Internal Revenue Bulletin 2000-11 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

INCOME TAX
Rev. Rul. 2000–12, page 744.
Treatment of certain debt acquisitions.This ruling ad-
dresses three situations in which a taxpayer acquires two
debt instruments that are structured so that it is expected
that the value of one will increase significantly, at the same
time that the value of the other one decreases significantly,
and holds that in each situation the taxpayer cannot recog-
nize the claimed loss on the sale of the debt instrument that
decreases in value while not recognizing the gain on the
other debt instrument.
T.D. 8877, page 747.
REG–103735–00, page 770.
Proposed and temporary regulations require certain corpo-
rate taxpayers to file a statement with their federal corpo-
rate income tax returns under section 6011(a) of the Code.
A public hearing is scheduled for June 20, 2000.
EXCISE TAX
Rev. Proc. 2000–17, page 766.
Excise tax; minimum funding standard.This revenue pro-
cedure provides that under certain circumstances the second
tier excise tax described in section 4971(b) of the Code, which
is imposed as a result of the failure to meet the minimum fund-
ing standards under section 412, will be waived automatically.
ADMINISTRATIVE
T.D. 8875, page 761.
REG–103736–00, page 768.
Proposed and temporary regulations relate to the mainte-
nance of lists of investors in potentially abusive tax shelters
under section 6112 of the Code. A public hearing is sched-
uled for June 20, 2000.
T.D. 8876, page 753.
REG–110311–98, page 767.
Proposed and temporary regulations relate to the registra-
tion of confidential corporate tax shelters pursuant to sec-
tion 6111(d) of the Code. A public hearing is scheduled for
June 20, 2000.
Announcement 2000–13, page 771.
This announcement corrects final regulations T.D. 8847
(1999–52 I.R.B. 701) under sections 743, 754, and 755 of
the Code relating to adjustments following the sale of part-
nership interests.
Announcement 2000–14, page 772.
This announcement explains that supplemental information
on Short-Term Treasury Bills for Publication 1212, List of
Original Issue Discount Instruments(revised December
1999), is now available.
Internal Revenue
bbuulllleettiinn
Bulletin No. 2000–11
March 13, 2000
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page ii.

March 13, 20002000–11 I.R.B.
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
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stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
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wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and procedures that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
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islation, regulations, court decisions, rulings, and proce-
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clusions in other cases unless the facts and circumstances
are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions, and Subpart B, Legislation and Related
Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and Sub-
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istrative Rulings. Bank Secrecy Act Administrative Rulings
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This part includes notices of proposed rulemakings, disbar-
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ing them understand and meet their tax responsibilities
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Introduction
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

March 13, 20007442000–11 I.R.B.
Section 165.—Losses
26 CFR 1.165–1: Losses. See Rev. Rul. 2000–12,
page 744.
Section 1275.—Other
Definitions and Special Rules
26 CFR 1.1275–2: Special rules relating to debt
instruments. (Also section 165; 1.165–1.)
26 CFR 1.1275–6: Integration of qualifying debt
instruments.
Treatment of certain debt acquisi-
tions. This ruling addresses three situa-
tions in which a taxpayer acquires two
debt instruments that are structured so
that it is expected that the value of one
will increase significantly at the same
time that the value of the other one de-
creases significantly, and holds that in
each situation the taxpayer cannot recog-
nize the claimed loss on the sale of the
debt instrument that decreases in value
while not recognizing the gain on the
other debt instrument.
Rev. Rul. 2000–12
ISSUE
Under the circumstances described
below, if a taxpayer acquires two debt in-
struments that are structured so that it is ex-
pected that the value of one will increase
significantly at the same time that the value
of the other one decreases significantly, can
the taxpayer recognize a current loss on the
sale of the debt instrument that decreases in
value while not recognizing the gain on the
other debt instrument?
FACTS
Situation 1
Xis a corporation that files returns on a
calendar-year basis. On September 1,
1993, Xpurchases two privately-placed
debt instruments, Note 1 and Note 2, from
unrelated issuers for $1,000,000 each.
Note 1 has a 10-year term and a stated
principal amount of $1,000,000. It pro-
vides for quarterly interest payments, be-
ginning on December 1, 1993. The inter-
est rate for the first quarter is 5.9 percent,
compounded quarterly. Note 1 provides
for contingent payments based on an event
that will occur (or not occur) with a proba-
bility of 50 percent on December 1, 1993
(the reset event). The reset event does not
depend on actively traded personal prop-
erty. If the reset event occurs, the interest
rate doubles to 11.8 percent, compounded
quarterly. If the reset event does not occur,
the interest rate is reset at zero.
Note 2 has the same terms as Note 1
except that the consequences of the con-
tingency are reversed. Thus, if the reset
event occurs, the interest rate is reset at
zero. If the reset event does not occur, the
interest rate doubles to 11.8 percent, com-
pounded quarterly.
At the time the notes are purchased,
based upon the structure of the notes, it can
be expected that, as a result of the reset, one
note will increase significantly in value and
the other note will decrease in value by the
same amount. The expected tax loss on the
note that decreases in value significantly
exceeds any reasonably expected economic
loss on the two notes.
On December 1, 1993, the reset event
does not occur. Thus, on that date, the in-
terest rate on Note 1 is reset at zero, and
the interest rate on Note 2 doubles to 11.8
percent, compounded quarterly. As a re-
sult of the reset, the fair market value of
Note 2 increases significantly because of
the doubling of its interest rate, and the
fair market value of Note 1 decreases by
the same amount. On December 2, 1993,
Xsells Note 1 for its fair market value and
claims a loss.
Situation 2
Yis a corporation that files returns on a
calendar-year basis. On September 1,
1998, Ypurchases two privately-placed
debt instruments, Note 3 and Note 4, from
unrelated issuers for $1,000,000 each.
Note 3 has a 10-year term and a stated
principal amount of $1,000,000. It pro-
vides for quarterly interest payments, be-
ginning on December 1, 1998. The interest
rate for the first quarter is 5.7 percent, com-
pounded quarterly. Note 3 provides for
contingent payments based on an event that
will occur (or not occur) with a probability
of 50 percent on December 1, 1998 (the
reset event). The reset event does not de-
pend on actively traded personal property.
If the reset event occurs, the interest rate
doubles to 11.4 percent, compounded quar-
terly. If the reset event does not occur, the
interest rate is reset at zero.
Note 4 has the same terms as Note 3
except that the consequences of the con-
tingency are reversed. Thus, if the reset
event occurs, the interest rate is reset at
zero. If the reset event does not occur, the
interest rate doubles to 11.4 percent, com-
pounded quarterly.
At the time the notes are purchased,
based upon the structure of the notes, it can
be expected that, as a result of the reset, one
note will increase significantly in value and
the other note will decrease in value by the
same amount. The expected tax loss on the
note that decreases in value significantly
exceeds any reasonably expected economic
loss on the two notes.
On December 1, 1998, the reset event
does not occur. Thus, on that date, the in-
terest rate on Note 3 is reset at zero, and the
interest rate on Note 4 doubles to 11.4 per-
cent, compounded quarterly. As a result of
the reset, the fair market value of Note 4 in-
creases significantly because of the dou-
bling of its interest rate, and the fair market
value of Note 3 decreases by the same
amount. On December 2, 1998, Ysells
Note 3 for its fair market value and claims a
loss.
Situation 3
Zis a corporation that files returns on a
calendar-year basis. On September 1,
1998, Zpurchases two privately-placed
debt instruments, Note 5 and Note 6, from
unrelated issuers.
Note 5 is purchased for $1,000,000.
Note 5 has a 10-year term and a stated prin-
cipal amount of $1,000,000. It provides for
quarterly interest payments, beginning on
December 1, 1998. The interest rate for the
first quarter is 5.7 percent, compounded
quarterly. Note 5 provides for contingent
payments based on an event that will occur
(or not occur) with a probability of 50 per-
cent on December 1, 1998 (the reset event).
The reset event does not depend on actively
traded personal property. If the reset event
occurs, the interest rate doubles to 11.4 per-
cent, compounded quarterly. If the reset
event does not occur, the interest rate is
reset at zero.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

2000–11 I.R.B.745March 13, 2000
Note 6 is purchased for $615,000.
Note 6 has a 20-year term and a stated
principal amount of $615,000. It provides
for quarterly interest payments beginning
on December 1, 1998. The interest rate
on Note 6 for the first quarter is set at 3-
month LIBOR. If the reset event occurs,
the interest rate is reset at zero. If the
reset event does not occur, the interest
rate doubles to 200 percent of 3-month
LIBOR, adjusted quarterly.
At the time the notes are purchased,
based upon the structure of the notes, it
can be expected that, as a result of the
reset, the value of one note will increase
significantly and the value of the other
note will decrease significantly. The ex-
pected tax loss on the note that decreases
in value significantly exceeds any reason-
ably expected economic loss on the two
notes.
On December 1, 1998, the reset event
does not occur. Thus, on that date, the in-
terest rate on Note 5 is reset at zero, and
the interest rate on Note 6 doubles to 200
percent of 3-month LIBOR, adjusted
quarterly. As a result, the fair market
value of Note 6 increases significantly be-
cause of the doubling of its interest rate,
and the fair market value of Note 5 de-
creases significantly. On December 2,
1998, Zsells Note 5 for its fair market
value and claims a loss.
LAW AND ANALYSIS
Situation 1
Section 165(a) of the Internal Revenue
Code provides that there shall be allowed
as a deduction any loss sustained during
the taxable year and not compensated for
by insurance or otherwise. Section
1.165–1(b) of the Income Tax Regula-
tions provides, in addition, that for a loss
to be allowable as a deduction under §
165(a), it must be evidenced by closed
and completed transactions, fixed by
identifiable events, and actually sustained
during the taxable year. Section
1.165–1(b) also provides that only a bona
fide loss is allowable and that substance
and not mere form shall govern in deter-
mining a deductible loss.
The courts have held that a loss is al-
lowable as a deduction for federal income
tax purposes only if it is bona fide and re-
flects actual economic consequences. An
artificial loss lacking economic substance
is not allowable. See ACM Partnership v.
Commissioner, 157 F.3d 231, 252 (3
d
Cir.
1998) (“Tax losses such as these ... which
do not correspond to any actual economic
losses, do not constitute the type of ‘bona
fide’ losses that are deductible under the
Internal Revenue Code and regulations.”),
cert. denied, 526 U.S. 1017 (1999); Scully
v. United States, 840 F.2d 478, 486 (7
th
Cir. 1988) (to be deductible, a loss must
be a “genuine economic loss”); Shoen-
berg v. Commissioner, 77 F.2d 446, 448
(8
th
Cir. 1935) (to be deductible, a loss
must be “actual and real”), cert. denied,
296 U.S. 586 (1935).
The courts similarly have disallowed
losses from option-straddle transactions
that were found to be devoid of economic
substance. The option-straddle transac-
tions were prearranged to generate a loss
for tax purposes while deferring an offset-
ting gain. Even though the relevant trades
may have taken place, the loss deduction
claimed was not allowed because no true
loss had occurred. Lerman v. Commis-
sioner, 939 F.2d 44, 52 (3
d
Cir. 1991),
cert. denied, 502 U.S. 984 (1991), and
Keane v. Commissioner, 865 F.2d 1088,
1092 (9
th
Cir. 1989), aff ’g Glass v. Com-
missioner, 87 T.C. 1087 (1986).
The sale of Note 1 in Situation 1does
not produce an allowable loss under §
165. When Xsells Note 1 before its ma-
turity date but retains Note 2, Xdoes not
realize an actual economic loss because
the purported loss on the sale of Note 1 is
substantially offset by the unrealized gain
in Note 2. Such an artificial loss is not al-
lowable for federal income tax purposes.
Situation 2
Sections 1271 through 1275, and the
regulations thereunder, provide rules for
the taxation of holders of debt instru-
ments, including debt instruments that
provide for one or more contingent pay-
ments. These rules generally require
holders of debt instruments to accrue
original issue discount (OID) using the
constant-yield method. Note 3 and Note
4 are subject to the OID rules because the
notes provide for contingent payments.
Section 1.1275–6 generally provides
for the integration of a “qualifying debt
instrument” with a “§ 1.1275–6 hedge” if
the combined cash flows of the compo-
nents are substantially equivalent to the
cash flows on a fixed rate debt instrument
or a variable rate debt instrument that
pays interest at a qualified floating rate.
When § 1.1275–6 applies, the combined
cash flows of the qualifying debt instru-
ment and the § 1.1275–6 hedge generally
are treated as a synthetic debt instrument
for all federal income tax purposes. The
purpose of § 1.1275–6 is to permit a more
appropriate determination of the character
and timing of income, deductions, gains,
or losses than would be achieved by sepa-
rate treatment of the components. Section
1.1275–6 generally applies to qualifying
debt instruments issued on or after August
13, 1996.
Under § 1.1275–6(b)(1), a contingent
payment debt instrument (CPDI) that is
issued for cash is a qualifying debt instru-
ment. Under § 1.1275–6(b)(2)(i), a §
1.1275–6 hedge is any financial instru-
ment (including a debt instrument) if the
combined cash flows of the financial in-
strument and the qualifying debt instru-
ment permit the calculation of a yield to
maturity (under the principles of § 1272)
or the right to the combined cash flows
would qualify under § 1.1275–5 as a vari-
able rate debt instrument that pays interest
at a qualified floating rate or rates (except
for the requirement that the interest pay-
ments be stated as interest)(fixed-or-float-
ing requirement).
Section 1.1275–6(b)(2)(ii)(B) provides
that a debt instrument can be a § 1.1275–6
hedge only if it is issued substantially
contemporaneously with, and has the
same maturity (including rights to accel-
erate or delay payments) as, the qualify-
ing debt instrument.
Section 1.1275–6(c)(2) grants the
Commissioner authority to integrate a
qualifying debt instrument that is a CPDI
with a § 1.1275–6 hedge if the combined
cash flows are substantially the same as
either of the cash flows necessary to sat-
isfy the fixed-or-floating requirement of §
1.1275–6(b)(2)(i). This rule allows the
Commissioner to prevent the potential
timing and character mismatches that
arise if the CPDI and its hedge are treated
separately.
Section 1.1275–6(d)(2) provides rules
for legging out of an integrated transac-
tion. Section 1.1275–6(d)(2)(i)(B) sets
out the rules for determining when a leg-
ging out occurs if the Commissioner has
integrated a qualifying debt instrument
and a financial instrument under §

