West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-10J - Abusive Tax Shelters
Section 110-10J-3 - Definitions

3.2.5.1. The name of each transaction that is a potentially abusive tax shelter and the registration number, if any, obtained under I.R.C. § 6111;

3.2.5.2. The tax identification number, if any, of each transaction;

3.2.5.3. The name, address, and tax identification number of each person required to be on the list;

3.2.5.4. If applicable, the number of units (i.e., percentage of profits, number of shares, etc.) acquired by each person required to be included on the list;

3.2.5.5. The date on which each interest was acquired;

3.2.5.6. The amount invested in each transaction by each person required to be included on the list;

3.2.5.7. A detailed description of each transaction that describes both the structure and its expected tax consequences;

3.2.5.8. A summary or schedule of the tax consequences that each person is intended or expected to derive from participation in each transaction, if known by the material advisor;

3.2.5.9. Copies of any additional written materials, including tax analyses or opinions, relating to each transaction that have been shown or provided to any person who acquired an interest in the transaction, or his or her representatives, tax advisors, or agents, by the material advisor or any related party or agent of the material advisor; and

3.2.5.10. For each person, if the interest in the transaction was not acquired from the material advisor maintaining the list, the name of the person from whom the interest was acquired.

3.2.7.1. $10,000,000 in any single taxable year or $20,000,000 in any combination of taxable years for corporations;

3.2.7.2. $10,000,000 in any single taxable year or $20,000,000 in any combination of taxable years for partnerships that have only corporations as partners (looking through any partners that are themselves partnerships), whether or not any losses flow through to one or more partners; or $2,000,000 in any single taxable year or $4,000,000 in any combination of taxable years for all other partnerships, whether or not any losses flow through to one or more partners;

3.2.7.3. $2,000,000 in any single taxable year or $4,000,000 in any combination of taxable years for individuals, S corporations, or trusts, whether or not any losses flow through to one or more shareholders or beneficiaries; or

3.2.7.4. $50,000 in any single taxable year for individuals or trusts, whether or not the loss flows through from an S corporation or partnership, if the loss arises with respect to a section 988 transaction (as defined in I.R.C. § 988(c)(1) relating to foreign currency transactions).

3.2.8.1. Must register the transaction as a tax shelter under federal law;

3.2.8.2. Receives, or expects to receive, at least a minimum fee in connection with a transaction that is a potentially abusive tax shelter: Provided, That the minimum fee is $250,000 if the acquiring entities are corporations, other than S corporations. For all other transactions, the minimum fee is $50,000. When calculating the minimum fee, each transaction is evaluated separately to determine whether the minimum fee threshold is satisfied; and

3.2.8.3. Makes or provides any oral or written statement to any person about the potential tax consequences of that transaction.

3.2.14.1. Listed transactions;

3.2.14.2. Confidential transactions;

3.2.14.3. Transactions with contractual protection;

3.2.14.4. Loss transactions;

3.2.14.5. Transactions with a significant book-tax difference: Provided, That significant book-tax difference transactions entered into on or after January 6, 2006 that do not also describe any other reportable transaction in Treasury Regulation Section 1.6011-4 will no longer be classified as reportable transactions: Provided, however, That this removal of significant book-tax difference transactions from the categories of reportable transactions does not relieve taxpayers, tax shelter organizers or material advisors of any disclosure, registration or list maintenance obligations for transactions that should have been disclosed or registered, or for transactions for which lists should have been prepared and maintained, prior to January 6, 2006; and

3.2.14.6. Transactions involving a brief asset holding period.

3.2.15.1. The amount of the increase (if any) in taxable income, as determined by reference to the amount of post-apportioned income that results from a difference between the proper tax treatment of an item to which this paragraph applies and the taxpayer's treatment of that item as shown on the taxpayer's return, including an amended return filed prior to the date the taxpayer is first contacted by the Tax Commissioner regarding the examination of the return; and

3.2.15.2. The applicable tax rates.

3.2.17.1. Any organizer, underwriter, broker, or dealer (or other similar person) who transfers any interest in a tax shelter;

3.2.17.2. Any agent who negotiates the transfer of any interest in a tax shelter for the tax shelter, an organizer, or other person described in paragraph 3.2.13 of this rule;

3.2.17.3. Any investor (not described in subdivision 3.2.13 of this rule) who transfers any interest in a tax shelter; or

3.2.17.4. Any other person who receives consideration in connection with another person's right to participate in a tax shelter, for services necessary to the organization or structure of the tax shelter (other than services that do not constitute participation in the organization or management of a tax shelter under Treasury Regulation Section 301.6111-1T), or for information that is integral to the participation in the tax shelter.