Generation-Skipping Transfers (GST) Section 6011 Regulations and Amendments to the Section 6112 Regulations, 70340-70342 [2011-29313]
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70340
Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
Supplement No. 4 to Part 748
[Amended]
10. Amend Supplement No. 4 to Part
748 by removing the entire entry for
‘‘Liechtenstein’’.
■
Dated: November 7, 2011.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2011–29357 Filed 11–10–11; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 26 and 301
[TD 9556]
RIN 1545–BG89
Generation-Skipping Transfers (GST)
Section 6011 Regulations and
Amendments to the Section 6112
Regulations
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations that provide rules relating to
the disclosure of listed transactions and
transactions of interest with respect to
the generation-skipping transfer tax
under section 6011 of the Internal
Revenue Code (Code), conforming
amendments under sections 6111 and
6112, and rules relating to the
preparation and maintenance of lists
with respect to reportable transactions
under section 6112. The regulations
affect taxpayers participating in listed
transactions and transactions of interest
and material advisors to such
transactions. The final regulations also
contain rules under section 6112 that
affect material advisors to reportable
transactions. These regulations provide
guidance regarding the length of time a
material advisor has to prepare the list
that must be maintained after the list
maintenance requirement first arises
with respect to a reportable transaction.
These regulations also clarify guidance
regarding designation agreements.
DATES: These regulations are effective
November 14, 2011.
FOR FURTHER INFORMATION CONTACT:
Charles D. Wien, (202) 622–3070 (not a
toll-free number).
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
Background
This document contains final
regulations that amend 26 CFR part 26
to provide rules for purposes of the
generation-skipping transfer tax that
require the disclosure of listed
VerDate Mar<15>2010
16:08 Nov 10, 2011
Jkt 226001
transactions and transactions of interest
by certain taxpayers on their Federal tax
returns under section 6011. This
document also contains final regulations
that modify and clarify some of the rules
under 26 CFR part 301 relating to the
disclosure obligations of material
advisors under section 6111 and the list
maintenance requirements of material
advisors with respect to reportable
transactions under section 6112.
On July 31, 2007, the IRS and
Treasury Department issued final
regulations under section 6011 (TD
9350; 72 FR 43146), 6111 (TD 9351; 72
FR 43157) and 6112 (TD 9352; 72 FR
43154) (the July 2007 regulations) that
were published in the Federal Register
on August 3, 2007. In the July 2007
regulations, the IRS and Treasury
Department amended 26 CFR parts 20,
25, 31, 53, 54, and 56 to provide that
certain taxpayers would be required to
disclose transactions of interest, in
addition to listed transactions, on their
Federal tax returns under section 6011.
On September 10, 2009, the IRS and
Treasury Department issued a notice of
proposed rulemaking under sections
6011, 6111, and 6112 (REG–136563–07)
(the September 2009 proposed
regulations). The September 2009
proposed regulations were published in
the Federal Register (74 FR 46705) on
September 11, 2009.
In response to the September 2009
proposed regulations, the IRS and
Treasury Department received two
written public comments. A public
hearing was not requested. After
consideration of the comments received,
the IRS and Treasury Department are
adopting the proposed regulations
without change.
Explanation of Comments
Two commentators expressed concern
that if the IRS and Treasury Department
designate a transaction involving gift,
estate, or generation-skipping transfer
taxes as a listed transaction or
transaction of interest, that a corporate
fiduciary, merely by acting as an
executor or trustee with respect to an
estate or trust that is incidental to the
transaction, would be treated as a
material advisor under section 6112 and
the regulations thereunder. One of the
commentators proposed that the
September 2009 proposed regulations
and existing final regulations under
sections 6011, 6111, and 6112 be
amended to require public comment
before a transaction involving Chapters
11, 12, and 13 of the Code can be
designated as a listed transaction or
transaction of interest.
