§6111 — Title 26 Internal Revenue Code | U.S. Code

Summary

People who serve as material advisors for certain tax-related deals must file a report with the Treasury in the form the Treasury requires. The report must identify and describe the deal, explain the tax benefits expected from it, and include any other information the Treasury asks for. A material advisor is someone who gives important help, advice, or services to set up, run, market, sell, insure, or carry out the deal and who gets more than a set amount of gross income for that work. The income cutoff is $50,000 when most tax benefits go to natural persons, and $250,000 in other cases. The Treasury can make rules about when only one person must file, create exemptions, and issue other needed rules.

Title 26, §6111

Internal Revenue Code — Source: USLM XML via OLRC

(a)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.

(b)For purposes of this section:

(1)(A)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)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)The term “reportable transaction” has the meaning given to such term by section 6707A(c).

(c)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.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 6111 was renumbered 6116 of this title.

Amendments

2005—Subsec. (b)(1)(A)(ii). Pub. L. 109–135 substituted “aid, assistance, or advice” for “advice or assistance”. 2004—Pub. L. 108–357 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. 1997—Subsecs. (d) to (f). Pub. L. 105–34 added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. 1986—Subsec. (c)(2)(A). Pub. L. 99–514, § 1531(a), substituted “350 percent” for “200 percent”. Subsec. (c)(3)(B)(ii). Pub. L. 99–514, § 201(d)(13), substituted “section 465(b)(3)(C)” for “section 168(e)(4)”. Subsec. (d)(1)(B). Pub. L. 99–514, § 1899A(54), substituted “subparagraph” for “subpargraph”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2004 Amendment Pub. L. 108–357, title VIII, § 815(c), Oct. 22, 2004, 118 Stat. 1583, provided that: “The

Amendments

made by this section [amending this section and section 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 [Oct. 22, 2004].”

Effective Date

of 1997 Amendment Pub. L. 105–34, title X, § 1028(e), Aug. 5, 1997, 111 Stat. 928, provided that: “(1) In general.—Except as provided in paragraph (2), the

Amendments

made by this section [amending this section and section 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.—The

Amendments

made by subsection (c) [amending section 6662 of this title] shall apply to items with respect to transactions entered into after the date of the enactment of this Act [Aug. 5, 1997].”

Effective Date

of 1986 AmendmentAmendment by section 201(d)(13) of Pub. L. 99–514 applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see section 203 and 204 of Pub. L. 99–514, set out as a note under section 168 of this title. Amendment by section 201(d)(13) of Pub. L. 99–514 not applicable to any property placed in service before Jan. 1, 1994, 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 Pub. L. 99–514, set out as a note under section 46 of this title. Pub. L. 99–514, title XV, § 1531(b), Oct. 22, 1986, 100 Stat. 2749, provided that: “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 December 31, 1986.”

Effective Date

Pub. L. 98–369, div. A, title I, § 141(d), July 18, 1984, 98 Stat. 680, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(1) In general.—The

Amendments

made by this section [enacting this section and section 6707 of this title and renumbering former section 6111 as section 6112 of this title] 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

August 31, 1984. “(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

August 31, 1984, shall be taken into account. “(3) Furnishing of shelter identification number for interests sold before september 1, 1984.—With respect to interests sold before

September 1, 1984, 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

December 31, 1984.”

§6111 Disclosure of reportable transactions

Summary

Title 26, §6111

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