Ezel / IRS Rulings / 201650015

Accuracy penalty belongs in computational adjustment notice

Number
201650015
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Coordination with Deficiency Proceedings
Topics
Procedure, penalties, and administration
Code sections
§ 6230
Ruling dated
September 28, 2016
Publicly released
December 9, 2016
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 2016, 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 2016
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 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 addressed where an accuracy-related penalty should appear when coordinating affected-item and deficiency procedures. It advised that the penalty should not be included in the statutory notice of deficiency because section 6230(a)(2) removes it from deficiency procedures. The penalty could properly be included in the notice of computational adjustment. The email provides no further factual detail.

Ruling snapshot

  • Question: Should the accuracy-related penalty appear in the statutory notice of deficiency or the computational adjustment notice?
  • Outcome: advice given
  • Key authorities: IRC § 6230(a)(2)

Full text (IRS public release)

ID: CCA_2016092808375507
UILC: 6230.01-00

Number: 201650015
Release Date: 12/9/2016
From:
Sent: Wednesday, September 28, 2016 8:37:56 AM
To:
Cc:
Bcc:
Subject: RE: Affected Item SNOD - accuracy-related penalty

--------,

The accuracy-related penalties should NOT be in the SND. They are NOT subject to
deficiency procedures. I.R.C. 6230(a)(2). Yes, it is proper in the notice of computational
adjustment.

Thanks,
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