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Eligible Transactions

Fact Sheet Attachment
Settlement Initiative

Eligible Transactions

Group 1: Listed Transactions (Penalty = ½ of the Maximum)

  • Notice 2002-21, 2002-1 C.B. 730, Tax Avoidance Using Inflated Basis (20%);
  • Notice 2001-16, 2001-1 C.B. 730, Intermediary Transactions (20%);
  • Notice 2003-55, 2003-2 C.B. 395, Lease Strips (10% except  20% for Transactions involving Losses Reported from Inflated Basis);
  • Notice 2003-81, 2003-2 C.B. 1223, Tax Avoidance Using Offsetting Foreign Currency Contracts (10%); and
  • Notice 2003-54, 2003-2 C.B. 363, Common Trust Fund Straddle Tax Shelter (10%); and
  • Notice 99-59, 1999-2 C.B. 761, Distributions of Encumbered Property (10%).

Group 2:  Listed Transactions (Penalty = ¼ of the Maximum)

  • Rev. Rul. 2004-20, 2004-1 C.B. 546, Situation 2 (5%) (and including the non-listed Situation 1 and Rev. Rul. 2004-21, 2004-1 C.B. 544);
  • Rev. Rul. 2004-4, 2004-1 C.B. 414, ESOP-owned S corporation (5%);
  • Notice 2004-8, 2004-1 C.B. 333, Abusive Roth IRA Transactions (5%);
  • Notice 2003-77, 2003-2 C.B. 1182, Contested Liabilities (5%);
  • Notice 2003-24, 2003-1 C.B. 853, Welfare Benefit Funds under § 419A(f)(5) (5%);
  • Rev. Rul. 2003-6, 2003-1 C.B. 286, ESOPs holding stock in an S corporation (5%);
  • Notice 2000-60, 2000-2 C.B. 568, Stock Compensation (5%); 
  • Rev. Rul. 2000-12, 2000-1 C.B. 744, Debt Straddles (5%);
  • Treas. Reg. § 1.643(a)-8, Distributions by Charitable Remainder Trusts (5%); and
  • Notice 95-34, 1995-1 C.B. 309, Certain Trust Arrangements Seeking Exemption from Section § 419 (5%).

Group 3:  Other Transactions (Penalty = ¼ of the Maximum)

  • Certain Abusive Conservation Easements (see Notice 2004-41, 2004-28 I.R.B. 31) (5%);
  • Certain Abusive Donations of Patents and Other Intellectual Property (see Notice 2004-7, 2004-1 C.B. 310) (5%);
  • Rev. Rul. 2004-98, 2004-42 I.R.B. 664, Reimbursements for Employee Parking (5%);
  • Rev. Rul. 2002-3, 2002-1 C.B. 316; Rev. Rul. 2002-80, 2002-2 C.B. 925, Reimbursements of employees’ medical expenses (5%); and
  • Management S Corporation/ESOP Transactions (5%).

Related Links:

  • FS-2005-17, IRS Settlement Initiative
  • IR-2005-129, IRS Launches Abusive Transaction Settlement Initiative

     

      
Page Last Reviewed or Updated: 25-Apr-2013