The IRS and Treasury Department
believe that in the situation described
PO 00000
Frm 00020
Fmt 4700
Sfmt 4700
by the commentators the existing
regulations under sections 6111 and
6112 properly address which parties are
material advisors, and transactions
involving gift, estate, or generationskipping transfer taxes should not be
treated differently than other
transactions. A fiduciary will not be
treated as a material advisor merely by
acting as an executor or trustee with
respect to an estate or trust that is
incidental to a transaction. A fiduciary
will be treated as a material advisor only
if the fiduciary provides material aid,
assistance or advice as described in
§ 301.6111–3(b)(2), the fiduciary
directly or indirectly derives gross
income in excess of the threshold
amount as described in § 301.6111–
3(b)(3), and the transaction is entered
into by the taxpayer.
In addition, the regulations are not
amended to require advance notice
before designating a transaction as a
transaction of interest or as a listed
transaction as suggested by a
commentator. In appropriate
circumstances, the IRS and Treasury
Department may choose to publish
advance notice of a transaction of
interest and request comments in
certain circumstances. The IRS and
Treasury Department will determine
whether to provide advance notice and
a request for comments on a transaction
by transaction basis. Accordingly, the
proposed regulations will be adopted
without change.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required. It
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations. It is hereby
certified that the collection of
information in these regulations will not
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that most of the material advisors
affected by these regulations are not
small entities and for those material
advisors that are small entities most of
the information is already required
under the current regulations. Any
additional recordkeeping burdens on
material advisors that result from this
regulation are insubstantial. Also, the
collection of information referenced in
these regulations has been approved
under OMB control number 1545–1686.
The clarification and new information
required by these final regulations add
little or no new burden to those existing
E:\FR\FM\14NOR1.SGM
14NOR1
Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
requirements. Therefore, a Regulatory
Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking preceding these
regulations was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these
regulations is Charles D. Wien, Office of
the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated
in their development.
List of Subjects
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 26 and 301
are amended as follows:
PART 26—GENERATION-SKIPPING
TRANSFER TAX REGULATIONS
UNDER THE TAX REFORM ACT OF
1986
Paragraph 1. The authority citation
for part 26 is amended to read in part
as follows:
■
Authority: 26 U.S.C. 7805 * * *
Section 26.6011–4 also issued under 26
U.S.C. 6011 * * *
Par. 2. Section 26.6011–4 is added to
read as follows:
■
mstockstill on DSK4VPTVN1PROD with RULES
§ 26.6011–4 Requirement of statement
disclosing participation in certain
transactions by taxpayers.
(a) In general. If a transaction is
identified as a listed transaction or a
transaction of interest as defined in
§ 1.6011–4 of this chapter by the
Commissioner in published guidance,
and the listed transaction or transaction
of interest involves a tax on generationskipping transfers under chapter 13 of
subtitle B of the Internal Revenue Code,
the transaction must be disclosed in the
manner stated in such published
guidance.
(b) Effective/applicability date. This
section applies to listed transactions
and transactions of interest entered into
on or after November 14, 2011.
16:08 Nov 10, 2011
Jkt 226001
Par. 3. The authority citation for part
301 continues to read in part as follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 4. Section 301.6111–3 is
amended as follows:
■ a. Paragraphs (b)(2)(i)(A) and
(b)(3)(i)(B) are amended by adding the
language ‘‘26.6011–4,’’ after each
occurrence of ‘‘25.6011–4,’’.
■ b. Paragraphs (c)(2) and (c)(13) are
amended by adding the language
‘‘26.6011–4,’’ after ‘‘25.6011–4,’’.
■ c. Paragraph (i)(1) is revised.
The revision reads as follows:
■
§ 301.6111–3 Disclosure of reportable
transactions.
*
26 CFR Part 26
Estate taxes, Reporting and
recordkeeping requirements.
VerDate Mar<15>2010
PART 301—PROCEDURE AND
ADMINISTRATION
*
*
*
*
(i) Effective/applicability date—(1) In
general. This section applies to
transactions with respect to which a
material advisor makes a tax statement
on or after August 3, 2007. However,
this section applies to transactions of
interest entered into on or after
November 2, 2006, with respect to
which a material advisor makes a tax
statement under this section on or after
November 2, 2006. Paragraphs
(b)(2)(i)(A), (b)(3)(i)(B), (c)(2), and (c)(13)
of this section apply to transactions
with respect to which a material advisor
makes a tax statement under this section
after November 14, 2011. Paragraph (h)
of this section applies to ruling requests
received on or after November 2, 2006.
