Abusive Tax Shelter Mandatory Information Document Request (IDR)
November 16, 2006
MEMORANDUM FOR LARGE AND MID-SIZE DIVISION, MANAGERS, AND INTERNAL REVENUE AGENTS
FROM: Deborah M. Nolan /s/ Deborah M. Nolan
Commissioner, Large and Mid-Size Business Division
SUBJECT: Abusive Tax Shelter Mandatory Information
Document Request (IDR)
This memorandum reemphasizes the LMSB policy on the Abusive Tax Shelter Mandatory Information Document Request (IDR) and our continuing commitment to the Service-wide initiative addressing abusive tax shelters. It supersedes all previously issued memoranda on the IDR.
The mandatory IDR is required for all LMSB returns. LMSB examinations encompass all types of returns, whether in the context of Coordinated Industry Cases (CIC), or Industry Cases (IC), including: Forms 1120, 1120S, 1120F, 1065, 1040, 1041, etc. This policy extends to examination activities that originate from Pre-Filing Compliance Initiatives, such as the Compliance Assurance Process (CAP).
The mandatory IDR must be issued at the start of all LMSB examinations and again whenever any new transaction becomes a listed transaction. To the extent additional years or related returns (including Forms 1040) are subsequently opened for examination, an up-to-date IDR must be issued. There are no exceptions to this policy, and rare modifications to the IDR may be made only under the guidance of the Office of Tax Shelter Analysis (OTSA).
Attachment to Form 4564 - Mandatory Tax Shelter IDR (10-17-2007)
If you have any questions, please contact Cliff Scherwinski , Manager, Office of Tax Shelter Analysis, at (202) 283-8387 or Brian J. DeSousa, IRA, Senior Program Analyst, at (202) 283-8589.