26 U.S.C. § 6111 — Disclosure of reportable transactions

Page 3492 TITLE 26—INTERNAL REVENUE CODE § 6111 Subsec. (l)(1). Pub. L. 106–554, § 1(a)(7) [title III, § 304(c)(2)], inserted ‘‘or 6105’’ after ‘‘6104’’. 1999—Subsec. (b)(1). Pub. L. 106–170 inserted at end ‘‘Such term shall not include any advance pricing agreement entered into by a taxpayer and the Sec- retary and any background information related to such agreement or any application for an advance pricing agreement.’’ 1998—Subsec. (b)(1). Pub. L. 105–206, § 3509(a), sub- stituted ‘‘technical advice memorandum, or Chief Counsel advice’’ for ‘‘or technical advice memo- randum’’. Subsec. (f)(1). Pub. L. 105–206, § 3509(c)(1), substituted ‘‘Except as otherwise provided by subsection (i), the Secretary’’ for ‘‘The Secretary’’. Subsec. (i). Pub. L. 105–206, § 3509(b), added subsec. (i). Former subsec. (i) redesignated (j). Subsec. (j). Pub. L. 105–206, § 3509(b), redesignated sub- sec. (i) as (j). Former subsec. (j) redesignated (k). Subsec. (j)(1)(B), (2). Pub. L. 105–206, § 3509(c)(2), sub- stituted ‘‘subsection (g) or (i)(4)(B)’’ for ‘‘subsection (g)’’. Subsec. (k). Pub. L. 105–206, § 3509(b), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l). Subsec. (k)(1)(B). Pub. L. 105–206, § 3509(c)(3), sub- stituted ‘‘subsection (c)(1) or (i)(3)’’ for ‘‘subsection (c)’’. Subsecs. (l), (m). Pub. L. 105–206, § 3509(b), redesig- nated subsecs. (k) and (l) as (l) and (m), respectively. 1984—Subsec. (f)(5). Pub. L. 98–620 struck out provi- sion that the Court of Appeals had to expedite any re- view of such decision in every way possible. 1982—Subsec. (i)(1). Pub. L. 97–164 substituted ‘‘United States Claims Court’’ for ‘‘Court of Claims’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2007 AMENDMENT Pub. L. 110–172, § 10(b), Dec. 29, 2007, 121 Stat. 2484, pro- vided that: ‘‘The amendment made by this section [amending this section] shall take effect as if included in the provision of the Internal Revenue Service Re- structuring and Reform Act of 1998 [Pub. L. 105–206] to which it relates.’’ EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106–554, § 1(a)(7) [title III, § 304(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–634, provided that: ‘‘The amendments made by this section [enacting section 6105 of this title and amending this section and section 6103 of this title] shall take effect on the date of the en- actment of this Act [Dec. 21, 2000].’’ Amendment by section 1(a)(7) [title III, § 313(e)] of Pub. L. 106–554 effective as if included in the provisions of the Internal Revenue Service Restructuring and Re- form Act of 1998, Pub. L. 105–206, to which such amend- ment relates, see section 1(a)(7) [title III, § 313(f)] of Pub. L. 106–554, set out as a note under section 6015 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–206, title III, § 3509(d), July 22, 1998, 112 Stat. 774, provided that: ‘‘(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section] shall apply to any Chief Coun- sel advice issued more than 90 days after the date of the enactment of this Act [July 22, 1998]. ‘‘(2) TRANSITION RULES.—The amendments made by this section shall apply to any Chief Counsel advice issued after December 31, 1985, and before the 91st day after the date of the enactment of this Act [July 22, 1998] by the offices of the associate chief counsel for do- mestic, employee benefits and exempt organizations, and international, except that any such Chief Counsel advice shall be treated as made available on a timely basis if such advice is made available for public inspec- tion not later than the following dates: ‘‘(A) One year after the date of the enactment of this Act [July 22, 1998], in the case of all litigation guideline memoranda, service center advice, tax liti- gation bulletins, criminal tax bulletins, and general litigation bulletins. ‘‘(B) Eighteen months after such date of enactment, in the case of field service advice and technical as- sistance to the field issued on or after January 1, 1994. ‘‘(C) Three years after such date of enactment, in the case of field service advice and technical assist- ance to the field issued on or after January 1, 1992, and before January 1, 1994. ‘‘(D) Six years after such date of enactment, in the case of any other Chief Counsel advice issued after December 31, 1985. ‘‘(3) DOCUMENTS TREATED AS CHIEF COUNSEL ADVICE.