Otherwise, the rules that apply on or
before November 14, 2011 are contained
in this section in effect prior to
November 14, 2011 (see 26 CFR part 301
revised as of April 1, 2011).
*
*
*
*
*
■ Par. 5. Section 301.6112–1 is
amended as follows:
■ 1. Paragraph (b)(1) is revised.
■ 2. Paragraphs (c)(3) and (c)(12) are
amended by adding the language
‘‘26.6011–4,’’ after ‘‘25.6011–4,’’.
■ 3. Paragraphs (f) and (g) are revised.
The revisions read as follows:
§ 301.6112–1 Material advisors of
reportable transactions must keep lists of
advisees, etc.
*
*
*
*
*
(b) * * *
(1) In general. A separate list must be
prepared and maintained for each
reportable transaction. However, one list
must be maintained for substantially
similar transactions. A material advisor
will have 30 calendar days from the date
the list maintenance requirement first
arises (see § 301.6111–3(b)(4) and
paragraph (a) of this section) with
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Fmt 4700
Sfmt 4700
70341
respect to a reportable transaction to
prepare the list that must be maintained
under this section with respect to that
transaction. The Commissioner in his
discretion also may provide in
published guidance designating a
transaction as a reportable transaction a
list preparation time period greater than
30 calendar days. If a list is requested
under this section during the list
preparation time period, the request for
the list will be treated as having been
made on the day after the list
preparation time period ends. A list
must be maintained in a form that
enables the IRS to determine without
undue delay or difficulty the
information required in paragraph (b)(3)
of this section. The Commissioner in his
discretion may provide in published
guidance a form or method for
maintaining or furnishing the list.
*
*
*
*
*
(f) Designation agreements. If more
than one material advisor is required to
maintain a list of persons for a
reportable transaction, in accordance
with paragraph (b) of this section, the
material advisors may designate by
written agreement a single material
advisor (the designated material
advisor) to maintain the list or a portion
of the list. A designation agreement does
not relieve material advisors from their
obligation to maintain a list in
accordance with paragraph (b) of this
section or to furnish their list to the IRS
in accordance with paragraph (e)(1) of
this section, but a designation
agreement may allow one material
advisor to maintain a list on behalf of
the other material advisors who are a
party to the designation agreement. A
material advisor is not relieved from the
requirement of this section because a
material advisor is unable to obtain the
list from any designated material
advisor, any designated material advisor
did not maintain a list, or the list
maintained by any designated material
advisor is not complete. The existence
of a designation agreement does not
affect the ability of the IRS to request a
list from any party to the designation
agreement. The IRS may request a list
from any party to the designation
agreement, and the party receiving the
request must furnish their list to the IRS
in accordance with paragraph (e)(1) of
this section, regardless of whether their
list was maintained by another party
pursuant to the terms of a designation
agreement.
(g) Effective/applicability date. In
general, this section applies to
transactions with respect to which a
material advisor makes a tax statement
under § 301.6111–3 on or after August 3,
E:\FR\FM\14NOR1.SGM
14NOR1
70342
Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
2007. However, this section applies to
transactions of interest entered into on
or after November 2, 2006, with respect
to which a material advisor makes a tax
statement under § 301.6111–3 on or
after November 2, 2006. Paragraphs
(b)(1), (c)(3), (c)(12), and (f) of this
section apply to transactions with
respect to which a material advisor
makes a tax statement under
§ 301.6111–3 after November 14, 2011.
Otherwise, the rules that apply on or
before November 14, 2011 are contained
in this section in effect prior to
November 14, 2011 (see 26 CFR part 301
revised as of April 1, 2011).
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: November 4, 2011.
Emily S. McMahon,
Assistant Secretary of the Treasury, Tax
Policy.
