiding and Abetting Understatement of Tax Liability

Topics

Procedure, penalties, and administration

Code sections

§ 6700, § 6701

Ruling dated

June 7, 2012

Publicly released

August 31, 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.

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 addresses whether penalties under sections 6700 and 6701 may be assessed against a promoter or preparer after death. The advice states that the penalties are civil rather than criminal. Criminal penalties die with the promoter, but civil penalties survive and may be assessed and collected from the promoter's estate. The advice cites Reiserer v. United States and notes that the position was also cited in a later Chief Counsel advice memorandum.

Ruling snapshot

Question: Can sections 6700 and 6701 civil penalties be assessed against a deceased promoter or preparer's estate?
Outcome: Advice given, civil penalties survive and may be collected from the estate.
Key authorities: IRC §§ 6700 and 6701; Reiserer v. United States, 479 F.3d 1160 (9th Cir. 2007)

Full text (IRS public release)

ID: CCA_2012060710373607 Number: 201235017
Release Date: 8/31/2012
Office: ----------
UILC: 6700.00-00, 6701.00-00

From: --------------------
Sent: Thursday, June 07, 2012 10:37:49 AM
To: ------------------------------------------------------------------------------ Cc: ------------------- Subject: Deceased Promoters

The 6700 and 6701 penalties can be assessed against promoters or preparers after death. The case is Reiserer v. U.S., 479 F.3d 1160 (9th Cir. 2007). The Court held that these penalties are civil rather than criminal. While criminal penalties die with the promoter, civil penalties survive and can be assessed and collected from the promoter's estate. This position regarding the assessment of penalties against a deceased promoter has been cited recently in CCA 201039028.

If you have any further questions, please let me know.

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