diff --git a/src/compiler/expressionToTypeNode.ts b/src/compiler/expressionToTypeNode.ts
index 0df3a399b8f..10cdb4bbc2c 100644
--- a/src/compiler/expressionToTypeNode.ts
+++ b/src/compiler/expressionToTypeNode.ts
@@ -731,6 +731,9 @@ export function createSyntacticTypeNodeBuilder(
             case SyntaxKind.ConstructorType:
             case SyntaxKind.FunctionExpression:
             case SyntaxKind.ArrowFunction:
+                // Don't report inference fallback for function expressions that are arguments to call expressions
+                const shouldReportFallback = !(node.kind === SyntaxKind.FunctionExpression || node.kind === SyntaxKind.ArrowFunction) || !isCallExpression(node.parent);
+                return createReturnFromSignature(node, symbol, context, shouldReportFallback);
             case SyntaxKind.JSDocFunctionType:
             case SyntaxKind.JSDocSignature:
                 return createReturnFromSignature(node, symbol, context);
@@ -968,7 +971,9 @@ export function createSyntacticTypeNodeBuilder(
         return failed;
     }
     function typeFromFunctionLikeExpression(fnNode: FunctionExpression | ArrowFunction, context: SyntacticTypeNodeBuilderContext) {
-        const returnType = createReturnFromSignature(fnNode, /*symbol*/ undefined, context);
+        // Don't report inference fallback for function expressions that are arguments to call expressions
+        const shouldReportFallback = !isCallExpression(fnNode.parent);
+        const returnType = createReturnFromSignature(fnNode, /*symbol*/ undefined, context, shouldReportFallback);
         const typeParameters = reuseTypeParameters(fnNode.typeParameters, context);
         const parameters = fnNode.parameters.map(p => ensureParameter(p, context));
         return syntacticResult(
diff --git a/src/compiler/transformers/declarations.ts b/src/compiler/transformers/declarations.ts
index 08a88dc776e..4b6941dc61f 100644
--- a/src/compiler/transformers/declarations.ts
+++ b/src/compiler/transformers/declarations.ts
@@ -94,7 +94,6 @@ import {
     isBinaryExpression,
     isBindingElement,
     isBindingPattern,
-    isCallExpression,
     isClassDeclaration,
     isClassElement,
     isComputedPropertyName,
@@ -332,13 +331,6 @@ export function transformDeclarations(context: TransformationContext): Transform
             reportExpandoFunctionErrors(node);
         }
         else {
-            // Don't report errors for function expressions that are arguments to call expressions
-            if (
-                (node.kind === SyntaxKind.FunctionExpression || node.kind === SyntaxKind.ArrowFunction) &&
-                isCallExpression(node.parent)
-            ) {
-                return;
-            }
             context.addDiagnostic(getIsolatedDeclarationError(node));
         }
     }