[FR Doc. 2011–29313 Filed 11–10–11; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Parts 100, 117, and 165
[USCG–2011–0874]
Quarterly Listings; Safety Zones,
Security Zones, Special Local
Regulations, Drawbridge Operation
Regulations and Regulated Navigation
Areas
Coast Guard, DHS.
Notice of expired temporary
rules issued.
AGENCY:
ACTION:
This document provides
required notice of substantive rules
issued by the Coast Guard and
temporarily effective between March
2010 and July 2011, that expired before
they could be published in the Federal
Register. This notice lists temporary
safety zones, security zones, special
local regulations, drawbridge operation
regulations and regulated navigation
areas, all of limited duration and for
SUMMARY:
which timely publication in the Federal
Register was not possible.
DATES: This document lists temporary
Coast Guard rules between March 1,
2010 and July 23, 2011 that became
effective and were terminated before
they could be published in the Federal
Register.
ADDRESSES: The Docket Management
Facility maintains the public docket for
this notice. Documents indicated in this
notice will be available for inspection or
copying at the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building ground
floor, Room W12–140, 1200 New Jersey
Avenue SE., Washington, DC 20590
between 9 a.m. and 5 p.m., Monday
through Friday, except federal holidays.
FOR FURTHER INFORMATION CONTACT: For
questions on this notice contact Yeoman
First Class Marcus Hyde, Office of
Regulations and Administrative Law,
telephone (202) 372–3862. For questions
on viewing, or on submitting material to
the docket, contact Ms. Angie Ames,
Docket Operations, telephone (202)
366–5115.
SUPPLEMENTARY INFORMATION: Coast
Guard District Commanders and
Captains of the Port (COTP) must be
immediately responsive to the safety
and security needs within their
jurisdiction; therefore, District
Commanders and COTPs have been
delegated the authority to issue certain
local regulations. Safety zones may be
established for safety or environmental
purposes. A safety zone may be
stationary and described by fixed limits
or it may be described as a zone around
a vessel in motion. Security zones limit
access to prevent injury or damage to
vessels, ports, or waterfront facilities
and may also describe a zone around a
vessel in motion. Special local
regulations are issued to enhance the
safety of participants and spectators at
regattas and other marine events.
Drawbridge operation regulations
authorize changes to drawbridge
schedules to accommodate bridge
repairs, seasonal vessel traffic, and local
public events. Regulated Navigation
Areas are water areas within a defined
boundary for which regulations for
vessels navigating within the area have
been established by the regional Coast
Guard District Commander.
Timely publication of these rules in
the Federal Register is often precluded
when a rule responds to an emergency,
or when an event occurs without
sufficient advance notice. The affected
public is, however, informed of these
rules through Local Notices to Mariners,
press releases, and other means.
Moreover, actual notification is
provided by Coast Guard patrol vessels
enforcing the restrictions imposed by
the rule. Because Federal Register
publication was not possible before the
beginning of the effective period,
mariners were personally notified of the
contents of these safety zones, security
zones, special local regulations,
regulated navigation areas or
drawbridge operation regulations by
Coast Guard officials on-scene prior to
any enforcement action. However, the
Coast Guard, by law, must publish in
the Federal Register notice of
substantive rules adopted. To meet this
obligation without imposing undue
expense on the public, the Coast Guard
periodically publishes a list of these
temporary safety zones, security zones,
special local regulations, regulated
navigation areas and drawbridge
operation regulations. Permanent rules
are not included in this list because they
are published in their entirety in the
Federal Register. Temporary rules are
also published in their entirety if
sufficient time is available to do so
before they are placed in effect or
terminated. The temporary rules listed
in this notice have been exempted from
review under Executive Order 12666,
Regulatory Planning and Review,
because of their emergency nature, or
limited scope and temporary
effectiveness.
The following unpublished rules were
placed in effect temporarily during the
period between March 2010 and July
2011 unless otherwise indicated.
Dated: November 2, 2011.
K.A. Sinniger,
Chief, Office of Regulations and
Administrative Law.
1ST–2ND QUARTER 2011 LISTING
mstockstill on DSK4VPTVN1PROD with RULES
Docket No.