March 13, 20007462000–11 I.R.B.
1.1275–6(c)(2). Under those rules, the
taxpayer legs out of the integrated trans-
action if, prior to the maturity of the syn-
thetic debt instrument, the requirements
for Commissioner integration under §
1.1275–6(c)(2) are no longer met. Sec-
tion 1.1275–6(d)(2)(ii) provides that if the
taxpayer legs out of an integrated transac-
tion, then the taxpayer is treated as selling
or otherwise terminating the synthetic
debt instrument, immediately before leg-
ging out, for its fair market value and re-
alizing and recognizing at that time any
resulting income, deduction, gain, or loss.
In Situation 2, unlike Situation 1, the
notes are issued after the effective date
of the integration rules of § 1.1275–6
and qualify for integration by the Com-
missioner under § 1.1275–6(c)(2). In
this case, the Commissioner integrates
the notes under § 1.1275–6(c)(2) as of
the issue date. Upon the sale of Note 3,
the requirements for Commissioner inte-
gration under § 1.1275–6(c)(2) are no
longer met. Therefore, Yis treated as
legging out of the integrated transaction
under § 1.1275–6(d)(2)(ii).
Under the legging out rules of §
1.1275–6(d)(2)(ii), immediately before
Note 3 is sold, Yis treated as disposing
of the synthetic debt instrument for its
fair market value, and Ymust realize
and recognize at that time any gain or
loss on the deemed disposition. As a re-
sult, Ycannot recognize the claimed loss
on the sale of Note 3 while not recogniz-
ing the gain on Note 4.
Situation 3
Under § 1.1275–2(g), if a principal pur-
pose in structuring a debt instrument or
engaging in a transaction is to achieve a
result that is unreasonable in light of the
purposes of §§ 163(e), 1271 through
1275, or any related section of the Code,
the Commissioner can apply or depart
from the regulations under the applicable
sections as necessary or appropriate to
achieve a reasonable result. Section
1.1275–2(g) applies to debt instruments
issued on or after August 13, 1996.
Section 1.1275–2(g)(2) provides that
whether a result is unreasonable is deter-
mined based on all the facts and circum-
stances. A significant fact is whether the
treatment of the debt instrument is ex-
pected to have a substantial effect on the
issuer’s or a holder’s U.S. tax liability.
A result is unreasonable only if there is
an expected substantial effect on the
present value of a taxpayer’s tax liabil-
ity.
A principal purpose of §§ 1271
through 1275 and related sections of the
Code is to tax holders of debt instru-
ments according to economic income as
determined by the constant-yield
method. These provisions ensure that
the holder of a debt instrument cannot
artificially avoid, defer, or offset timely
recognition of the economic income
from the debt instrument.
In Situation 3, the notes are issued after
the effective dates of the integration rules
of § 1.1275–6 and the anti-abuse rule of §
1.1275–2(g). But for the anti-abuse rule,
there are two reasons why the integration
rules would not apply. First, it cannot be
determined at the time of issuance
whether the combined cash flows will be
substantially the same as either of the
cash flows necessary to satisfy the fixed-
or-floating requirement of §
1.1275–6(b)(2)(i). Second, the notes
have different maturities and, thus, they
do not meet the same-maturity limitation
of § 1.1275–6(b)(2)(ii)(B).
If the structure of the transaction were
respected for federal income tax pur-
poses, Zwould be able to recognize the
claimed loss upon the sale of Note 5 even
though it could be expected, when Zpur-
chased the two notes, that, as a result of
the reset, one note would increase signifi-
cantly in value and the other note would
decrease significantly in value. The ex-
pected tax loss on the note that decreases
in value significantly exceeds any reason-
ably expected economic loss on the two
notes. Essentially, Zpurchased a series
of cash flows that, absent the application
of the anti-abuse rule of § 1.1275–2(g) (or
§ 165 principles), would produce an arti-
ficial loss immediately after the reset.
This result is unreasonable in light of
the purposes of the OID rules. The OID
rules were intended, in part, to ensure
that the holder of a debt instrument can-
not artificially avoid, defer, or offset
timely recognition of the economic in-
come from the debt instrument. In this
case, the transaction is structured to de-
feat this purpose by creating an artificial
loss immediately after the reset. Section
1.1275–2(g) authorizes the Commis-
sioner to apply or depart from the OID
regulations as necessary or appropriate
to prevent this unreasonable result.
In this case, the Commissioner de-
parts from the literal requirements of the
integration rules by integrating the two
notes before Note 5 is sold. Upon the
sale of Note 5, Zis treated as legging out
of an integrated transaction under §
1.1275–6(d)(2)(ii). Under the legging
out rules of § 1.1275–6(d)(2)(ii), imme-
diately before Note 5 is sold, Zis treated
as disposing of the synthetic debt instru-
ment for its fair market value, and Z
must realize and recognize at that time
any gain or loss on the deemed disposi-
tion. As a result, Zcannot recognize the
claimed loss on the sale of Note 5 while
not recognizing the gain on Note 6.
HOLDING
In each situation the taxpayer cannot
recognize the claimed loss on the sale of
the debt instrument that decreases in
value while not recognizing the gain on
the other debt instrument.
In Situation 1, the loss on the sale of
Note 1 is not allowed under § 165.
In Situation 2, the integration rule of
§ 1.1275–6(c)(2) applies. The Commis-
sioner integrates the notes as of the issue
date. Upon the sale of Note 3, Yis
treated as legging out of the integrated
transaction. Accordingly, Yis treated as
disposing of the synthetic debt instru-
ment at its fair market value immedi-
ately before the sale.
In Situation 3, the anti-abuse rule of §
1.1275–2(g) applies. The Commis-
sioner integrates the notes before Note 5
is sold. Upon the sale of Note 5, Zis
treated as legging out of the integrated
transaction. Accordingly, Zis treated as
disposing of the synthetic debt instru-
ment at its fair market value immedi-
ately before the sale.
DRAFTING INFORMATION
The principal authors of this revenue
ruling are Charles W. Culmer and
Christina A. Morrison of the Office of As-
sistant Chief Counsel (Financial Institu-
tions and Products). For further informa-
tion regarding this revenue ruling contact
Mr. Culmer on (202) 622-3950 or Ms.
Morrison on (202) 622-3960 (not a toll-
free call).

Section 6011.—General
Requirement of Return,
Statement, or List
26 CFR 1.6011–4T: Requirements of statement
disclosing participation in certain transactions by
corporate taxpayers (Temporary).
T.D. 8877
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
Tax Shelter Disclosure
Statements
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains
temporary regulations requiring certain
corporate taxpayers to file a statement
with their Federal corporate income tax
return under section 6011(a). The tempo-
rary regulations affect corporations par-
ticipating in certain reportable transac-
tions. The text of these temporary
regulations also serves as the text of the
proposed regulations set forth in the no-
tice of proposed rulemaking on this sub-
ject in REG–103735–00, page 770.
DATES: Effective date. These temporary
regulations are effective for Federal cor-
porate income tax returns filed after Feb-
ruary 28, 2000.
Applicability date. For dates of applic-
ability, see §1.6011–4T(g) of these regu-
lations.
FOR FURTHER INFORMATION CON-
TACT: Richard Castanon, (202) 622-
3080, or Mary Beth Collins, (202) 622-
3070, (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
These regulations are being issued
without prior notice and public procedure
pursuant to the Administrative Procedure
Act (5 U.S.C. 553). For this reason, the
collections of information contained in
these regulations have been reviewed and,
pending receipt and evaluation of public
comments, approved by the Office of
Management and Budget under control
number 1545-1685. Responses to these
collections of information are mandatory.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
OMB control number.
For further information concerning these
collections of information, and where to
submit comments on the collections of in-
formation and the accuracy of the estimated
burden, and suggestions for reducing this
burden, please refer to the preamble to the
cross-referencing notice of proposed rule-
making REG–103735–00, page 770.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
The Treasury Department and the IRS
are concerned about the proliferation of
corporate tax shelters. These temporary
regulations are intended to provide the
Service with early notification of large
corporate transactions with characteristics
that may be indicative of such tax shelter
activity.
Accordingly, this document amends 26
CFR part 1 regarding the general filing re-
quirement for persons required to file a
return for a taxable year with respect to a
tax imposed under section 11. Section
6011(a) provides that any person made li-
able for any tax imposed by the Internal
Revenue Code (Code), or with respect to
the collection thereof, shall make a return
or statement according to the forms and
regulations prescribed by the Secretary of
the Treasury.
Explanation of Provisions
I. Disclosure Statement Required for
Certain Corporate Taxpayers
The temporary regulations provide that
every person that is required to file a return
for a taxable year with respect to any tax
imposed under section 11 (corporate tax-
payers) and that has participated in a re-
portable transaction shall attach a disclo-
sure statement to its return for each taxable
year for which the taxpayer’s Federal in-
come tax liability is affected by its partici-
pation in the reportable transaction. In ad-
dition, a copy of the disclosure statement
must be sent to the IRS in Washington, DC
for the first taxable year for which the
transaction is disclosed on the taxpayer’s
Federal income tax return. The temporary
regulations outline the form and content of
the disclosure statement and also provide
an example of the statement.
Where the temporary regulations re-
quire a taxpayer to attach a disclosure
statement to its return, the information re-
quired to be set forth thereon is a required
part of the return to the same extent as in-
formation required pursuant to prescribed
forms. See §1.6011–1. Therefore, when
a taxpayer verifies its return, which in-
cludes a declaration that the return is
complete, a taxpayer affirms that it has
accurately made all disclosures required
by these temporary regulations.
In the event of an underpayment attribut-
able to a reportable transaction, a tax-
payer’s failure to satisfy the disclosure re-
quirements of the temporary regulations
may affect its exposure to penalties under
sections 6662 and 6663 of the Code. Sec-
tion 6664(c)(1) provides that such penalties
may not be imposed with respect to any
portion of a taxpayer’s underpayment “if it
is shown that there was a reasonable cause
for such portion andthat the taxpayer acted
in good faith with respect to such portion.”
(Emphasis added.) Whether a taxpayer is
considered to have satisfied the require-
ments of section 6664(c)(1) is determined
on a case-by-case basis, taking into account
all pertinent facts and circumstances. See
§1.6664–4(b)(1).
The fact that a professional tax advisor
has advised a taxpayer that its return posi-
tion is more likely than not the proper tax
treatment is not necessarily sufficient to
satisfy the requirements of section
6664(c)(1). If a taxpayer has an under-
payment attributable to its participation in
a reportable transaction that has not been
properly disclosed on its return, the
nondisclosure could indicate that the tax-
payer has not acted in “good faith” with
respect to the underpayment, even if the
taxpayer’s return position has sufficient
legal justification to meet the minimum
requirements of section 6664(c)(1). In
such a case, the determination of whether
a taxpayer has acted in “good faith” will
2000–11 I.R.B.747March 13, 2000

