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Title 26 — Internal Revenue CodeRelease 119-73

§6112 Material advisors of reportable transactions must keep lists of advisees, etc.

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 61— - INFORMATION AND RETURNS › Subchapter Subchapter B— - Miscellaneous Provisions › § 6112

Last updated Apr 6, 2026|Official source

Summary

Material advisors who give advice about certain tax transactions must keep a list that names each person they advised about those reportable transactions and any other facts the IRS requires. A material advisor is someone who helps with certain reportable tax deals. A reportable transaction is a tax transaction the IRS says must be reported. The IRS can make rules about how the list is kept and what goes on it. Anyone who must keep such a list (including people who had to keep one under the rules before the American Jobs Creation Act of 2004), must let the IRS inspect the list if the IRS asks in writing and must keep the required information for 7 years unless the IRS’s rules say otherwise. The IRS can also say that if several people would keep the same list, only one of them has to keep it.

Full Legal Text

Title 26, §6112

Internal Revenue Code — Source: USLM XML via OLRC

(a)Each material advisor (as defined in section 6111) with respect to any reportable transaction (as defined in section 6707A(c)) shall (whether or not required to file a return under section 6111 with respect to such transaction) maintain (in such manner as the Secretary may by regulations prescribe) a list—
(1)identifying each person with respect to whom such advisor acted as a material advisor with respect to such transaction, and
(2)containing such other information as the Secretary may by regulations require.
(b)(1)Any person who is required to maintain a list under subsection (a) (or was required to maintain a list under subsection (a) as in effect before the enactment of the American Jobs Creation Act of 2004)—
(A)shall make such list available to the Secretary for inspection upon written request by the Secretary, and
(B)except as otherwise provided under regulations prescribed by the Secretary, shall retain any information which is required to be included on such list for 7 years.
(2)The Secretary may prescribe regulations which provide that, in cases in which 2 or more persons are required under subsection (a) to maintain the same list (or portion thereof), only 1 person shall be required to maintain such list (or portion).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Enactment of the American Jobs Creation Act of 2004, referred to in subsec. (b)(1), means enactment of Pub. L. 108–357, which was approved Oct. 22, 2004.

Prior Provisions

A prior section 6112 was renumbered 6116 of this title.

Amendments

2005—Subsec. (b)(1). Pub. L. 109–135, in introductory provisions, inserted “(or was required to maintain a list under subsection (a) as in effect before the enactment of the American Jobs Creation Act of 2004)” after “a list under subsection (a)”. 2004—Pub. L. 108–357, § 815(b)(2), substituted “Material advisors of reportable transactions must keep lists of advisees, etc.” for “Organizers and sellers of potentially abusive tax shelters must keep lists of investors” in section catchline. Subsec. (a). Pub. L. 108–357, § 815(b)(2), reenacted heading without change and amended text of subsec. (a) generally, substituting provisions requiring each material advisor to maintain a list identifying each person with respect to whom such advisor acted as a material advisor with respect to a reportable transaction and containing such other information as required by

Regulations

, for provisions requiring any person who organized any potentially abusive tax shelter or sold any interest in such a shelter to maintain a list identifying each person who had been sold an interest in such shelter and containing such other information as required by

Regulations

. Subsec. (b). Pub. L. 108–357, § 815(b)(2), (3)(A), redesignated subsec. (c) as (b) and struck out former subsec. (b), which defined “potentially abusive tax shelter” for purposes of this section. Subsec. (b)(1)(A). Pub. L. 108–357, § 815(b)(3)(B), inserted “written” before “request”. Subsec. (b)(2). Pub. L. 108–357, § 815(b)(3)(C), substituted “may prescribe” for “shall prescribe”. Subsec. (c). Pub. L. 108–357, § 815(b)(3)(A), redesignated subsec. (c) as (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 2005 AmendmentAmendment by Pub. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 403(nn) of Pub. L. 109–135, set out as a note under section 26 of this title.

Effective Date

of 2004 AmendmentAmendment by Pub. L. 108–357 applicable to transactions with respect to which material aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of this title is provided after Oct. 22, 2004, see section 815(c) of Pub. L. 108–357, set out as a note under section 6111 of this title.

Effective Date

Pub. L. 98–369, div. A, title I, § 142(d), July 18, 1984, 98 Stat. 682, provided that: “The

Amendments

made by this section [enacting this section and section 6708 of this title and renumbering former section 6112 as section 6113 of this title] shall apply to any interest which is first sold to any investor after August 31, 1984.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 6112

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73