Current through Register Vol. 48, No. 38, September 20, 2024
a) Requirement to Register Tax Shelters and
Listed Transactions.
1) For the period
beginning July 30, 2004 and ending October 22, 2004, under IITA Section
1405.5(a), any tax shelter organizer required to register a "tax shelter" under
26 USC
6111 is required to register that tax shelter
with the Department.
26 USC
6111 was amended by
Public Law
108-357 to delete any reference to "tax shelter".
Accordingly IITA Section 1405.5(a) has no application after October 22, 2004,
the effective date of Public Law 108-357.
2) For the period beginning July 30, 2004 and
ending January 10, 2008, under IITA Section 1405.5(b), registration in the form
and manner prescribed by the Department is required for any transactions
entered into after February 28, 2000 that become listed transactions (as
defined in Section
100.5060
of Subpart N of this Part) at any time. Transactions requiring registration
under this provision are those transactions for which a list is required to be
furnished to the Department pursuant to IITA Section 1405.6(b) and Section
100.5070(a)(2)
of this Part.
b) Time and Manner for Making Registration.
Registration under IITA Section 1405.5(b) and subsection (a)(2) of this Section
shall be required only of the person required to furnish the investor list with
respect to the transaction under Section
100.5070
of this Part. Registration will be due at the time the investor list is
required to be furnished to the Department, and properly furnishing the
investor list for a transaction (including the name, address, and taxpayer
identification number of the person required to furnish the list) shall be
deemed to be registration of the transaction for purposes of IITA Section
1405.5(b) and subsection (a)(2) of this Section.
c) Disclosure of Reportable Transaction by
Material Advisor.
1) In General. On and after
January 11, 2008, any material advisor required to file a return under
26 USC
6111 and
26 CFR
301.6111-3 with respect to a reportable
transaction subject to this Section shall file a copy of the return not later
than the day on which the return is required to be filed under federal
law.
2) Reportable Transactions
Subject to this Section.
A) A copy of the
return required to be filed by a person under
26 USC
6111 and
26 CFR
301.6111-3 is required to be filed under this
Section if that person is a material advisor with respect to a transaction
having nexus with Illinois. A person is a material advisor with respect to a
transaction having nexus with Illinois if:
i)
The person is a material advisor with respect to the transaction;
ii) The person makes or provides a tax
statement to or for the benefit of an Illinois taxpayer, or the person makes or
provides a tax statement to or for the benefit of another material advisor who
makes or provides a tax statement to or for the benefit of an Illinois
taxpayer; and
iii) The transaction
is entered into by an Illinois taxpayer.
B) Material advisors, including those who
cease providing services before the time the transaction is entered into by an
Illinois taxpayer, must make reasonable and good faith efforts to determine
whether the transaction has been entered into by an Illinois
taxpayer.
3) Time for
Filing Return.
A) In General. The return
required to be filed under this Section (including an amended return required
to be filed under
26 CFR
301.6111-3(d)(1)) must be
filed not later than the time the same return is required to be filed under
26 CFR
301.6111-3.
B) Special Rule. If, at the time a material
advisor is required to file a return with respect to a reportable transaction
under
26 USC
6111 and
26 CFR
301.6111-3, no return is required under this
subsection (c) because the events described in subsections (c)(2)(B) and (C)
have not occurred, but those events subsequently do occur, then a copy of the
return required to be filed under the federal law shall be filed with the
Department by the last day of the month that follows the end of the calendar
quarter in which the events occur.
C) Designation Agreements. If the obligation
under
26 USC
6111 and
26 CFR
301.6111-3 of a material advisor with respect
to a transaction having nexus with Illinois is to be satisfied pursuant to a
designation agreement under
26 CFR
301.6111-3(f) by a person
who is not required to file a return under this subsection (c), the material
advisor with respect to that transaction having nexus with Illinois must file a
copy of the return filed pursuant to the designation agreement not later than
the time the return must be filed under the federal law. The copy may be filed
on the material advisor's behalf by the person designated under the designation
agreement.
4) Protective
Disclosure. If the obligation under
26 USC
6111 and
26 CFR
301.6111-3 of a material advisor with respect
to a transaction having nexus with Illinois is satisfied by the filing of a
protective disclosure under
26 CFR
301.6111-3(g), then the
filing of a copy of the protective disclosure with the Department shall satisfy
the obligation under IITA Section 1405.5 and this subsection (c).
5) Ruling Request. If the obligation under
26 USC
6111 and
26 CFR
301.6111-3 of a material advisor with respect
to a transaction having nexus with Illinois is satisfied by the filing of a
ruling request under
26 CFR
301.6111-3(h), then the
filing of a copy of the submission that is deemed to satisfy the federal return
requirement by the last day of the month following the end of the calendar
quarter in which the Internal Revenue Service notified the material advisor
that the submission satisfies the federal return requirement shall satisfy the
obligation under IITA Section 1505.5 and this subsection (c).
6) Definitions. For purposes of this
subsection (c), the following definitions apply:
A) Material Advisor. The term material
advisor with respect to a reportable transaction means a person who is a
material advisor with respect to the transaction defined under
26 USC
6111(b)(1) and
26 CFR
301.6111-3(b).
B) Reportable Transaction. The term
reportable transaction has the same meaning as prescribed in
26 CFR
301.6111-3(c)(1).
C) Tax Statement. The term tax statement has
the same meaning as prescribed in 26 CFR 301.6111 - 3(b)(2)(ii).
D) Illinois Taxpayer. The term Illinois
taxpayer means, with respect to a reportable transaction, any person whose base
income allocable or apportionable to Illinois is affected by the reportable
transaction. In the case of a group of corporations required to file a combined
return under IITA Section 502(e), the term Illinois taxpayer refers to the
combined group.
7) Place
for Filing. Returns required to be furnished to the Department under this
Section shall be sent to:
Illinois Department of Revenue
P. O. Box 19029
Springfield IL 62794-9029