depend on all of the facts and circum-
stances, including the reason or reasons
why the taxpayer failed to make the re-
quired disclosure.
II. Reportable Transactions
The temporary regulations define two
categories of reportable transactions. The
first category includes certain types of
transactions identified by the Treasury and
the Service as tax avoidance transactions.
The second category includes transactions
that warrant further scrutiny because they
possess certain identified characteristics
that are common in corporate tax shelters.
The regulations require disclosure only
for large transactions that provide tax sav-
ings in excess of certain dollar thresholds
(the projected tax effect test). In addition,
the regulations contain exceptions to ensure
that normal business transactions are not
subject to disclosure. The fact that a trans-
action is reportable or not reportable under
these regulations shall not affect the legal
determination whether the tax benefits
claimed with respect to the transaction are
allowable.
The first category of reportable transac-
tions includes any transaction that is the
same as or substantially similar to one of
the specified types of tax avoidance trans-
actions that the IRS has identified by pub-
lished guidance as a listed transaction for
purposes of section 6011 and that is ex-
pected to reduce the taxpayer’s Federal in-
come tax liability by more than $1 million
in any single taxable year or by a total of
more than $2 million for any combination
of taxable years. However, a listed transac-
tion is not treated as a reportable transac-
tion if it has affected the taxpayer’s Federal
income tax liability as reported on any tax
return filed on or before February 28, 2000.
The second category of reportable
transactions includes transactions entered
into after February 28, 2000, that are ex-
pected to reduce a taxpayer’s Federal in-
come tax liability by more than $5 million
in any single taxable year or by a total of
more than $10 million for any combina-
tion of taxable years and that have at least
two of the following characteristics:
(A) The taxpayer has participated in the
transaction under conditions of confiden-
tiality (as defined in §301.6111–2T(c)).
(B) The taxpayer has obtained or been
provided with contractual protection
against the possibility that part or all of
the intended tax benefits from the transac-
tion will not be sustained, including, but
not limited to, recission rights, the right to
a full or partial refund of fees paid to any
person, fees that are contingent on the
taxpayer’s realization of tax benefits from
the transaction, insurance protection with
respect to the tax treatment of the transac-
tion, or a tax indemnity or similar agree-
ment (other than a customary indemnity
provided by a principal to the transaction
that did not participate in the promotion
of the transaction to the taxpayer).
(C) The taxpayer’s participation in the
transaction was promoted, solicited, or
recommended by one or more persons
who have received or are expected to re-
ceive fees or other consideration with an
aggregate value in excess of $100,000,
and such person or persons’ entitlement to
such fees or other consideration was con-
tingent on the taxpayer’s participation in
the transaction.
(D) The expected treatment of the
transaction for Federal income tax pur-
poses in any taxable year differs or is ex-
pected to differ by more than $5 million
from the treatment of the transaction for
purposes of determining book income as
taken into account on the schedule M-1
(or comparable schedule) on the tax-
payer’s Federal corporate income tax re-
turn for the same period.
(E) The transaction involves the partici-
pation of a person that the taxpayer knows
or has reason to know is in a Federal in-
come tax position that differs from that of
the taxpayer (such as a tax exempt entity or
a foreign person), and the taxpayer knows
or has reason to know that such difference
in tax position has permitted the transaction
to be structured on terms that are intended
to provide the taxpayer with more favor-
able Federal income tax treatment than it
could have obtained without the participa-
tion of such person (or another person in a
similar tax position).
(F) The expected characterization of
any significant aspect of the transaction
for Federal income tax purposes differs
from the expected characterization of
such aspect of the transaction for pur-
poses of taxation of any party to the trans-
action in another country.
However, a transaction that has at least
two of the foregoing characteristics is not
a reportable transaction if any of the fol-
lowing conditions is satisfied—
(A) The taxpayer has participated in the
transaction in the ordinary course of its
business in a form consistent with cus-
tomary commercial practice, and the tax-
payer reasonably determines that it would
have participated in the same transaction
on substantially the same terms irrespec-
tive of the expected Federal income tax
benefits;
(B) The taxpayer has participated in the
transaction in the ordinary course of its
business in a form consistent with cus-
tomary commercial practice, and the tax-
payer reasonably determines that there is
a long-standing and generally accepted
understanding that the expected Federal
income tax benefits from the transaction
(taking into account any combination of
intended tax consequences) are allowable
under the Code for substantially similar
transactions;
(C) The taxpayer reasonably deter-
mines that there is no reasonable basis
under Federal tax law for denial of any
significant portion of the expected Fed-
eral income tax benefits from the transac-
tion; or
(D) The transaction is identified in pub-
lished guidance as being excepted from
disclosure.
A transaction involving the acquisition,
disposition, or restructuring of a business,
including the acquisition, disposition, or
other change in the ownership or control
of an entity that is engaged in a business,
or a transaction involving a recapitaliza-
tion or an acquisition of capital for use in
the taxpayer’s business, shall be consid-
ered a transaction carried out in the ordi-
nary course of a taxpayer’s business.
III. Record Retention
The taxpayer must retain all documents
related to a transaction subject to disclosure
under this section until the expiration of the
statute of limitations for the first taxable
year for which a disclosure statement is
filed with its tax return. (This obligation is
in addition to any document retention re-
quirements that section 6001 generally im-
poses on the taxpayer.) Such documents
include, but are not limited to, the follow-
ing: all marketing materials related to the
transaction; all written analyses used in de-
cision-making related to the transaction; all
correspondence and agreements related to
the transaction between the taxpayer and
any promoter, advisor, lender, or other
March 13, 20007482000–11 I.R.B.

party to the reportable transaction; all docu-
ments discussing, referring to, or demon-
strating the tax benefits arising from the re-
portable transaction; and all documents, if
any, referring to the business purposes for
the reportable transaction.
IV. Effective Date
The temporary regulations apply to
Federal corporate income tax returns filed
after February 28, 2000.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assess-
ment is not required. It has also been de-
termined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions. It is hereby certified that the collec-
tion of information in these regulations
will not have a significant economic im-
pact on a substantial number of small enti-
ties. This certification is based upon the
fact that the persons responsible for filing
the statement required by these regulations
are principally large publicly traded cor-
porations, and the burden is not significant
as described earlier in the preamble.
Therefore, a Regulatory Flexibility Analy-
sis under the Regulatory Flexibility Act (5
U.S.C. chapter 6) is not required. Pur-
suant to section 7805(f) of the Code, these
temporary regulations will be submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on their impact on small business.
Drafting Information
The principal authors of these regula-
tions are Mary Beth Collins and Richard
Castanon, Office of Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated in
their development.
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 602
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6011–4T also issued under
26 U.S.C. 6001 and 6011(a). * * *
Par. 2. Section 1.6011–4T is added to
read as follows:
§1.6011–4T Requirement of statement dis-
closing participation in certain transac-
tions by corporate taxpayers (Tempo-
rary).
(a) In general. Every taxpayer that is
required to file a return for a taxable year
with respect to a tax imposed under sec-
tion 11 and that has participated, directly
or indirectly, in a reportable transaction
within the meaning of paragraph (b) of
this section must attach to its return for
the taxable year described in paragraph
(d) of this section a disclosure statement
in the form prescribed by paragraph (c) of
this section. For this purpose, a taxpayer
will have indirectly participated in a
transaction if its Federal income tax lia-
bility is affected by the transaction even if
it is not a direct party to the transaction
(e.g., it participates through a partnership
or through a controlled entity). A separate
disclosure statement is required for each
reportable transaction. The fact that a tax-
payer files a disclosure statement for a re-
portable transaction shall not affect the
legal determination whether the tax bene-
fits claimed with respect to the transaction
are allowable.
(b) Definition of reportable transac-
tion—(1) In general. A reportable trans-
action is a transaction that is described in
either paragraph (b)(2) or (3) of this sec-
tion and that meets the projected tax ef-
fect test in paragraph (b)(4) of this sec-
tion. The term transactionincludes all of
the factual elements necessary to support
the tax benefits that are expected to be
claimed with respect to any entity, plan,
or arrangement, and includes any series of
related steps carried out as part of a pre-
arranged plan and any series of substan-
tially similar transactions entered into in
the same taxable year.
(2) Listed transactions. A transaction
is described in this paragraph (b)(2) if the
transaction is the same as or substantially
similar to one of the types of transactions
that the Internal Revenue Service (IRS)
has determined to be a tax avoidance
transaction and identified by notice, regu-
lation, or other form of published guid-
ance as a listed transaction for purposes of
section 6011. However, a listed transac-
tion is not treated as a reportable transac-
tion if it has affected the taxpayer’s Fed-
eral income tax liability as reported on
any tax return filed on or before February
28, 2000. The fact that a transaction be-
comes a listed transaction does not imply
that the transaction was not otherwise a
reportable transaction prior thereto.
(3) Other reportable transactions—(i)
In general. Except as provided in para-
graph (b)(3)(ii) of this section, a transac-
tion is described in this paragraph (b)(3) if
it is entered into after February 28, 2000,
and has at least two of the following char-
acteristics:
(A) The taxpayer has participated in the
transaction under conditions of confiden-
tiality (as defined in §301.6111–2T(c)).
(B) The taxpayer has obtained or been
provided with contractual protection
against the possibility that part or all of
the intended tax benefits from the transac-
tion will not be sustained, including, but
not limited to, recission rights, the right to
a full or partial refund of fees paid to any
person, fees that are contingent on the
taxpayer’s realization of tax benefits from
the transaction, insurance protection with
respect to the tax treatment of the transac-
tion, or a tax indemnity or similar agree-
ment (other than a customary indemnity
provided by a principal to the transaction
that did not participate in the promotion
of the transaction to the taxpayer).
(C) The taxpayer’s participation in the
transaction was promoted, solicited, or
recommended by one or more persons
who have received or are expected to re-
ceive fees or other consideration with an
aggregate value in excess of $100,000,
and such person or persons’ entitlement to
such fees or other consideration was con-
tingent on the taxpayer’s participation in
the transaction.
(D) The expected treatment of the
transaction for Federal income tax pur-
poses in any taxable year differs or is ex-
pected to differ by more than $5 million
from the treatment of the transaction for
purposes of determining book income as
taken into account on the schedule M-1
(or comparable schedule) on the tax-
payer’s Federal corporate income tax re-
turn for the same period.
(E) The transaction involves the partic-
ipation of a person that the taxpayer
2000–11 I.R.B.749March 13, 2000

