Regulations on Abusive Tax Shelters and Transactions


AJCA Modifications to Disclosure of Reportable Transactions and List Maintenance Requirements

Reportable Transaction Disclosure Statements

Material Advisor Disclosure Statements

Penalties Associated with Reportable Transactions

  • § 301.6700 Promoting Abusive Tax Shelters The penalty is for a promoter of an abusive tax shelter and is generally equal to $1,000 for each organization or sale of an abusive plan or arrangement (or, if lesser, 100 percent of the income derived from the activity).
  • § 301.6701 Penalties for aiding and abetting understatement of tax liability The penalty is $1000 ($10,000 if the conduct relates to a corporation’s tax return) for aiding and abetting in an understatement of a tax liability.  Any person subject to the penalty shall be penalized only once for documents relating to the same taxpayer for a single tax period or event.
  • § 301.6707 Material Advisor Penalty for Failure to Furnish Information Regarding Reportable Transactions
  • § 301.6707A Failure to include on any return or statement any information required to be disclosed under section 6011 with respect to a reportable transaction.
  • § 301.6708 Failure to Maintain List of Advisees With Respect to Reportable Transactions
  • § 301.6662A Imposition of accuracy-related penalty on understatements with respect to reportable transactions