Each material advisor with respect to any reportable transaction shall make a return (in such form as the Secretary may prescribe) setting forth—
(1)
information identifying and describing the transaction,
(2)
information describing any potential tax benefits expected to result from the transaction, and
(3)
such other information as the Secretary may prescribe.
Such return shall be filed not later than the date specified by the Secretary.
(b)
Definitions
For purposes of this section:
(1)
Material advisor
(A)
In general
The term “material advisor” means any person—
(i)
who provides any material aid, assistance, or advice with respect to organizing, managing, promoting, selling, implementing, insuring, or carrying out any reportable transaction, and
(ii)
who directly or indirectly derives gross income in excess of the threshold amount (or such other amount as may be prescribed by the Secretary) for such aid, assistance, or advice.
(B)
Threshold amount
For purposes of subparagraph (A), the threshold amount is—
(i)
$50,000 in the case of a reportable transaction substantially all of the tax benefits from which are provided to natural persons, and
(ii)
$250,000 in any other case.
(2)
Reportable transaction
The term “reportable transaction” has the meaning given to such term by section 6707A(c).
(c)
Regulations
The Secretary may prescribe regulations which provide—
(1)
that only 1 person shall be required to meet the requirements of subsection (a) in cases in which 2 or more persons would otherwise be required to meet such requirements,
(2)
exemptions from the requirements of this section, and
(3)
such rules as may be necessary or appropriate to carry out the purposes of this section.
A prior section 6111 was renumbered 6116 of this title.
Amendments
Pub. L. 109–1352005—Subsec. (b)(1)(A)(ii). substituted “aid, assistance, or advice” for “advice or assistance”.
Pub. L. 108–3572004— amended section catchline and text generally, substituting provisions relating to disclosure of reportable transactions for provisions relating to registration of tax shelters and inclusion of identification numbers on returns.
Pub. L. 105–341997—Subsecs. (d) to (f). added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively.
“The amendments made by this section [amending this section and sections 6112 and 6708 of this title] shall apply to transactions with respect to which material aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of the Internal Revenue Code of 1986 (as added by this section) is provided after the date of the enactment of this Act [].”
Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 6662 and 6707 of this title] shall apply to any tax shelter (as defined in section 6111(d) of the Internal Revenue Code of 1986, as amended by this section) interests in which are offered to potential participants after the Secretary of the Treasury prescribes guidance with respect to meeting requirements added by such amendments.
“(2)
Modifications to substantial understatement penalty .—
section 6662 of this titleThe amendments made by subsection (c) [amending ] shall apply to items with respect to transactions entered into after the date of the enactment of this Act [].”
section 201(d)(13) of Pub. L. 99–514Pub. L. 99–514section 46 of this titleAmendment by not applicable to any property placed in service before , if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of , set out as a note under .
“The amendment made by this section [amending this section] shall apply to any tax shelter (within the meaning of section 6111 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] as amended by this section) interests in which are first offered for sale after .”
section 6707 of this titlesection 6112 of this titleThe amendments made by this section [enacting this section and and renumbering former section 6111 as ] shall apply to any tax shelter (within the meaning of section 6111 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as added by this section) any interest in which is first sold to any investor after .
“(2)
Substantial investment test .—
For purposes of determining whether any investment is a tax shelter by reason of section 6111(c)(1)(B)(iii) of such Code (as added by this section), only offers for sale after , shall be taken into account.
“(3)
Furnishing of shelter identification number for interests sold before .—
With respect to interests sold before , any liability to act under paragraph (1) of section 6111(b) of such Code (as added by this section) which would (but for this sentence) arise before such date shall be deemed to arise on .”