knows or has reason to know is in a Fed-
eral income tax position that differs from
that of the taxpayer (such as a tax exempt
entity or a foreign person), and the tax-
payer knows or has reason to know that
such difference in tax position has permit-
ted the transaction to be structured on
terms that are intended to provide the tax-
payer with more favorable Federal in-
come tax treatment than it could have ob-
tained without the participation of such
person (or another person in a similar tax
position).
(F) The expected characterization of
any significant aspect of the transaction
for Federal income tax purposes differs
from the expected characterization of
such aspect of the transaction for pur-
poses of taxation of any party to the trans-
action in another country.
(ii) Exceptions. A transaction is not a
reportable transaction under paragraph
(b)(3) of this section if paragraph
(b)(3)(ii)(A), (B), (C), or (D) of this sec-
tion is satisfied.
(A) The taxpayer has participated in the
transaction in the ordinary course of its
business in a form consistent with cus-
tomary commercial practice, and the tax-
payer reasonably determines that it would
have participated in the same transaction
on substantially the same terms irrespec-
tive of the expected Federal income tax
benefits.
(B) The taxpayer has participated in the
transaction in the ordinary course of its
business in a form consistent with cus-
tomary commercial practice, and the tax-
payer reasonably determines that there is
a long-standing and generally accepted
understanding that the expected Federal
income tax benefits from the transaction
(taking into account any combination of
intended tax consequences) are allowable
under the Internal Revenue Code (Code)
for substantially similar transactions.
(C) The taxpayer reasonably deter-
mines that there is no reasonable basis
under Federal tax law for denial of any
significant portion of the expected Fed-
eral income tax benefits from the transac-
tion. Such a determination must take into
account the entirety of the transaction and
any combination of tax consequences that
are expected to result from any compo-
nent steps of the transaction, must not be
based on any unreasonable or unrealistic
factual assumptions, and must take into
account all relevant aspects of Federal tax
law, including the statute and legislative
history, treaties, authoritative administra-
tive guidance, and judicial decisions that
establish principles of general application
in the tax law (e.g., Gregory v. Helvering,
293 U.S. 465 (1935)).
(D) The transaction is identified in pub-
lished guidance as being excepted from
disclosure under this section.
(iii) Ordinary course of business. For
purposes of paragraphs (b)(3)(ii)(A) and
(B) of this section, a transaction involving
the acquisition, disposition, or restructur-
ing of a business, including the acquisi-
tion, disposition, or other change in the
ownership or control of an entity that is
engaged in a business, or a transaction in-
volving a recapitalization or an acquisi-
tion of capital for use in the taxpayer’s
business, shall be considered a transaction
carried out in the ordinary course of a tax-
payer’s business.
(4) Projected tax effect—(i) In general.
A transaction described in paragraph
(b)(2) of this section meets the projected
tax effect test if, at the time the taxpayer
enters into the transaction or at any time
thereafter, the taxpayer reasonably esti-
mates that the transaction will reduce the
taxpayer’s Federal income tax liability by
more than $1 million in any single taxable
year or by a total of more than $2 million
for any combination of taxable years in
which the transaction is expected to have
the effect of reducing the taxpayer’s Fed-
eral income tax liability. A transaction
described in paragraph (b)(3) of this sec-
tion meets the projected tax effect test if,
at the time the taxpayer enters into the
transaction or at any time thereafter, the
taxpayer reasonably estimates that the
transaction will reduce the taxpayer’s
Federal income tax liability by more than
$5 million in any single taxable year or by
a total of more than $10 million for any
combination of taxable years in which the
transaction is expected to have the effect
of reducing the taxpayer’s Federal income
tax liability. For purposes of this para-
graph (b)(4), a transaction will be treated
as reducing a taxpayer’s Federal income
tax liability for a taxable year if, and to
the extent that, disallowance of the tax
treatment claimed or expected to be
claimed would result in an increase in the
taxpayer’s Federal income tax liability for
that year. These dollar thresholds may be
adjusted pursuant to forms prescribed for
reporting under this section and the in-
structions to such forms.
(ii) Estimation of projected tax effect.
A taxpayer’s estimate of the effect of a
transaction on its Federal income tax lia-
bility shall take into account all projected
Federal income tax consequences of the
transaction, including all deductions, ex-
clusions from gross income, nonrecogni-
tion of gain, tax credits, adjustments (or
the absence of adjustments) to the basis of
property, and any other tax consequences
that may reduce the taxpayer’s Federal in-
come tax liability by affecting the timing,
character, or source of any item of in-
come, gain, deduction, loss, or credit.
The estimate shall not take into account
the potential Federal income tax effect of
any other transaction or transactions that
the taxpayer might have entered into if the
taxpayer had not entered into the transac-
tion in question. Gross income may not
be taken into account if the elements of
the transaction that result in the creation
of the gross income are not necessary to
achieve the intended tax results of the
transaction, whether or not these elements
are an integral part of the transaction. For
example, gross income may not be taken
into account to the extent that it would
have been reasonably possible for the tax-
payer to have participated in the transac-
tion in a manner that would have been ex-
pected to produce less gross income
without a commensurate effect on the
other tax consequences of the transaction.
In addition, gain on property that the tax-
payer acquired independent of its partici-
pation in the transaction may not be taken
into account.
(5) Examples. The following examples
illustrate the application of paragraph (b)
of this section. Assume, for purposes of
these examples, that the transactions are
not the same as or substantially similar to
any of the types of transactions that the
IRS has identified as listed transactions
under section 6011 and, thus, are not de-
scribed in paragraph (b)(2) of this section.
The examples are as follows:
Example 1. In March of 2000, C, a domestic cor-
poration, invests $100 million to purchase certain fi-
nancial instruments the terms of which have been
structured to enable the holder to claim a deductible
tax loss upon the disposition of one or more of the
instruments a short time after acquisition while de-
ferring gain on the retained instruments. C pur-
chased the instruments on the recommendation of X,
which is expected to receive direct or indirect com-
March 13, 20007502000–11 I.R.B.

pensation in excess of $100,000 contingent on C’s
purchase. C disposes of certain of the financial in-
struments in November of 2000, and reports a loss
from the disposition of those financial instruments
on its 2000 Federal corporate income tax return
which reduces its reported Federal income tax liabil-
ity by more than $5 million. That loss is not re-
flected on C’s income statement for purposes of de-
termining book income as taken into account on the
schedule M-1 on C’s Federal corporate income tax
return. Further, C is unable to reasonably determine
that it would have entered into the transaction irre-
spective of the Federal income tax benefits, or that
the transaction is a customary form of transaction
giving rise to tax consequences for which there is a
long-standing and generally accepted understanding
that such tax consequences are allowable under the
Code for similar transactions, or that the Commis-
sioner would have no reasonable basis to deny the
claimed loss. The transaction involving C’s pur-
chase and disposition of the financial instruments
has the characteristics described in paragraphs
(b)(3)(i)(C) and (D) of this section. None of the ex-
ceptions in paragraph (b)(3)(ii) of this section ap-
plies. Therefore, the transaction involving C’s pur-
chase and disposition of the financial instruments is
a reportable transaction because it is described in
paragraph (b)(3) of this section.
Example 2. In the year 2001, D, a domestic cor-
poration, completes construction of an office build-
ing to be used in its business. After completion of
the building but before D files its tax return for the
year 2001, it is approached by Y, a professional ser-
vices organization, which advises D that Y has de-
veloped a set of programs that will enable D to max-
imize its depreciation deductions with respect to the
building and the related furniture and fixtures. Y al-
lows D to review Y’s programs subject to D’s agree-
ment that it will not use any portion of the programs
in establishing its depreciation accounts for Federal
tax purposes unless it pays Y a fee of $150,000. In
addition, D makes a commitment to Y that it will not
divulge any information relating to the programs to
any person, whether or not D decides to use the pro-
grams. D agrees to use Y’s programs for purposes
of computing its depreciation allowances for 2001
and later taxable years. D expects its use of the pro-
grams to reduce its Federal income tax liability by
more than $10 million over the life of the building.
However, D reasonably determines that it would
have constructed and owned the office building in
the same manner irrespective of the enhanced depre-
ciation that it expects to derive from the use of Y’s
programs. Therefore, regardless of whether D’s de-
preciation deductions on the building may be subject
to disallowance, the transaction encompassing the
construction of the building and the use of Y’s pro-
grams is not a reportable transaction by reason of the
exception under paragraph (b)(3)(ii)(A) of this sec-
tion.
Example 3. E is a domestic corporation, which is
a calendar year taxpayer. E is engaged in the leasing
business. In 2001, E enters into a large number of
substantially similar arrangements described in
paragraph (b)(3)(i) of this section under which it ac-
quires and leases tangible personal property to U.S.
persons who use such property in their businesses.
E treats the leases as leases for Federal income tax
purposes and as loans for financial accounting pur-
poses. During the first three taxable years in which
the leases are in effect, E reasonably expects that its
reported taxable income will be more than $30 mil-
lion lower than it would be if the leases were treated
as loans for Federal income tax purposes, giving rise
to a total expected reduction of E’s Federal income
tax liability for those years in excess of $10 million.
E cannot conclude that it would have entered into
the leases on substantially the same terms irrespec-
tive of the expected Federal income tax benefits, nor
can it conclude that the Commissioner would have
no reasonable basis to deny its tax treatment of the
leases. However, E does reasonably determine that
the terms of the leases are consistent with customary
commercial form in the leasing industry, and that
there is a long-standing and generally accepted un-
derstanding that the combination of Federal income
tax consequences it is claiming with respect to the
leases are allowable under the Code for similar
transactions. The substantially similar leases would
be treated for purposes of this section as a single
transaction that would satisfy the projected tax effect
test described in paragraph (b)(4) of this section.
However, the leases would not be a reportable trans-
action by reason of the exception under paragraph
(b)(3)(ii)(B) of this section.
(c) Form and content of disclosure
statement.(1) The disclosure statement for
each reportable transaction must include
the information required by paragraph
(c)(1)(i) through (c)(1)(vi) of this section
and shall be presented in a format (prefer-
ably no longer than one page) similar to
that shown in the Examplein paragraph
(c)(2) of this section or on such form as
may be prescribed for use under this sec-
tion.
(i) The name, if any, by which the
transaction is known or commonly re-
ferred to by the taxpayer; if no name ex-
ists, provide a short-hand designation of
this transaction to distinguish it from
other reportable transactions in which the
taxpayer may have participated (or may
participate in the future).
(ii) A statement indicating whether, to
the best knowledge of the taxpayer, the
transaction has been registered as a tax
shelter under section 6111. If the transac-
tion has been registered as a tax shelter
under section 6111, indicate whether
Form 8271, “Investor Reporting of Tax
Shelter Registration Number”, has been
filed with the taxpayer’s return and pro-
vide the registration number, if any, that
has been assigned to the tax shelter.
(iii) A brief description of the principal
elements of the transaction that give rise
to the expected tax benefits.
(iv) A brief description of the expected
tax benefits of the transaction (e.g., loss
deductions, interest deductions, rental de-
ductions, foreign tax credits, etc.).
(v) An identification of each taxable
year (including prior taxable years) for
which the transaction is expected to have
the effect of reducing the taxpayer’s Fed-
eral income tax liability and an estimate
(which may be rounded to the nearest $1
million) of the amount by which the trans-
action is expected to reduce the tax-
payer’s Federal income tax liability for
each such taxable year.
(vi) The names and addresses of any
parties who promoted, solicited, or rec-
ommended the taxpayer’s participation in
the transaction and who had a financial
interest, including the receipt of fees, in
the taxpayer’s decision to participate.
(2) Example. The following example illustrates
the application of paragraph (c) of this section: In
January of 1999, X, a domestic corporation which is
a calendar year taxpayer, entered into an arrange-
ment under which it purported to lease a building
owned and occupied by the government of a munici-
pality located in foreign country W and lease the
building back to the municipal government. X de-
termines that the transaction is a reportable transac-
tion described in paragraph (b)(1) of this section be-
cause it is described in paragraph (b)(2) of this
section and satisfies the projected tax effect test in
paragraph (b)(4) of this section. As of February 28,
2000, X had not filed its 1999 Federal corporate in-
come tax return. The following form of disclosure
statement would satisfy the requirements described
in paragraph (c)(1) of this section.
2000–11 I.R.B.751March 13, 2000