USCG–2009–1007
USCG–2010–0424
USCG–2010–0563
USCG–2010–0564
USCG–2010–0565
USCG–2010–0828
USCG–2010–0829
USCG–2010–0939
VerDate Mar<15>2010
Location
.........................................
.........................................
.........................................
.........................................
.........................................
.........................................
.........................................
.........................................
16:08 Nov 10, 2011
Jkt 226001
Type
Quillayute River ..................................
Memphis, TN ......................................
Washington, DC .................................
Philadelphia, PA .................................
Norfolk, VA .........................................
Biloxi, MS ...........................................
Pascagoula, MS .................................
Vancouver, WA ..................................
Safety Zone (Part 165) ......................
Special Local Regulation (Part 100) ..
Safety Zone (Part 165) ......................
Security Zone (Part 165) ...................
Safety Zone (Part 165) ......................
Safety Zone (Part 165) ......................
Safety Zone (Part 165) ......................
Safety Zone (Part 165) ......................
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E:\FR\FM\14NOR1.SGM
14NOR1
Effective date
3/1/2010
4/16/2011
6/19/2011
11/14/2010
5/3/2011
3/17/2011
2/6/2011
1/27/2011
]]>Agencies
[Federal Register Volume 76, Number 219 (Monday, November 14, 2011)]
[Rules and Regulations]
[Pages 70340-70342]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29313]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 26 and 301
[TD 9556]
RIN 1545-BG89
Generation-Skipping Transfers (GST) Section 6011 Regulations and
Amendments to the Section 6112 Regulations
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations that provide rules
relating to the disclosure of listed transactions and transactions of
interest with respect to the generation-skipping transfer tax under
section 6011 of the Internal Revenue Code (Code), conforming amendments
under sections 6111 and 6112, and rules relating to the preparation and
maintenance of lists with respect to reportable transactions under
section 6112. The regulations affect taxpayers participating in listed
transactions and transactions of interest and material advisors to such
transactions. The final regulations also contain rules under section
6112 that affect material advisors to reportable transactions. These
regulations provide guidance regarding the length of time a material
advisor has to prepare the list that must be maintained after the list
maintenance requirement first arises with respect to a reportable
transaction. These regulations also clarify guidance regarding
designation agreements.
DATES: These regulations are effective November 14, 2011.
FOR FURTHER INFORMATION CONTACT: Charles D. Wien, (202) 622-3070 (not a
toll-free number).
Background
This document contains final regulations that amend 26 CFR part 26
to provide rules for purposes of the generation-skipping transfer tax
that require the disclosure of listed transactions and transactions of
interest by certain taxpayers on their Federal tax returns under
section 6011. This document also contains final regulations that modify
and clarify some of the rules under 26 CFR part 301 relating to the
disclosure obligations of material advisors under section 6111 and the
list maintenance requirements of material advisors with respect to
reportable transactions under section 6112.
On July 31, 2007, the IRS and Treasury Department issued final
regulations under section 6011 (TD 9350; 72 FR 43146), 6111 (TD 9351;
72 FR 43157) and 6112 (TD 9352; 72 FR 43154) (the July 2007
regulations) that were published in the Federal Register on August 3,
2007. In the July 2007 regulations, the IRS and Treasury Department
amended 26 CFR parts 20, 25, 31, 53, 54, and 56 to provide that certain
taxpayers would be required to disclose transactions of interest, in
addition to listed transactions, on their Federal tax returns under
section 6011. On September 10, 2009, the IRS and Treasury Department
issued a notice of proposed rulemaking under sections 6011, 6111, and
6112 (REG-136563-07) (the September 2009 proposed regulations). The
September 2009 proposed regulations were published in the Federal
Register (74 FR 46705) on September 11, 2009.
In response to the September 2009 proposed regulations, the IRS and
Treasury Department received two written public comments. A public
hearing was not requested. After consideration of the comments
received, the IRS and Treasury Department are adopting the proposed
regulations without change.
