Ezel / IRS Rulings / 201405015
Chief Counsel Advice 201405015 Released January 31, 2014 Advice

Restitution assessments require a court-ordered restitution amount

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This page covers one taxpayer's ruling from 2014, 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 2014
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 explains that the IRS's authority to assess criminal restitution under IRC § 6201(a)(4) depends on a court having ordered restitution in the first place. If a criminal court did not order restitution, a later assessment on that basis would be invalid, and the IRS should abate it under IRC § 6404(a). The advice recommends checking whether the judge ordered restitution orally even if the written Judgment and Commitment Order does not show it.

Ruling snapshot

  • Question: Can the IRS assess criminal restitution when the written sentencing order does not show that a court ordered restitution?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6201(a)(4), 6404(a).

Full text (IRS public release)

ID: CCA_2013121915590454
Office: --------------
UILC: 6201.01-06
Number: 201405015
Release Date: 1/31/2014
From: --------------------------
Sent: Thursday, December 19, 2013 3:59:18 PM
To: ---------------
Cc:
Subject: RE: question

Happy Holidays to you too!

The Service's authority to assess an amount of restitution under section 6201(a)(4) is predicated upon
an amount having been ordered as restitution in the first place. If no restitution was ordered by a court
in a criminal case, then any subsequent assessment on that basis would be invalid under 6201(a)(4). In
that case, the Service should abate the erroneous assessment under section 6404(a).

I'd recommend that you double check whether restitution was ordered orally by a judge even though it
may not appear on the related Judgment and Commitment Order (J&C). I have seen examples
where the clerk's clerical error on a J&C failed to capture the restitution orally pronounced by the judge
at the sentencing hearing.

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