(d) Time of providing disclosure—(1) In
general. The disclosure statement for a re-
portable transaction shall be attached to the
taxpayer’s Federal corporate income tax re-
turn for each taxable year for which the tax-
payer’s Federal income tax liability is af-
fected by its participation in the transaction.
In addition, at the same time that the disclo-
sure statement is first attached to the tax-
payer’s Federal income tax return, a copy
of that disclosure statement must be sent to:
Internal Revenue Service LM:PF, Large &
Mid-Size Business Division, 1111 Consti-
tution Ave., N.W., Washington, DC 20224.
If a transaction becomes a reportable trans-
action on or after the date the taxpayer has
filed its return for the first taxable year for
which the transaction affected the tax-
payer’s Federal income tax liability (e.g.,
there is a change in facts affecting the ex-
pected Federal income tax effect of the
transaction, or the transaction subsequently
becomes one identified in published guid-
ance as a listed transaction described in
(b)(2) of this section), the disclosure state-
ment shall be filed as an attachment to the
taxpayer’s Federal corporate income tax re-
turn next filed after the date the transaction
becomes a reportable transaction. If a dis-
closure statement is required as an attach-
ment to a Federal corporate income tax re-
turn that is filed earlier than 180 days after
February 28, 2000, the taxpayer may either
attach the disclosure statement to the re-
turn, or file the disclosure statement as an
amendment to the return no later than 180
days after February 28, 2000.
(2) Example. The following example illustrates the
application of this paragraph (d): In December of
2000, F, a domestic corporation which is a calendar
year taxpayer, enters into a transaction described in
paragraph (b)(3) of this section but not described in
paragraph (b)(2) of this section. At the time F enters
into the transaction and thereafter, F reasonably esti-
mates that the transaction will reduce F’s Federal in-
come tax liability by $2 million in any single taxable
year and by a total of $8 million for any combination
of taxable years in which the transaction is expected to
have the effect of reducing F’s Federal income tax lia-
bility. Consequently, the transaction does not meet the
projected tax effect test described in paragraph (b)(4)
of this section for transactions described in paragraph
(b)(3) of this section. On March 1, 2002, the IRS pub-
lishes a notice identifying the transaction as a listed
transaction described in paragraph (b)(2) of this sec-
tion. Thus, upon issuance of the notice, the transaction
becomes a transaction described in paragraph (b)(2) of
this section. As a result of the lower dollar thresholds
of the projected tax effect test with respect to transac-
tions described in (b)(2) of this section, the transaction
meets the projected tax effect test in paragraph (b)(4)
of this section. Consequently, the transaction becomes
a reportable transaction described in paragraph (b)(1)
of this section, and F is required to file a disclosure
statement meeting the requirements of paragraph
(c)(1) of this section for the transaction as an attach-
ment to F’s next filed Federal corporate income tax re-
turn. If F’s 2001 return has not been filed on or before
the date the Service identifies the transaction as a
listed transaction, the disclosure statement must be at-
tached to F’s 2001 return.
(e) Retention of documents. The taxpayer
must retain all documents related to a trans-
action subject to disclosure under this sec-
tion until the expiration of the statute of lim-
itations applicable to the first taxable year
for which disclosure of the transaction was
made in accordance with the requirements
of this section. (This document retention re-
quirement is in addition to any document re-
tention requirements that section 6001 gen-
erally imposes on the taxpayer.) Such
documents include, but are not limited to,
the following: all marketing materials re-
lated to the transaction; all written analyses
used in decision-making related to the trans-
action; all correspondence and agreements
related to the transaction between the tax-
payer and any promoter, advisor, lender, or
other party to the reportable transaction; all
documents discussing, referring to, or
demonstrating the tax benefits arising from
the reportable transaction; and all docu-
ments, if any, referring to the business pur-
poses for the reportable transaction.
(f) Affiliated groups. For purposes of
this section, an affiliated group of corpora-
tions that joins in the filing of a consoli-
dated return under section 1501 shall be
considered a single taxpayer.
(g)Effective date. This section applies to
Federal corporate income tax returns filed
after February 28, 2000. However, para-
graph (e) of this section applies to docu-
ments and other records that the taxpayer
acquires, prepares, or has in its possession
on or after February 28, 2000.Par.
3. In §602.101, paragraph (b) is amended
by adding an entry for §1.6011–4T to read
in part as follows:
§602.101 OMB Control numbers.
* * * * *
(b) * * *
Charles O. Rossotti,
Commissioner of Internal Revenue.
Approved February 23, 2000.
Jonathan Talisman,
Acting Assistant Secretary
of the Treasury.
(Filed by the office of the Federal Register on Febru-
ary 28, 2000, 8:45 a.m., and published in the issue of
the Federal Register for March 2, 2000, 65 F.R.
11205)
March 13, 20007522000–11 I.R.B.
DISCLOSURE STATEMENT FOR REPORTABLE TRANSACTION
Corporation X(EIN)
(address)
1. Identification of transaction: LILO–Country W
2. Registration status under section 6111: Not registered
3. Description of transaction: We leased a building from a municipality in W. We made an advance payment of rent of $89 million. The lease term is 34
years. The foreign municipality subleased the asset back from us for a term of 20 years. The foreign municipality has the option, at the end of the sublease
term, to buy out our interest for $50 million. Our advance lease payment has been financed with a bank loan of $60 million. The foreign municipality placed
$75 million of the advance rental payment in special accounts to satisfy the sublease and buyout obligations.
4. Principal tax benefits: Deductions for rental and interest payments in excess of income from leaseback rental payments
5. Estimates of expected reduction of Federal income tax liability for affected taxable years: 1999-2002, $5 million per year; 2003-2013, $4 million per
year; and 2014-2017, $3 million per year.
6. Promoters:Financial Institution Y
(address)
(telephone number)
Professional Service Firm Z
(address)
(telephone number)

Section 6111.— Registration of
Tax Shelters
26 CFR 301.6111–2T: Confidential corporate tax
shelters (Temporary).
T.D. 8876
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 301 and 602
Corporate Tax Shelter
Registration
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains
temporary regulations requiring the regis-
tration of confidential corporate tax shel-
ters pursuant to section 6111(d) as
amended by section 1028(a) of the Tax-
payer Relief Act of 1997 (the Act). The
temporary regulations affect persons re-
sponsible for registering confidential cor-
porate tax shelters. The text of these tem-
porary regulations also serves as the text
of the proposed regulations set forth in the
notice of proposed rulemaking on this
subject in REG–110311–98, page 767.
DATES: Effective date. These temporary
regulations are effective February 28, 2000.
Applicability date. For dates of applic-
ability, see §301.6111–2T(h) of these reg-
ulations.
FOR FURTHER INFORMATION CON-
TACT: Richard Castanon, (202) 622-
3080, or Mary Beth Collins, (202) 622-
3070; concerning international issues
Rebecca Rosenberg, (202) 622-3870 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
These regulations are being issued
without prior notice and public procedure
pursuant to the Administrative Procedure
Act (5 U.S.C. 553). For this reason, the
collections of information contained in
these regulations have been reviewed and,
pending receipt and evaluation of public
comments, approved by the Office of
Management and Budget under control
number 1545-1687. Responses to these
collections of information are mandatory.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
OMB control number.
For further information concerning
these collections of information, and
where to submit comments on the collec-
tions of information and the accuracy of
the estimated burden, and suggestions for
reducing this burden, please refer to the
preamble to the cross-referencing notice
of proposed rulemaking published in the
Proposed Rules section of this issue of the
Federal Register.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
In enacting section 6111(d), Congress
added confidential corporate tax shelters
as a type of tax shelter that must be regis-
tered under section 6111. Congress in-
tended the provision to improve tax com-
pliance by giving the Treasury
Department earlier notification of transac-
tions that may not comport with Federal
tax law and by discouraging taxpayers
from entering into questionable transac-
tions. See H.R. R
EP. NO. 148, 105th
Cong., 1st Sess. 469 (1997); S. REP. NO.
33, 105th Cong., 1st Sess. 148 (1997).
Section 1028(e)(1) of the Act provides
that the registration requirements of sec-
tion 6111 and the penalty provisions of
section 6707 for failing to comply with
the registration requirements apply to
confidential corporate tax shelters in
which interests are offered to potential
participants after the IRS issues guidance
on the registration requirements. These
regulations provide the guidance neces-
sary to activate the registration require-
ments of section 6111 and the penalty
provisions of section 6707 for confiden-
tial corporate tax shelters.
These temporary regulations relate to
disclosure obligations for tax shelter orga-
nizers and promoters under section 6111.
Although the terms of section
6111(d)(1)(A), which are part of the defi-
nition of a confidential corporate tax shel-
ter, are similar to the definition of tax
shelter under section 6662(d)(2)(C)(iii),
these temporary regulations are not in-
tended to define a tax shelter for purposes
of section 6662, which relates to the im-
position of penalties.
Explanation of Provisions
I.In General
Under section 6111(d)(1) and the tem-
porary regulations, a confidential corpo-
rate tax shelter is any entity, plan,
arrangement, or transaction that satisfies
the following three requirements: (1) a
significant purpose of the structure of the
transaction is the avoidance or evasion of
Federal income tax for a direct or an indi-
rect corporate participant; (2) the transac-
tion is offered to any potential participant
under conditions of confidentiality; and
(3) the tax shelter promoters may receive
fees in excess of $100,000 in the aggre-
gate.
II.Significant Purpose of Tax Avoidance
or Tax Evasion
Under the temporary regulations, there
are three categories of transactions for
2000–11 I.R.B.753March 13, 2000
CFR Part or Section WhereCurrent OMB
Identified and DescribedControl No.
* * * * *
1.6011–4T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545–1685
* * * * *

which the avoidance or evasion of Federal
income tax is considered a significant
purpose of the structure of the transaction.
First, the avoidance or evasion of Fed-
eral income tax is considered a significant
purpose of the structure of a transaction if
the transaction is the same as or substan-
tially similar to one of the specified types
of transactions that the IRS has deter-
mined to be a tax avoidance transaction
and identified by notice, regulation, or
other form of published guidance as a
listed transaction for purposes of section
6111.
Second, the avoidance or evasion of
Federal income tax is generally consid-
ered a significant purpose of the structure
of a transaction if the present value of the
participant’s reasonably expected pre-tax
profit (after taking into account foreign
taxes as expenses and transaction costs)
from the transaction is insignificant rela-
tive to the present value of the partici-
pant’s expected net Federal income tax
savings from the transaction. However, if
the substance of the transaction is the bor-
rowing of money or the acquisition of fi-
nancial capital by a corporate participant,
the transaction falls within this second
category if the present value of the Fed-
eral income tax deductions of the tax-
payer to whom the loan or financial capi-
tal is provided significantly exceeds the
present value of the pre-tax return of the
person providing the loan or financial
capital.
Third, the avoidance or evasion of Fed-
eral income tax is generally considered to
be a significant purpose of the structure of
a transaction if the transaction has been
structured to produce Federal income tax
benefits that constitute an important part
of the intended results of the transaction
and the tax shelter promoter (or other per-
son who would be responsible for regis-
tration under this section) reasonably ex-
pects the transaction to be presented (in
the same or substantially similar form) to
more than one potential participant.
However, a transaction does not come
within this third category if the promoter
reasonably determines that the potential
participant is expected to participate in
the transaction in the ordinary course of
its business in a form consistent with cus-
tomary commercial practice, and the pro-
moter reasonably determines that there is
a long-standing and generally accepted
understanding that the expected Federal
income tax benefits from the transaction
(taking into account any combination of
intended tax consequences) are allowable
under the Code for substantially similar
transactions.
Except for listed transactions, the
avoidance or evasion of Federal income
tax will not be considered a significant
purpose of the structure of a transaction if
the tax shelter promoter (or other person
who would be responsible for registration
under this section) reasonably determines
that there is no reasonable basis under
Federal tax law for denial of any signifi-
cant portion of the expected Federal in-
come tax benefits from the transaction.
The IRS may make a determination, by
published guidance, individual ruling, or
otherwise, that a transaction is not re-
quired to be registered under the tempo-
rary regulations. If a tax shelter promoter
(or other person who would be responsi-
ble for registration under this section) is
uncertain whether a transaction is prop-
erly classified as a confidential corporate
tax shelter or is otherwise uncertain
whether registration is required under this
section, that person may, on or before the
date that registration would otherwise be
required under this section, submit a re-
quest to the IRS for a ruling as to whether
the transaction is subject to the registra-
tion requirements of this section. If the
request fully discloses all relevant facts
relating to the transaction, that person’s
potential obligation to register the trans-
action will be suspended during the pe-
riod that the ruling request is pending and,
if the Service subsequently concludes that
the transaction is a confidential corporate
tax shelter subject to registration under
this section, until the sixtieth day after the
issuance of the ruling (or, if the request is
withdrawn, sixty days from the date that
the request is withdrawn). In the alterna-
tive, that person may register the transac-
tion in accordance with the requirements
of this section and append a statement to
the Form 8264, “Application for Registra-
tion of a Tax Shelter,” which states that
the person is uncertain whether the trans-
action is required to be registered as a
confidential corporate tax shelter, and that
the Form 8264 is being filed on a protec-
tive basis.
III.Conditions of Confidentiality
Section 6111(d)(2) describes when an
offer is made under conditions of confi-
dentiality. The determination of whether
an offer is made under conditions of con-
fidentiality is based on all the facts and
circumstances surrounding the offer, in-
cluding prior conduct of the parties. If an
offeree’s disclosure of the structure or tax
aspects of the transaction is limited in any
way by an express or implied understand-
ing or agreement with or for the benefit of
a tax shelter promoter, an offer is consid-
ered made under conditions of confiden-
tiality, whether or not such understanding
or agreement is legally binding. An offer
will also be considered made under condi-
tions of confidentiality in the absence of
any such understanding or agreement if
any tax shelter promoter knows or has
reason to know the transaction is pro-
tected from disclosure or use in any other
manner, such as where the transaction is
claimed to be proprietary to the tax shelter
promoter or any party other than the of-
feree. An offeree’s privilege to maintain
the confidentiality of a communication re-
lating to a tax shelter in which the tax-
payer might participate or has agreed to
participate, including an offeree’s confi-
dential communication with the offeree’s
attorney, is not itself a condition of confi-
dentiality.
The temporary regulations provide
that, unless facts and circumstances
clearly indicate otherwise, an offer is not
considered made under conditions of con-
fidentiality if the tax shelter promoter en-
ters into a written agreement with each
person who participates or discusses par-
ticipation in the transaction and such
agreement expressly authorizes such per-
sons to disclose every aspect of the trans-
action to any and all persons, without lim-
itation of any kind.
IV. Fees
The third requirement that must be sat-
isfied for a transaction to be treated as a
confidential corporate tax shelter is that
the tax shelter promoters, whether or not
related, may receive fees in excess of
$100,000 in the aggregate. In determin-
ing whether the tax shelter promoters may
receive fees in excess of $100,000, all the
facts and circumstances surrounding the
transaction are considered. For this pur-
pose, all consideration that may be re-
ceived by the tax shelter promoters is
March 13, 20007542000–11 I.R.B.