Explanation of Comments
Two commentators expressed concern that if the IRS and Treasury
Department designate a transaction involving gift, estate, or
generation-skipping transfer taxes as a listed transaction or
transaction of interest, that a corporate fiduciary, merely by acting
as an executor or trustee with respect to an estate or trust that is
incidental to the transaction, would be treated as a material advisor
under section 6112 and the regulations thereunder. One of the
commentators proposed that the September 2009 proposed regulations and
existing final regulations under sections 6011, 6111, and 6112 be
amended to require public comment before a transaction involving
Chapters 11, 12, and 13 of the Code can be designated as a listed
transaction or transaction of interest.
The IRS and Treasury Department believe that in the situation
described by the commentators the existing regulations under sections
6111 and 6112 properly address which parties are material advisors, and
transactions involving gift, estate, or generation-skipping transfer
taxes should not be treated differently than other transactions. A
fiduciary will not be treated as a material advisor merely by acting as
an executor or trustee with respect to an estate or trust that is
incidental to a transaction. A fiduciary will be treated as a material
advisor only if the fiduciary provides material aid, assistance or
advice as described in Sec. 301.6111-3(b)(2), the fiduciary directly
or indirectly derives gross income in excess of the threshold amount as
described in Sec. 301.6111-3(b)(3), and the transaction is entered
into by the taxpayer.
In addition, the regulations are not amended to require advance
notice before designating a transaction as a transaction of interest or
as a listed transaction as suggested by a commentator. In appropriate
circumstances, the IRS and Treasury Department may choose to publish
advance notice of a transaction of interest and request comments in
certain circumstances. The IRS and Treasury Department will determine
whether to provide advance notice and a request for comments on a
transaction by transaction basis. Accordingly, the proposed regulations
will be adopted without change.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required. It has also been
determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these regulations. It is hereby
certified that the collection of information in these regulations will
not have a significant economic impact on a substantial number of small
entities. This certification is based on the fact that most of the
material advisors affected by these regulations are not small entities
and for those material advisors that are small entities most of the
information is already required under the current regulations. Any
additional recordkeeping burdens on material advisors that result from
this regulation are insubstantial. Also, the collection of information
referenced in these regulations has been approved under OMB control
number 1545-1686. The clarification and new information required by
these final regulations add little or no new burden to those existing
[[Page 70341]]
requirements. Therefore, a Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required.
Pursuant to section 7805(f) of the Code, the notice of proposed
rulemaking preceding these regulations was submitted to the Chief
Counsel for Advocacy of the Small Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these regulations is Charles D. Wien,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and Treasury
Department participated in their development.
List of Subjects
26 CFR Part 26
Estate taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 26 and 301 are amended as follows:
PART 26--GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX
REFORM ACT OF 1986
0
Paragraph 1. The authority citation for part 26 is amended to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 26.6011-4 also issued under 26 U.S.C. 6011 * * *
0
Par. 2. Section 26.6011-4 is added to read as follows:
Sec. 26.6011-4 Requirement of statement disclosing participation in
certain transactions by taxpayers.
(a) In general. If a transaction is identified as a listed
transaction or a transaction of interest as defined in Sec. 1.6011-4
of this chapter by the Commissioner in published guidance, and the
listed transaction or transaction of interest involves a tax on
generation-skipping transfers under chapter 13 of subtitle B of the
Internal Revenue Code, the transaction must be disclosed in the manner
stated in such published guidance.
(b) Effective/applicability date. This section applies to listed
transactions and transactions of interest entered into on or after
November 14, 2011.
PART 301--PROCEDURE AND ADMINISTRATION
0
Par. 3. The authority citation for part 301 continues to read in part
as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 4. Section 301.6111-3 is amended as follows:
0
a. Paragraphs (b)(2)(i)(A) and (b)(3)(i)(B) are amended by adding the
language ``26.6011-4,'' after each occurrence of ``25.6011-4,''.
0
b. Paragraphs (c)(2) and (c)(13) are amended by adding the language
``26.6011-4,'' after ``25.6011-4,''.
0
c. Paragraph (i)(1) is revised.
The revision reads as follows:
Sec. 301.6111-3 Disclosure of reportable transactions.
