Son of Boss Settlement Initiative FAQs - Section 4(a), Required Procedures for Electing Participants: Notice of Election

Q-4a.1. How do I make the notice of election? What formats are acceptable and what is required?

A-4a.1. A Notice of Election — Form 13582 (PDF 103K) — has been created for this announcement and is available on this site. In addition, revenue agents will have copies of this form. The forms must contain original signatures and must be sent via certified mail or designated delivery service (within the meaning of §7502(f)) to both the examining agent (if you are currently under examination or any TEFRA partnership in which you are (or were) a partner is under examination) and to the address listed in the announcement. If you are not currently under examination, you must send it only to the address listed in the announcement. The Notice of Election must be complete (as required by Announcement 2004-46) and submitted on or before June 21, 2004. Incomplete forms will be rejected and must be re-submitted on or before June 21, 2004, to be considered. The Notice of Election is required to be signed under penalties of perjury.

Q-4a.2. Does the power of attorney for a partner in a TEFRA partnership need any special language?

A-4a.2. Yes, in the case of taxpayers that invested through a TEFRA partnership. In order for the power of attorney to qualify under Section 6223, the following language must be included under number 3 or number 5 of Form 2848:

The acts authorized by this power of attorney include representation for the purposes of Subchapter C of Chapter 63 of the Internal Revenue Code.”

Q-4a.3. If a taxpayer claims eligibility for the zero percent penalty because the taxpayer disclosed the Son of Boss transaction under Announcement 2002-2, must the taxpayer identify on the Notice of Election (Form 13582) all other listed transactions he engaged in?

A-4a.3. Yes. See Section 4(a)(5) and Form 13582, Section IV.

Q-4a.4. If a taxpayer participated in a Son of Boss transaction through a grantor trust, does the taxpayer need to file two Notices of Election?

A-4a.4. No, the taxpayer need only file one Notice of Election for the transaction.

Back to FAQ section list