taken into account, including contingent
fees, fees in the form of equity interests,
and fees the promoters may receive for
other transactions as consideration for
promoting the tax shelter.
For example, if a tax shelter promoter
may receive a fee for arranging a transac-
tion that is a confidential corporate tax
shelter and/or a separate fee for another
transaction that is not a confidential cor-
porate tax shelter, part or all of the fee
paid with respect to the other transaction
may be treated as a fee paid with respect
to the confidential corporate tax shelter if
the facts and circumstances indicate that
the fee paid for the other transaction is in
consideration for the confidential corpo-
rate tax shelter. For purposes of deter-
mining whether the tax shelter promoters
may receive fees in excess of $100,000,
the fees from all substantially similar
transactions are considered part of the
same tax shelter and must be aggregated.
V. Registration Requirements
To register a confidential corporate tax
shelter, the person responsible for regis-
tering the tax shelter must file Form 8264,
“Application for Registration of a Tax
Shelter.” (Form 8264 is also used to reg-
ister tax shelters defined in section
6111(c).) The exemptions from the regis-
tration requirements contained in the in-
structions to the current Form 8264 apply
only to tax shelters defined in section
6111(c). Form 8264 will be revised and
will include specific requirements and in-
structions for registering confidential cor-
porate tax shelters. Until that time, per-
sons responsible for registering
confidential corporate tax shelters should
follow the registration procedures out-
lined in these regulations.
The temporary regulations provide that
the person registering a confidential cor-
porate tax shelter must provide a detailed
description of the tax shelter, including
the structure of the tax shelter and the tax
benefits. Any written materials presented
in connection with an offer to participate
in the shelter are required to be submitted
with the registration form.
Consistent with the registration re-
quirements for tax shelters defined in sec-
tion 6111(c), the temporary regulations
provide that any transactions involving
similar business assets or similar plans or
arrangements that are offered to corporate
taxpayers by the same person or by re-
lated persons are aggregated and treated
as a single tax shelter. However, in con-
trast with the registration requirements
applicable to tax shelters defined in sec-
tion 6111(c), the temporary regulations
allow the tax shelter promoter to file a
single Form 8264 with respect to any such
aggregated tax shelter, provided an
amended Form 8264 is filed to reflect any
material changes and to include any addi-
tional or revised written materials pre-
sented in connection with an offer to par-
ticipate in the shelter. Furthermore, the
temporary regulations require all transac-
tions that are part of the same tax shelter
and that are to be carried out by the same
corporate participant (or one or more
other members of the same affiliated
group within the meaning of section
1504) to be registered on the same Form
8264.
The temporary regulations provide that
in cases in which an attorney or federally
authorized tax practitioner acts as a tax
shelter promoter with respect to a client’s
participation in a confidential corporate
tax shelter and believes that information
which would otherwise be required to be
disclosed on Form 8264 is protected by
the common law attorney-client privilege
or the confidentiality privilege under sec-
tion 7525(a), such promoter may omit the
information believed to be privileged
from Form 8264 if the promoter attaches
a statement to the Form 8264 as described
in these temporary regulations.
Section 6111(a)(1) requires a tax shel-
ter to be registered not later than the day
on which the first offering for sale of in-
terests in such shelter occurs. Section
6111(d)(4) provides that an offer to par-
ticipate in a confidential corporate tax
shelter shall be treated as an offer for sale.
Registration under these temporary
regulations will be limited to confidential
corporate tax shelters that are offered for
sale after February 28, 2000. If interests
in a confidential corporate tax shelter
were first offered for sale on or before
February 28, 2000, the first offer for sale
of interests in the shelter that occurs after
February 28, 2000, shall be considered
the first offer for sale under this section.
The temporary regulations provide that
the IRS will consider a registration as
timely made for a confidential corporate
tax shelter in which interests are offered
for sale after February 28, 2000, if the
confidential corporate tax shelter is regis-
tered no later than August 26, 2000.
If a transaction becomes a confidential
corporate tax shelter (e.g., because of a
change in the law or factual circum-
stances, or because the transaction be-
comes a listed transaction) subsequent to
the first offering for sale after February
28, 2000, and the transaction was not pre-
viously required to be registered as a con-
fidential corporate tax shelter under this
section, the transaction must be registered
under this section if interests are offered
for sale after the transaction becomes a
confidential corporate tax shelter. The
transaction must be registered by the later
of the next offering for sale of interests in
the shelter or August 26, 2000. However,
because transactions identified as listed
transactions are generally considered to
have been structured for a significant tax
avoidance purpose, such transactions or-
dinarily will have been subject to registra-
tion under this section before becoming
listed transactions.
The temporary regulations provide that
if an interest in a confidential corporate
tax shelter is first offered for sale after
February 28, 2000, and that shelter is also
a tax shelter under section 6111(c), the
person responsible for registering the
shelter may either (1) complete and file
Form 8264, including the information re-
quired by these temporary regulations for
confidential corporate tax shelters, not
later than the day on which an interest in
the shelter is first offered for sale after
February 28, 2000, or (2) complete and
file Form 8264 for the section 6111(c) tax
shelter not later than the day on which an
interest in the tax shelter is first offered
for sale under section 6111(a) and then
file an amended Form 8264 with the in-
formation required by these temporary
regulations not later than August 26,
2000.
VI.Tax Shelter Promoter and Person
Required to Register
The temporary regulations provide that
the term “tax shelter promoter” as de-
scribed in section 6111(d)(2) includes a
tax shelter organizer under section
6111(e)(1) and §301.6111–1T(Q&A-26
through Q&A-32) and any other person
who participates in the organization, man-
agement or sale of a tax shelter (other
2000–11 I.R.B.755March 13, 2000

than a person who merely performs ser-
vices of the kind described in Q&A-33 of
§301.6111–1T) or any person related
(within the meaning of section 267 or
707) to such tax shelter organizer or such
other person.
In addition to the registration rules in
section 6111, the rules in
§301.6111–1T(Q&A-34 through Q&A-
39) apply for determining who must reg-
ister a confidential corporate tax shelter.
The temporary regulations specify that,
if all of the tax shelter promoters of a con-
fidential corporate tax shelter are foreign
persons and none of such promoters regis-
ters the shelter, any person who discusses
participation in the shelter must register
the shelter under section 6111(a). Pur-
suant to the authority in section
6111(f)(4), under limited circumstances,
the temporary regulations apply to foreign
as well as United States persons. For ex-
ample, a foreign corporation that partici-
pates in a tax shelter with a significant
purpose of reducing its United States
taxes would be required to register the tax
shelter if there were no U.S. promoters
and the other requirements of the tempo-
rary regulations were satisfied.
Under the temporary regulations, if all
the tax shelter promoters of a confidential
corporate tax shelter are foreign persons,
any person who discusses participation in
the confidential corporate tax shelter with
a tax shelter promoter must register the
shelter within 90 days of beginning such
discussions unless one or more of the fol-
lowing occurs: (1) the person does not
participate in the shelter and notifies the
promoter in writing, within the 90-day pe-
riod, that the person will not participate;
or (2) within the 90-day period, the per-
son obtains and reasonably relies on both
a written statement from one of the tax
shelter promoters that such promoter has
registered the tax shelter under this sec-
tion and a copy of the registration.
To prevent avoidance of the purposes
of section 6111(d)(3), the temporary regu-
lations treat any person that participates in
a shelter as having discussed that partici-
pation. Such discussion will be treated as
occurring on the date of the agreement to
participate or, if earlier, any other date the
person is treated as having discussed par-
ticipation under any other provision of
these regulations. Thus, the participant is
treated as having discussed participation
in the shelter even if the agreement to par-
ticipate is made without direct discussions
by the participant. This might occur, for
example, if participation is agreed to
through an intermediary acting on the par-
ticipant’s behalf.
The temporary regulations also state
that a person (first person) will be treated
as participating indirectly in (and there-
fore as discussing) a tax shelter if a for-
eign person in which the first person has
at least a 10 percent interest participates
in the shelter with a significant purpose of
avoiding or evading the first person’s
Federal income tax. For example, if a for-
eign corporation participates in a confi-
dential corporate tax shelter with a signif-
icant purpose of reducing its 10 percent
corporate shareholder’s Federal income
taxes, the temporary regulations would
require the shareholder to register the tax
shelter if all promoters are foreign.
For purposes of the registration re-
quirements under section 6111(d)(3), it is
presumed that the tax shelter promoters
may receive fees in excess of $100,000 in
the aggregate unless the person who
would be responsible for registering the
tax shelter can show otherwise.
VII. Investor List Requirement of Section
6112
Any person who organizes or sells an
interest in a confidential corporate tax
shelter must maintain a list of persons
who were sold an interest in the tax shel-
ter and such other information as required
by section 6112. See §301.6112–1T.
Amendments to the temporary regulations
under section 6112 have been published
concurrently with the temporary regula-
tions under section 6111(d). Among other
things, the amended temporary regula-
tions under section 6112 require lists to be
maintained with respect to transactions
for which the avoidance or evasion of
Federal income tax is considered to be a
significant purpose of the structure of the
transaction, as determined in these tempo-
rary regulations under section
6111(d)(1)(A), whether or not the transac-
tions are offered under conditions of con-
fidentiality.
VIII. Effective Date
The regulations apply to confidential
corporate tax shelters in which any interests
are offered for sale after February 28, 2000.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assess-
ment is not required. It has also been de-
termined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions. It is hereby certified that the collec-
tion of information in these regulations
will not have a significant economic im-
pact on a substantial number of small en-
tities. This certification is based upon the
fact that the persons responsible for pro-
moting and registering the transactions
described in these regulations are princi-
pally large publicly traded corporations,
and the burden is not significant as de-
scribed earlier in the preamble. There-
fore, a Regulatory Flexibility Analysis
under the Regulatory Flexibility Act (5
U.S.C. chapter 6) is not required. Pur-
suant to section 7805(f) of the Internal
Revenue Code, these temporary regula-
tions will be submitted to the Chief Coun-
sel for Advocacy of the Small Business
Administration for comment on their im-
pact on small business.
Drafting Information
The principal authors of these regula-
tions are Mary Beth Collins and Richard
Castanon, Office of Chief Counsel
(Passthroughs and Special Industries) and
Rebecca Rosenberg, Office of Chief
Counsel (International). However, other
personnel from the IRS and Treasury De-
partment participated in their develop-
ment.
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 301 and 602
are amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 is amended by adding an entry in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6111–2T also issued under
26 U.S.C. 6111(f)(4). * * *
Par. 2. Section 301.6111–2T is added to
read as follows:
March 13, 20007562000–11 I.R.B.