— If the Secretary of the Treasury by regulation provides pursuant to section 6110(i)(2) of the Internal Revenue Code of 1986, as added by this section, that any addi- tional advice or instruction issued by the Office of Chief Counsel shall be treated as Chief Counsel advice, such additional advice or instruction shall be made available for public inspection pursuant to section 6110 of such Code, as amended by this section, only in ac- cordance with the effective date set forth in such regu- lation. ‘‘(4) CHIEF COUNSEL ADVICE TO BE AVAILABLE ELEC- TRONICALLY.—The Internal Revenue Service shall make any Chief Counsel advice issued more than 90 days after the date of the enactment of this Act [July 22, 1998] and made available for public inspection pursuant to sec- tion 6110 of such Code, as amended by this section, also available by computer telecommunications within 1 year after issuance.’’ EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–620 not applicable to cases pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620, set out as an Effective Date note under section 1657 of Title 28, Judiciary and Judicial Procedure. EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–164 effective Oct. 1, 1982, see section 402 of Pub. L. 97–164, set out as a note under section 171 of Title 28, Judiciary and Judicial Proce- dure. EFFECTIVE DATE Pub. L. 94–455, title XII, § 1201(e), Oct. 4, 1976, 90 Stat. 1667, provided that: ‘‘Except as otherwise provided in this section [enacting this section and provisions set out below], the amendments made by this section shall take effect on November 1, 1976.’’ PENDING REQUESTS Pub. L. 94–455, title XII, § 1201(b), Oct. 4, 1976, 90 Stat. 1667, provided that: ‘‘Any written determination or background file document which is the subject of a ju- dicial proceeding pursuant to section 552 of title 5, United States Code, commenced before January 1, 1976, shall not be treated as a written determination subject to subsection (h)(1) [subsec. (h)(1) of this section], but shall be available to the complainant along with the background file document, if requested, as soon as practicable after July 1, 1976.’’ § 6111. Disclosure of reportable transactions (a) In general Each material advisor with respect to any re- portable transaction shall make a return (in such form as the Secretary may prescribe) set- ting forth— (1) information identifying and describing the transaction, (2) information describing any potential tax benefits expected to result from the trans- action, and (3) such other information as the Secretary may prescribe. Page 3493 TITLE 26—INTERNAL REVENUE CODE § 6111 Such return shall be filed not later than the date specified by the Secretary. (b) Definitions For purposes of this section: (1) Material advisor (A) In general The term ‘‘material advisor’’ means any person— (i) who provides any material aid, assist- ance, or advice with respect to organizing, managing, promoting, selling, imple- menting, insuring, or carrying out any re- portable transaction, and (ii) who directly or indirectly derives gross income in excess of the threshold amount (or such other amount as may be prescribed by the Secretary) for such aid, assistance, or advice. (B) Threshold amount For purposes of subparagraph (A), the threshold amount is— (i) $50,000 in the case of a reportable transaction substantially all of the tax benefits from which are provided to nat- ural persons, and (ii) $250,000 in any other case. (2) Reportable transaction The term ‘‘reportable transaction’’ has the meaning given to such term by section 6707A(c). (c) Regulations The Secretary may prescribe regulations which provide— (1) that only 1 person shall be required to meet the requirements of subsection (a) in cases in which 2 or more persons would other- wise be required to meet such requirements, (2) exemptions from the requirements of this section, and (3) such rules as may be necessary or appro- priate to carry out the purposes of this sec- tion. (Added Pub. L. 98–369, div. A, title I, § 141(a), July 18, 1984, 98 Stat. 677; amended Pub. L. 99–514, title II, § 201(d)(13), title XV, § 1531(a), title XVIII, § 1899A(54), Oct. 22, 1986, 100 Stat. 2142, 2749, 2961; Pub. L. 105–34, title X, § 1028(a), Aug. 5, 1997, 111 Stat. 926; Pub. L. 108–357, title VIII, § 815(a), Oct. 22, 2004, 118 Stat. 1581; Pub. L. 109–135, title IV, § 412(zz), Dec. 21, 2005, 119 Stat. 2641.) Editorial Notes PRIOR PROVISIONS A prior section 6111 was renumbered 6116 of this title. AMENDMENTS 2005—Subsec. (b)(1)(A)(ii). Pub. L. 109–135 substituted ‘‘aid, assistance, or advice’’ for ‘‘advice or assistance’’. 