Final Tax Shelter List Maintenance Regulations: The IRS Narrows It’s Scope
June 25, 2003
David Blum, partner in the firm’s Taxation Service Group, wrote an article that was published in the Journal of Taxation of Corporate Transactions. The article, “Final Tax Shelter List Maintenance Regulations: The IRS Narrows It’s Scope,” focuses on one aspect of the IRS’s “effective web of information”; namely-tax shelter list maintenance.
Tax shelter list maintenance requires accountants, attorneys, bankers and others to create and maintain a list that can be made available to the IRS for inspection upon their request of people who engage in certain potentially abusive tax shelters, provided such advisor makes or provides a “tax statement” in connection with the transaction and receives a “minimum fee.”
The Final Regulations satisfied many of the commentators’ concerns by narrowing the scope of both the tax shelter disclosure rules and the definition of a “material advisor.” The IRS also removed certain specific rules from the Temporary Tax Shelter Regulations and issued them in revenue procedures along with the announcement of the Final Tax Shelter Regulations to increase the overall flexibility of the Tax Shelter Regulation regime.