Denial of bond-penalty waiver is not appealable

Plain-English summary

Chief Counsel considered whether a taxpayer could appeal a Tax Exempt Bonds decision denying a request to waive the penalty imposed by section 148(f)(7). After reviewing the relevant authorities, the office concluded that the taxpayer had no appeal right from that denial. The waiver request was governed by section 5.02 of Revenue Procedure 2005-40.

Ruling snapshot

• Question: Whether a taxpayer may appeal denial of a section 148(f)(7) penalty-waiver request
• Outcome: Advice that no appeal right exists
• Key authorities: I.R.C. § 148(f)(7); Rev. Proc. 2005-40, § 5.02

Full text (IRS public release)

ID:         CCA-08311055-15                                      [Third Party Communication:

UILC:       148.09-00                                            Date of Communication: Month DD, YYYY]

Number: 201539029
Release Date: 9/25/2015
From: --------------------
Sent: Monday, August 31, 2015 10:55 AM
To: --------------------
Cc: --------------------------------------------------------------------------------------------
Subject: Appeal of a denial of a waiver request of a section 148(f)(7) penalty


Several weeks ago -------- asked whether a taxpayer has appeal rights if TEB denies a
request under 5.02 of Rev. Proc. 2005-40 to waive the penalty imposed under section
148(f)(7). I asked PA for a response and received it Friday. After thoroughly reviewing
the relevant authorities, PA concluded that a taxpayer cannot appeal TEB’s decision to
not waive the penalty. If you have any questions please do not hesitate to call

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