* * * * *
(i) Effective/applicability date--(1) In general. This section
applies to transactions with respect to which a material advisor makes
a tax statement on or after August 3, 2007. However, this section
applies to transactions of interest entered into on or after November
2, 2006, with respect to which a material advisor makes a tax statement
under this section on or after November 2, 2006. Paragraphs
(b)(2)(i)(A), (b)(3)(i)(B), (c)(2), and (c)(13) of this section apply
to transactions with respect to which a material advisor makes a tax
statement under this section after November 14, 2011. Paragraph (h) of
this section applies to ruling requests received on or after November
2, 2006. Otherwise, the rules that apply on or before November 14, 2011
are contained in this section in effect prior to November 14, 2011 (see
26 CFR part 301 revised as of April 1, 2011).
* * * * *
0
Par. 5. Section 301.6112-1 is amended as follows:
0
1. Paragraph (b)(1) is revised.
0
2. Paragraphs (c)(3) and (c)(12) are amended by adding the language
``26.6011-4,'' after ``25.6011-4,''.
0
3. Paragraphs (f) and (g) are revised.
The revisions read as follows:
Sec. 301.6112-1 Material advisors of reportable transactions must
keep lists of advisees, etc.
* * * * *
(b) * * *
(1) In general. A separate list must be prepared and maintained for
each reportable transaction. However, one list must be maintained for
substantially similar transactions. A material advisor will have 30
calendar days from the date the list maintenance requirement first
arises (see Sec. 301.6111-3(b)(4) and paragraph (a) of this section)
with respect to a reportable transaction to prepare the list that must
be maintained under this section with respect to that transaction. The
Commissioner in his discretion also may provide in published guidance
designating a transaction as a reportable transaction a list
preparation time period greater than 30 calendar days. If a list is
requested under this section during the list preparation time period,
the request for the list will be treated as having been made on the day
after the list preparation time period ends. A list must be maintained
in a form that enables the IRS to determine without undue delay or
difficulty the information required in paragraph (b)(3) of this
section. The Commissioner in his discretion may provide in published
guidance a form or method for maintaining or furnishing the list.
* * * * *
(f) Designation agreements. If more than one material advisor is
required to maintain a list of persons for a reportable transaction, in
accordance with paragraph (b) of this section, the material advisors
may designate by written agreement a single material advisor (the
designated material advisor) to maintain the list or a portion of the
list. A designation agreement does not relieve material advisors from
their obligation to maintain a list in accordance with paragraph (b) of
this section or to furnish their list to the IRS in accordance with
paragraph (e)(1) of this section, but a designation agreement may allow
one material advisor to maintain a list on behalf of the other material
advisors who are a party to the designation agreement. A material
advisor is not relieved from the requirement of this section because a
material advisor is unable to obtain the list from any designated
material advisor, any designated material advisor did not maintain a
list, or the list maintained by any designated material advisor is not
complete. The existence of a designation agreement does not affect the
ability of the IRS to request a list from any party to the designation
agreement. The IRS may request a list from any party to the designation
agreement, and the party receiving the request must furnish their list
to the IRS in accordance with paragraph (e)(1) of this section,
regardless of whether their list was maintained by another party
pursuant to the terms of a designation agreement.
(g) Effective/applicability date. In general, this section applies
to transactions with respect to which a material advisor makes a tax
statement under Sec. 301.6111-3 on or after August 3,
[[Page 70342]]
2007. However, this section applies to transactions of interest entered
into on or after November 2, 2006, with respect to which a material
advisor makes a tax statement under Sec. 301.6111-3 on or after
November 2, 2006. Paragraphs (b)(1), (c)(3), (c)(12), and (f) of this
section apply to transactions with respect to which a material advisor
makes a tax statement under Sec. 301.6111-3 after November 14, 2011.
Otherwise, the rules that apply on or before November 14, 2011 are
contained in this section in effect prior to November 14, 2011 (see 26
CFR part 301 revised as of April 1, 2011).
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: November 4, 2011.
Emily S. McMahon,
Assistant Secretary of the Treasury, Tax Policy.
[FR Doc. 2011-29313 Filed 11-10-11; 8:45 am]
BILLING CODE 4830-01-P