§301.6111–2T Confidential corporate tax
shelters (Temporary).
(a) In general—(1) Under section
6111(d) and this section, a confidential
corporate tax shelter is treated as a tax
shelter subject to the requirements of sec-
tions 6111(a) and (b).
(2) A confidential corporate tax shelter
is any transaction—
(i) A significant purpose of the struc-
ture of which is the avoidance or evasion
of Federal income tax, as described in
paragraph (b) of this section, for a direct
or indirect corporate participant;
(ii) That is offered to any potential par-
ticipant under conditions of confidential-
ity, as described in paragraph (c) of this
section; and
(iii) For which the tax shelter promot-
ers may receive fees in excess of
$100,000 in the aggregate, as described in
paragraph (d) of this section.
(3) For purposes of this section, refer-
ences to the term transactioninclude all
of the factual elements necessary to sup-
port the tax benefits that are expected to
be claimed with respect to any entity,
plan, or arrangement, including any series
of related steps carried out as part of a
prearranged plan.
(4) A transaction described in para-
graph (b) of this section is for a direct or
an indirect corporate participant if it is ex-
pected to provide Federal income tax ben-
efits to any corporation (U.S. or foreign)
whether or not that corporation partici-
pates directly in the transaction.
(b) Transactions structured for avoid-
ance or evasion of Federal income tax—
(1) In general. The avoidance or evasion
of Federal income tax will be considered
a significant purpose of the structure of a
transaction if the transaction is described
in paragraph (b)(2), (3), or (4) of this sec-
tion. However, a transaction described in
paragraph (b)(3) or (4) of this section
need not be registered if the transaction is
described in paragraph (b)(5) of this sec-
tion. For purposes of this section, Federal
income tax benefits include deductions,
exclusions from gross income, nonrecog-
nition of gain, tax credits, adjustments (or
the absence of adjustments) to the basis of
property, and any other tax consequences
that may reduce a taxpayer’s Federal in-
come tax liability by affecting the timing,
character, or source of any item of in-
come, gain, deduction, loss, or credit.
(2) Listed transactions. A transaction
is described in this paragraph (b)(2) if the
transaction is the same as or substantially
similar to one of the types of transactions
that the Internal Revenue Service (IRS)
has determined to be a tax avoidance
transaction and identified by notice, regu-
lation, or other form of published guid-
ance as a listed transaction for purposes of
section 6111. If a transaction becomes a
listed transaction after the date on which
registration would otherwise be required
under this section, and if the transaction
otherwise satisfies the confidentiality and
fee requirements of paragraphs (a)(2)(ii)
and (iii) of this section, registration shall
in all events be required with respect to
any interests in the transaction that are of-
fered for sale after the transaction be-
comes a listed transaction. However, be-
cause a transaction identified as a listed
transaction is generally considered to
have been structured for a significant tax
avoidance purpose, such a transaction or-
dinarily will have been subject to registra-
tion under this section before becoming a
listed transaction if the transaction previ-
ously satisfied the confidentiality and fee
requirements of paragraphs (a)(2)(ii) and
(iii) of this section.
(3) Transactions lacking economic sub-
stance—(i) Except as provided in para-
graph (b)(3)(ii) of this section, a transac-
tion is described in this paragraph (b)(3) if
the present value of the participant’s rea-
sonably expected pre-tax profit (after tak-
ing into account foreign taxes as expenses
and transaction costs) from the transac-
tion is insignificant relative to the present
value of the participant’s expected net
Federal income tax savings from the
transaction.
(ii) If the substance of the transaction is
the borrowing of money or the acquisition
of financial capital by a corporate partici-
pant, the transaction is described in this
paragraph (b)(3) only if the present value
of the Federal income tax deductions of
the taxpayer to whom the loan or financial
capital is provided significantly exceeds
the present value of the pre-tax return of
the person providing the loan or financial
capital.
(4) Other tax-structured transactions.
A transaction is described in this para-
graph (b)(4) if it has been structured to
produce Federal income tax benefits that
constitute an important part of the in-
tended results of the transaction and the
tax shelter promoter (or other person who
would be responsible for registration
under this section) reasonably expects the
transaction to be presented in the same or
substantially similar form to more than
one potential participant, unless the pro-
moter reasonably determines that—
(i) The potential participant is expected
to participate in the transaction in the ordi-
nary course of its business (including trans-
actions described in §1.6011–4T(b)(3)(iii))
in a form consistent with customary com-
mercial practice; and
(ii) There is a long-standing and gener-
ally accepted understanding that the ex-
pected Federal income tax benefits from
the transaction (taking into account any
combination of intended tax conse-
quences) are allowable under the Internal
Revenue Code for substantially similar
transactions.
(5) Excepted transactions. The avoid-
ance or evasion of Federal income tax
will not be considered a significant pur-
pose of the structure of a transaction if the
transaction is described in either para-
graph (b)(5)(i) or (ii) of this section.
(i) In the case of a transaction other
than a transaction described in paragraph
(b)(2) of this section, the tax shelter pro-
moter (or other person who would be re-
sponsible for registration under this sec-
tion) reasonably determines that there is
no reasonable basis under Federal tax law
for denial of any significant portion of the
expected Federal income tax benefits
from the transaction. Such a determina-
tion must take into account the entirety of
the transaction and any combination of
tax consequences that are expected to re-
sult from any component steps of the
transaction, must not be based on any un-
reasonable or unrealistic factual assump-
tions, and must take into account all rele-
vant aspects of Federal tax law, including
the statute and legislative history, treaties,
authoritative administrative guidance, and
judicial decisions that establish principles
of general application in the tax law (e.g.,
Gregory v. Helvering, 293 U.S. 465
(1935)).
(ii) The IRS makes a determination, by
published guidance, individual ruling
under paragraph (b)(6) of this section, or
otherwise, that the transaction is not sub-
ject to the registration requirements of
this section.
2000–11 I.R.B.757March 13, 2000

(6) Requests for ruling. If a tax shelter
promoter (or other person who would be
responsible for registration under this sec-
tion) is uncertain whether a transaction is
properly classified as a confidential cor-
porate tax shelter or is otherwise uncer-
tain whether registration is required under
this section, that person may, on or before
the date that registration would otherwise
be required under this section, submit a
request to the IRS for a ruling as to
whether the transaction is subject to the
registration requirements of this section.
If the request fully discloses all relevant
facts relating to the transaction, that per-
son’s potential obligation to register the
transaction will be suspended during the
period that the ruling request is pending
and, if the IRS subsequently concludes
that the transaction is a confidential cor-
porate tax shelter subject to registration
under this section, until the sixtieth day
after the issuance of the ruling (or, if the
request is withdrawn, sixty days from the
date that the request is withdrawn). In the
alternative, that person may register the
transaction in accordance with the re-
quirements of this section and append a
statement to the Form 8264, “Application
for Registration of a Tax Shelter,” which
states that the person is uncertain whether
the transaction is required to be registered
as a confidential corporate tax shelter, and
that the Form 8264 is being filed on a pro-
tective basis.
(7) Examples.The following examples
illustrate the application of paragraphs
(b)(1) through (b)(5) of this section. As-
sume, for purposes of these examples,
that the transactions are not the same as or
substantially similar to any of the types of
transactions that the IRS has identified as
listed transactions for purposes of section
6111 and thus are not described in para-
graph (b)(2) of this section. The exam-
ples are as follows:
Example 1—(i) Facts. Promoter organizes a
transaction between X, a U.S. corporation, and FC, a
foreign entity that is not subject to Federal income
tax. FC contributes cash to PRS, a partnership, in
exchange for a 99 percent partnership interest in
PRS. Promoter is initially the only other partner in
PRS. FC will receive a market rate of return on its
cash contribution and a fee for participating in the
transaction. PRS purchases personal property and
then leases it. PRS sells its right to the lease pay-
ments in exchange for cash. PRS allocates 99 per-
cent of the income from the sale to FC and one per-
cent to Promoter. PRS retains the leased property.
Shortly after PRS’s sale of the lease payments, X
buys FC’s 99 percent partnership interest in PRS.
The depreciation deductions on the leased property
are then allocated 99 percent to X and one percent to
Promoter.
(ii) Analysis. The transaction is described in
paragraph (b)(3)(i) of this section because the pre-
sent value of X’s reasonably expected pre-tax profit
from the transaction is insignificant relative to the
present value of X’s expected net Federal income
tax savings from the transaction. Therefore, unless
Promoter can reasonably determine that the IRS
would have no reasonable basis for denial of any
significant portion of the Federal income tax bene-
fits intended for X, the transaction is described in
paragraph (b)(1) of this section.
Example 2—(i) Facts. Y has designed a combi-
nation of financial instruments to be issued as a
package by corporations. The financial instruments
are expected to be treated as equity for financial ac-
counting purposes and as debt giving rise to allow-
able interest deductions for Federal income tax pur-
poses. Y reasonably expects to present this method
of raising capital to more than one potential corpo-
rate participant. Assume the transaction is not de-
scribed in paragraph (b)(3) of this section. Assume
that, because of the unusual nature of the combina-
tion of financial instruments, Y cannot conclude ei-
ther that the transaction represented by the financial
instruments is in customary commercial form or that
there is a long-standing and generally accepted un-
derstanding that interest deductions are available to
issuers of substantially similar combinations of fi-
nancial instruments. Further, assume that Y cannot
reasonably determine that the IRS would have no
reasonable basis to deny the deductions.
(ii) Analysis. The transaction represented by this
combination of financial instruments is a transaction
described in paragraph (b)(4) of this section. How-
ever, if Y is uncertain whether this transaction is de-
scribed in paragraph (b)(4) of this section, or is oth-
erwise uncertain whether registration is required, Y
may apply for a ruling under paragraph (b)(6) of this
section, and the transaction will not be required to be
registered while the ruling is pending or for sixty
days thereafter.
(c) Conditions of confidentiality—(1) In
general. All the facts and circumstances
relating to the transaction will be consid-
ered when determining whether an offer is
made under conditions of confidentiality
as described in section 6111(d)(2), includ-
ing prior conduct of the parties. Pursuant
to section 6111(d)(2)(A), if an offeree’s
disclosure of the structure or tax aspects of
the transaction is limited in any way by an
express or implied understanding or
agreement with or for the benefit of any
tax shelter promoter, an offer is considered
made under conditions of confidentiality,
whether or not such understanding or
agreement is legally binding. Pursuant to
section 6111(d)(2)(B), an offer will also be
considered made under conditions of con-
fidentiality in the absence of any such un-
derstanding or agreement if any tax shelter
promoter knows or has reason to know
that the transaction is protected from dis-
closure or use in any other manner, such as
where the transaction is claimed to be pro-
prietary to the tax shelter promoter or any
party other than the offeree. An offeree’s
privilege to maintain the confidentiality of
a communication relating to a tax shelter
in which the taxpayer might participate or
has agreed to participate, including an of-
feree’s confidential communication with
the offeree’s attorney, is not itself a condi-
tion of confidentiality.
(2) Presumption. Unless facts and cir-
cumstances clearly indicate otherwise, an
offer is not considered made under condi-
tions of confidentiality if the tax shelter
promoter enters into a written agreement
with each person who participates or dis-
cusses participation in the transaction and
such agreement expressly authorizes such
persons to disclose every aspect of the
transaction with any and all persons,
without limitation of any kind.
(d) Determination of fees.All the facts
and circumstances relating to the transac-
tion will be considered when determining
the amount of fees, in the aggregate, that
the tax shelter promoters may receive.
For purposes of this paragraph (d), all
consideration that tax shelter promoters
may receive is taken into account, includ-
ing contingent fees, fees in the form of
equity interests, and fees the promoters
may receive for other transactions as con-
sideration for promoting the tax shelter.
For example, if a tax shelter promoter
may receive a fee for arranging a transac-
tion that is a confidential corporate tax
shelter and a separate fee for another
transaction that is not a confidential cor-
porate tax shelter, part or all of the fee
paid with respect to the other transaction
may be treated as a fee paid with respect
to the confidential corporate tax shelter if
the facts and circumstances indicate that
the fee paid for the other transaction is in
consideration for the confidential corpo-
rate tax shelter. For purposes of deter-
mining whether the tax shelter promoters
may receive fees in excess of $100,000,
the fees from all substantially similar
transactions are considered part of the
same tax shelter and must be aggregated.
(e) Registration—(1) Time for register-
ing—(i) In general. A tax shelter must be
registered not later than the day on which
the first offering for sale of interests in the
shelter occurs. An offer to participate in a
confidential corporate tax shelter shall be
March 13, 20007582000–11 I.R.B.

