Transactions that are RTs, but not RATs, remain subject to a 20-percent accuracy-related penalty under the rules of section 6662.
Taxing authorities, courts, the AICPA, and other professional organizations have struggled with defining and regulating tax shelters and abusive,
transactions. Crucial to the debate is the difficulty of clearly distinguishing between
transactions that are abusive and
transactions that are legitimate.
There currently are five categories of reportable
transactions that must be disclosed, including listed
transactions and
transactions of interest--the newest category added by final regulations (TD 9350) issued on August 3, 2007 (revised final regulations).
The Department of Labor issued an updated version of its Voluntary Fiduciary Correction Program in April, adding
transactions that can be corrected under the program and expanding the ability to obtain relief from prohibited
transactions.
Massey Knakal announced the following
transactions:
It's not the first time the complicated
transactions have fallen under regulatory scrutiny, nor the first time the
transactions have been renamed.
During the past five years, the Internal Revenue Service has taken steps to combat abusive tax shelters and
transactions. The IRS seeks to put a comprehensive strategy in place to (1) identify and deter promoters of abusive tax
transactions; (2) publish guidance on
transactions and shelters that are determined to be abusive; and (3) promote disclosure by those who market and participate in abusive
transactions.
Decisions on incoterms, without the involvement of the
transaction tax specialist, could be a financial risk, and failure to use incoterms to help structure tax-efficient international
transactions could be an opportunity missed.
Workpapers supporting this evaluation often contain sensitive information about contingent or potential liability for
transactions whose tax treatment may not be self-evident.
While electronic commerce offers speed, convenience, and cost advantages over traditional paper-based
transactions, it raises many business and legal issues.
Conventional techniques to perform a point in time recovery will remove the effects of all
transactions since that specified point in time.