2004—Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to dis- closure of reportable transactions for provisions relat- ing to registration of tax shelters and inclusion of iden- tification numbers on returns. 1997—Subsecs. (d) to (f). Pub. L. 105–34 added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. 1986—Subsec. (c)(2)(A). Pub. L. 99–514, § 1531(a), sub- stituted ‘‘350 percent’’ for ‘‘200 percent’’. Subsec. (c)(3)(B)(ii). Pub. L. 99–514, § 201(d)(13), sub- stituted ‘‘section 465(b)(3)(C)’’ for ‘‘section 168(e)(4)’’. Subsec. (d)(1)(B). Pub. L. 99–514, § 1899A(54), sub- stituted ‘‘subparagraph’’ for ‘‘subpargraph’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–357, title VIII, § 815(c), Oct. 22, 2004, 118 Stat. 1583, provided that: ‘‘The amendments made by this section [amending this section and sections 6112 and 6708 of this title] shall apply to transactions with respect to which material aid, assistance, or advice re- ferred to in section 6111(b)(1)(A)(i) of the Internal Rev- enue Code of 1986 (as added by this section) is provided after the date of the enactment of this Act [Oct. 22, 2004].’’ EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title X, § 1028(e), Aug. 5, 1997, 111 Stat. 928, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 6662 and 6707 of this title] shall apply to any tax shelter (as defined in section 6111(d) of the Internal Revenue Code of 1986, as amended by this section) interests in which are offered to potential par- ticipants after the Secretary of the Treasury prescribes guidance with respect to meeting requirements added by such amendments. ‘‘(2) MODIFICATIONS TO SUBSTANTIAL UNDERSTATEMENT PENALTY.—The amendments made by subsection (c) [amending section 6662 of this title] shall apply to items with respect to transactions entered into after the date of the enactment of this Act [Aug. 5, 1997].’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 201(d)(13) of Pub. L. 99–514 ap- plicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with excep- tions, see sections 203 and 204 of Pub. L. 99–514, set out as a note under section 168 of this title. Amendment by section 201(d)(13) of Pub. L. 99–514 not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of Pub. L. 99–514, set out as a note under section 46 of this title. Pub. L. 99–514, title XV, § 1531(b), Oct. 22, 1986, 100 Stat. 2749, provided that: ‘‘The amendment made by this section [amending this section] shall apply to any tax shelter (within the meaning of section 6111 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] as amended by this section) interests in which are first of- fered for sale after December 31, 1986.’’ EFFECTIVE DATE Pub. L. 98–369, div. A, title I, § 141(d), July 18, 1984, 98 Stat. 680, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [enacting this section and section 6707 of this title and renumbering former section 6111 as section 6112 of this title] shall apply to any tax shelter (within the meaning of section 6111 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as added by this section) any interest in which is first sold to any investor after Au- gust 31, 1984. ‘‘(2) SUBSTANTIAL INVESTMENT TEST.—For purposes of determining whether any investment is a tax shelter by reason of section 6111(c)(1)(B)(iii) of such Code (as added by this section), only offers for sale after August 31, 1984, shall be taken into account. ‘‘(3) FURNISHING OF SHELTER IDENTIFICATION NUMBER FOR INTERESTS SOLD BEFORE SEPTEMBER 1, 1984.—With re- spect to interests sold before September 1, 1984, any li- Page 3494 TITLE 26—INTERNAL REVENUE CODE § 6112 ability to act under paragraph (1) of section 6111(b) of such Code (as added by this section) which would (but for this sentence) arise before such date shall be deemed to arise on December 31, 1984.’’ § 6112. Material advisors of reportable trans- actions must keep lists of advisees, etc. (a) In general Each material advisor (as defined in section 6111) with respect to any reportable transaction (as defined in section 6707A(c)) shall (whether or not required to file a return under section 6111 with respect to such transaction) maintain (in such manner as the Secretary may by regula- tions prescribe) a list— (1) identifying each person with respect to whom such advisor acted as a material advisor with respect to such transaction, and (2) containing such other information as the Secretary may by regulations require. (b) Special rules (1) Availability for inspection; retention of in- formation on list Any person who is required to maintain a list under subsection (a) (or was required to maintain a list under subsection (a) as