Supplement filing year controlled the penalty amount

Number
201935012
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Statements Reporting Value Of Property In Estate
Code sections
§ 6035, § 6501
Ruling dated
May 30, 2019
Publicly released
August 30, 2019

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2019, 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 2019
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

This brief Chief Counsel email addressed a supplement that was due in one year and filed the next year. It advised that the failure to file occurred in the due year, and that year determined the penalty amount. The email separately explained that the assessment limitation period was not tied directly to the time of the failure. Under section 6501(c)(3), that period did not begin until a return was filed.

Ruling snapshot

  • Question: Which year determines the penalty for a late supplement, and when does the assessment period begin?
  • Outcome: advice given, the due year controlled the penalty and the assessment period began only when a return was filed
  • Key authorities: IRC § 6501(c)(3)

Full text (IRS public release)

ID:        CCA_2019053016355347
UILC:      6035.00-00

Number: 201935012
Release Date: 8/30/2019
From:
Sent: Thursday, May 30, 2019 4:35:54 PM
To:
Cc:
Bcc:
Subject: FW: For Review


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In regard to your second bullet, below, where the supplement was due in 2025 and not
filed until 2026, the failure to file occurred in 2025 and that would determine the amount
of the penalty. Calculating the ASED is not directly tied to the time of the failure,
though, because under section 6501(c)(3) the ASED does not begin to run until a return
is filed.

Thanks,

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