in ef- fect before the enactment of the American Jobs Creation Act of 2004)— (A) shall make such list available to the Secretary for inspection upon written re- quest by the Secretary, and (B) except as otherwise provided under reg- ulations prescribed by the Secretary, shall retain any information which is required to be included on such list for 7 years. (2) Lists which would be required to be main- tained by 2 or more persons The Secretary may prescribe regulations which provide that, in cases in which 2 or more persons are required under subsection (a) to maintain the same list (or portion thereof), only 1 person shall be required to maintain such list (or portion). (Added Pub. L. 98–369, div. A, title I, § 142(a), July 18, 1984, 98 Stat. 681; amended Pub. L. 108–357, title VIII, § 815(b)(2), (3), Oct. 22, 2004, 118 Stat. 1582; Pub. L. 109–135, title IV, § 403(z), Dec. 21, 2005, 119 Stat. 2629.) Editorial Notes REFERENCES IN TEXT Enactment of the American Jobs Creation Act of 2004, referred to in subsec. (b)(1), means enactment of Pub. L. 108–357, which was approved Oct. 22, 2004. PRIOR PROVISIONS A prior section 6112 was renumbered 6116 of this title. AMENDMENTS 2005—Subsec. (b)(1). Pub. L. 109–135, in introductory provisions, inserted ‘‘(or was required to maintain a list under subsection (a) as in effect before the enact- ment of the American Jobs Creation Act of 2004)’’ after ‘‘a list under subsection (a)’’. 2004—Pub. L. 108–357, § 815(b)(2), substituted ‘‘Material advisors of reportable transactions must keep lists of advisees, etc.’’ for ‘‘Organizers and sellers of poten- tially abusive tax shelters must keep lists of investors’’ in section catchline. Subsec. (a). Pub. L. 108–357, § 815(b)(2), reenacted head- ing without change and amended text of subsec. (a) generally, substituting provisions requiring each mate- rial advisor to maintain a list identifying each person with respect to whom such advisor acted as a material advisor with respect to a reportable transaction and containing such other information as required by regu- lations, for provisions requiring any person who orga- nized any potentially abusive tax shelter or sold any interest in such a shelter to maintain a list identifying each person who had been sold an interest in such shel- ter and containing such other information as required by regulations. Subsec. (b). Pub. L. 108–357, § 815(b)(2), (3)(A), redesig- nated subsec. (c) as (b) and struck out former subsec. (b), which defined ‘‘potentially abusive tax shelter’’ for purposes of this section. Subsec. (b)(1)(A). Pub. L. 108–357, § 815(b)(3)(B), in- serted ‘‘written’’ before ‘‘request’’. Subsec. (b)(2). Pub. L. 108–357, § 815(b)(3)(C), sub- stituted ‘‘may prescribe’’ for ‘‘shall prescribe’’. Subsec. (c). Pub. L. 108–357, § 815(b)(3)(A), redesignated subsec. (c) as (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 403(nn) of Pub. L. 109–135, set out as a note under section 26 of this title. EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–357 applicable to trans- actions with respect to which material aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of this title is provided after Oct. 22, 2004, see section 815(c) of Pub. L. 108–357, set out as a note under section 6111 of this title. EFFECTIVE DATE Pub. L. 98–369, div. A, title I, § 142(d), July 18, 1984, 98 Stat. 682, provided that: ‘‘The amendments made by this section [enacting this section and section 6708 of this title and renumbering former section 6112 as sec- tion 6113 of this title] shall apply to any interest which is first sold to any investor after August 31, 1984.’’ § 6113. Disclosure of nondeductibility of con- tributions (a) General rule Each fundraising solicitation by (or on behalf of) an organization to which this section applies shall contain an express statement (in a con- spicuous and easily recognizable format) that contributions or gifts to such organization are not deductible as charitable contributions for Federal income tax purposes. (b) Organizations to which section applies (1) In general Except as otherwise provided in this sub- section, this section shall apply to any organi- zation which is not described in section 170(c) and which— (A) is described in subsection (c) (other than paragraph (1) thereof) or (d) of section 501 and exempt from taxation under section 501(a), (B) is a political organization (as defined in section 527(e)), or (C) was an organization described in sub- paragraph (A) or (B) at any time during the 5-year period ending on the date of the fund-