treated as an offer for sale. If interests in
a confidential corporate tax shelter were
first offered for sale on or before February
28, 2000, the first offer for sale of inter-
ests in the shelter that occurs after Febru-
ary 28, 2000, shall be considered the first
offer for sale under this section.
(ii) Certain registrations deemed
timely—(A) In general. The IRS will
consider a registration as timely made for
a confidential corporate tax shelter in
which interests are offered for sale after
February 28, 2000, if the tax shelter is
registered no later than August 26, 2000.
If an interest in a confidential corporate
tax shelter is first offered for sale after
February 28, 2000, and the tax shelter
also constitutes a tax shelter under section
6111(c), the persons responsible for regis-
tering the tax shelter may either complete
and file Form 8264, “Application for
Registration of a Tax Shelter”, including
the information required by paragraph
(e)(2) of this section, not later than the
day on which an interest in the tax shelter
is first offered for sale after February 28,
2000, or complete and file Form 8264,
“Application for Registration of a Tax
Shelter”, for the section 6111(c) tax shel-
ter not later than the day on which an in-
terest in the tax shelter is first offered for
sale under section 6111(a) and then file an
amended Form 8264 with the information
required by paragraph (e)(2) of this sec-
tion not later than August 26, 2000.
(B) Special rule. If a transaction be-
comes a confidential corporate tax shelter
(e.g., because of a change in the law or
factual circumstances, or because the
transaction becomes a listed transaction)
subsequent to the first offering for sale
after February 28, 2000, and the transac-
tion was not previously required to be
registered as a confidential corporate tax
shelter under this section, the transaction
must be registered under this section if in-
terests are offered for sale after the trans-
action becomes a confidential corporate
tax shelter. The transaction must be regis-
tered by the later of the next offering for
sale of interests in the shelter or August
26, 2000.
(2) Procedures for registering—(i) In
general. To register a confidential corpo-
rate tax shelter, the person responsible for
registering the tax shelter must file Form
8264, “Application for Registration of a
Tax Shelter”. (Form 8264 is also used to
register tax shelters defined in section
6111(c).) The exemptions from the regis-
tration requirements contained in the in-
structions to the current Form 8264 apply
only to tax shelters defined in section
6111(c). Similar to the treatment pro-
vided under Q&A-22 and Q&A-48 of
§301.6111–1T, transactions involving
similar business assets and similar plans
or arrangements that are offered to corpo-
rate taxpayers by the same person or re-
lated persons are aggregated and consid-
ered part of a single tax shelter. However,
in contrast with the requirement of Q&A-
48 of §301.6111–1T, the tax shelter pro-
moter may file a single Form 8264 with
respect to any such aggregated tax shelter,
provided an amended Form 8264 is filed
to reflect any material changes and to in-
clude any additional or revised written
materials presented in connection with an
offer to participate in the shelter. Further-
more, all transactions that are part of the
same tax shelter and that are to be carried
out by the same corporate participant (or
one or more other members of the same
affiliated group within the meaning of
section 1504) must be registered on the
same Form 8264.
(ii) Interim registration procedure.
Until Form 8264 and its instructions are
revised to incorporate the provisions of
this paragraph (e)(2)(ii), the person re-
sponsible for registering a confidential
corporate tax shelter must—
(A) Type or legibly print “Confidential
Corporate Tax Shelter Filed Under
§301.6111–2T” at the top of Form 8264
(Rev. 11-99), “Application for Registra-
tion of a Tax Shelter”;
(B) Complete Part I and lines 1a, 2, 3,
4, 6, and 12 in Part II of Form 8264;
(C) In the section titled “Explanation of
Items” on Form 8264, provide a detailed
description of the tax shelter, including a
description of the structure of the tax shel-
ter and the intended tax benefits;
(D) Attach any written materials that
are presented to potential participants in
connection with the offering of sales of
interests in the tax shelter, including any
analyses or opinions relating to the in-
tended tax benefits of the shelter; and
(E) Sign the Form 8264 and send it to
the Internal Revenue Service Center,
Kansas City, MO 64999.
(iii) Use of subsequent versions of
Form 8264. If a person who is required to
register a confidential corporate tax shel-
ter under section 6111 uses a subsequent
version of the Form 8264, the person
must complete the appropriate parts of the
revised form and follow the applicable in-
structions.
(iv) Tax shelters that constitute both
section 6111(c) and section 6111(d) tax
shelters. If a person is registering an
arrangement that is both a confidential
corporate tax shelter and a section 6111(c)
tax shelter, the person must follow the re-
quirements of this section and the instruc-
tions for Form 8264. In such a situation,
the taxpayer must complete the entire
form because the tax shelter is a section
6111(c) tax shelter and, if using Form
8264 (Rev. 11-99), type or legibly print
“Confidential Corporate Tax Shelter filed
under §301.6111–2T” at the top of Form
8264 and include the information required
in paragraphs (e)(2)(ii)(C) and (D) of this
section because the tax shelter is also a
confidential corporate tax shelter. If an
arrangement is both a section 6111(c) tax
shelter and a confidential corporate tax
shelter and is a transaction described in
the “Exemptions from Registration” sec-
tion of the instructions for Form 8264
(Rev. 11-99), the person registering the
arrangement must comply with the re-
quirements of this section to register the
arrangement as a confidential corporate
tax shelter.
(3) Claims of privilege.(i) In any case
in which an attorney or federally autho-
rized tax practitioner within the meaning
of section 7525 is the person required to
register a confidential corporate tax shel-
ter, and that person believes that informa-
tion required to be disclosed under para-
graph (e)(2) of this section is protected by
the attorney-client privilege or by the con-
fidentiality privilege of section 7525(a),
any information omitted from the Form
8264 on the basis of such a claim must be
supported by a statement attached to
Form 8264 which satisfies the require-
ments set forth in paragraph (e)(3)(ii) of
this section.
(ii) A statement supporting a claim of
privilege must be signed by the attorney
or federally authorized tax practitioner
under penalties of perjury, must identify
each document or category of information
for which a claim of privilege is made,
and must include the following represen-
tations with respect to each document or
2000–11 I.R.B.759March 13, 2000

category of information for which the
privilege is claimed—
(A) Specifically represent that the in-
formation was a confidential practitioner-
client communication and, in the case of
information which a federally authorized
tax practitioner claims is privileged under
section 7525, that the omitted information
was not part of tax advice that constituted
the promotion of a tax shelter within the
meaning of section 7525(b);
(B) Specifically represent that the per-
son required to register (and, to the best of
such person’s knowledge and belief, all
others in possession of the omitted infor-
mation) did not disclose the omitted infor-
mation to any person whose receipt of
such information would result in a waiver
of the privilege.
(f) Definition of tax shelter promoter.
For purposes of section 6111(d)(2) and
this section, the term “tax shelter pro-
moter” includes a tax shelter organizer as
defined in section 6111(e)(1) and
§301.6111–1T(Q&A-26 through Q&A-
32) and any other person who participates
in the organization, management or sale
of a tax shelter (other than a person who
merely performs services of the kind de-
scribed in Q&A-33 of §301.6111–1T) or
any person related (within the meaning of
section 267 or 707) to such tax shelter or-
ganizer or such other person. Any person
that satisfies this requirement must com-
ply with the requirements under section
6112.
(g) Person required to register—(1) Ta x
shelter promoters. In addition to the rules
in section 6111, taxpayers must use the
rules of §301.6111–1T (Q&A-34 through
Q&A-39) in determining the circumstances
under which a tax shelter promoter must
register a confidential corporate tax shelter
described in section 6111(d).
(2) Persons who discuss the transac-
tion; all promoters are foreign persons—
(i) In general. If all of the tax shelter pro-
moters of a confidential corporate tax
shelter are foreign persons, any person
who discusses participation in the transac-
tion must register the shelter under this
section within 90 days after beginning
such discussions.
(ii) Exceptions. Registration by a per-
son discussing participation in a transac-
tion is not required if either—
(A) The person does not participate, di-
rectly or indirectly, in the shelter and noti-
fies the tax shelter promoter in writing,
within 90 days of beginning such discus-
sions, that the person will not participate;
or
(B) Within 90 days after beginning
such discussions, the person obtains and
reasonably relies on both—
(1) A written statement from one of the
tax shelter promoters that such promoter
has registered the tax shelter under this
section; and
(2) A copy of the registration.
(iii) Determination of foreign status.
For purposes of this paragraph (g)(2), a
person must presume that all tax shelter
promoters are foreign persons unless the
person either—
(A) Discusses participation in the tax
shelter with a promoter that is a United
States person; or
(B) Obtains and reasonably relies on a
written statement from one of the promot-
ers that at least one of the promoters is a
United States person.
(iv) Discussion. Discussing participa-
tion in a transaction includes discussing
such participation with any person that
conveys the tax shelter promoter’s pro-
posal. For purposes of this paragraph
(g)(2), any person that participates di-
rectly or indirectly in a transaction will be
treated as having discussed participation
in the transaction not later than the date of
the agreement to participate. Thus, a tax
shelter participant will be treated as hav-
ing discussed participation in the transac-
tion even if all discussions were con-
ducted by an intermediary and the
agreement to participate was made indi-
rectly through another person acting on
the participant’s behalf (for example,
through an intermediary empowered to
commit the participant to participate in
the shelter).
(v) Special rule for controlled entities.
A person (first person) will be treated as
participating indirectly in a confidential
corporate tax shelter if a foreign person
controlled by the first person participates
in the shelter, and a significant purpose of
the shelter is the avoidance or evasion of
the first person’s Federal income tax. For
purposes of this paragraph (g)(2)(v), con-
trol of a foreign corporation or partner-
ship will be determined under the rules of
section 6038(e)(2) and (3), except that
such section shall be applied by substitut-
ing “10” for “50” each place it appears
and “at least” for “more than” each place
it appears. In addition, section 6038(e)(2)
shall be applied for these purposes with-
out regard to the constructive ownership
rules of section 318 and by treating stock
as owned if it is owned directly or indi-
rectly. Section 6038(e)(3) shall be ap-
plied for these purposes without regard to
the last sentence of section 6038(e)(3)(B).
Any beneficiary with a 10 percent or
more interest in a foreign trust or estate
shall be treated as controlling that trust or
estate for purposes of this paragraph
(g)(2)(v).
(vi) Other rules—(A) For purposes of
the registration requirements under sec-
tion 6111(d)(3), it is presumed that the tax
shelter promoters will receive fees in ex-
cess of $100,000 in the aggregate unless
the person responsible for registering the
tax shelter can show otherwise.
(B) Any person treated as a tax shelter
promoter under section 6111(d) solely by
reason of being related (within the mean-
ing of section 267 or 707) to a foreign
promoter will be treated as a foreign pro-
moter for purposes of this paragraph
(g)(2).
(h) Effective date.This section applies
to confidential corporate tax shelters in
which any interests are offered for sale
after February 28, 2000. If an interest is
sold after February 28, 2000, it is treated
as offered for sale after February 28,
2000, unless the sale was pursuant to a
written binding contract entered into on or
before February 28, 2000.
Par. 3. In §602.101, paragraph (b) is
amended by adding an entry for
§301.6111–2T to read as follows:
§602.101 OMB Control numbers.
* * * * *
(b) * * *
Charles O. Rossotti,
Commissioner of Internal Revenue.
Approved February 23, 2000.
Jonathan Talisman,
Acting Assistant Secretary
of the Treasury.
(Filed by the Office of the Federal Register on Feb-
ruary 28, 2000, 8:45 a.m., and published in the issue
of the Federal Register for March 2, 2000, 65 F.R.
11215)
March 13, 20007602000–11 I.R.B.

Section 6112.— Organizers and
Sellers of Potentially Abusive
Tax Shelters Must Keep Lists of
Investors
26 CFR 301.6112–1T: Questions and answers
relating to the requirement to maintain a list of
investors in potentially abusive tax shelters
(Temporary).
T.D. 8875
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 301 and 602
Requirements to Maintain List of
Investors in Potentially Abusive
Tax Shelters
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains
temporary regulations requiring the main-
tenance of lists of investors in potentially
abusive tax shelters described in section
6112. The temporary regulations affect
organizers of potentially abusive tax shel-
ters. The text of these temporary regula-
tions also serves as the text of the pro-
posed regulations set forth in the notice of
proposed rulemaking on this subject in
REG–103736–00, page 768.
DATES: Effective date. These temporary
regulations are effective February 28,
2000.
Applicability date. For dates of applica-
bility, see A-22 of §301.6112–1T of these
regulations.
FOR FURTHER INFORMATION CON-
TACT: Richard Castanon, (202) 622-
3080, or Mary Beth Collins, (202) 622-
3070, (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
These regulations are being issued
without prior notice and public procedure
pursuant to the Administrative Procedure
Act (5 U.S.C. 553). For this reason, the
collections of information contained in
these regulations have been reviewed
and, pending receipt and evaluation of
public comments, approved by the Office
of Management and Budget under con-
trol number 1545-1686. Responses to
these collections of information are
mandatory.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
OMB control number.
For further information concerning these
collections of information, and where to
submit comments on the collections of in-
formation and the accuracy of the estimated
burden, and suggestions for reducing this
burden, please refer to the preamble to the
cross-referencing notice of proposed rule-
making REG–103736–00, page 768.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
This document amends 26 CFR part
301 regarding the requirement to maintain
lists of investors in potentially abusive tax
shelters under section 6112. Section 6708
provides penalties for failing to maintain
the investor list under section 6112.
The temporary regulations have been
drafted in question and answer format.
No inference should be drawn regarding
issues not raised or because certain ques-
tions and not others are included. The
temporary regulations contained in this
document will remain in effect until addi-
tional temporary or final regulations are
published in the Federal Register.
Explanation of Provisions
I.Potentially Abusive Tax Shelter
Section 6112 provides that any person
who organizes or sells any interest in a
potentially abusive tax shelter must
maintain a list identifying each person
who was sold an interest in such shelter.
A potentially abusive tax shelter under
section 6112 includes any investment that
is required to be registered with the IRS
as a tax shelter under section 6111, and
any other entity, plan, or arrangement, if
specified in regulations, that has a poten-
tial for tax avoidance or evasion. Any
person who is required to maintain a list
under section 6112 must make the list
available for inspection upon request by
the Secretary of the Treasury, and gener-
ally must retain any information required
to be included on the list for seven years.
References in these regulations to the
term “transaction” include all of the fac-
tual elements necessary to support the tax
benefits that are expected to be claimed
with respect to any entity, plan, or
arrangement, including any series of re-
lated steps carried out as part of a pre-
arranged plan.
Section 6112 authorizes the Secretary
of the Treasury to specify in regulations
transactions other than those subject to
registration under section 6111 that have a
potential for tax avoidance or evasion.
The conference report accompanying sec-
tion 6112 explains that “in designating
these other arrangements, the Secretary
may, for example, specifically identify
types of investments, or may provide that
any investment falling within a modified
form of the definition of tax shelter for
registration purposes is subject to the list-
ing requirement.” H.R. C
ONF. REP. NO.
861, 98th Cong., 2d Sess. 982 (1984).
Concurrent with the addition of these
amendments to the temporary regulations
2000–11 I.R.B.761March 13, 2000
CFR Part or Section WhereCurrent OMB
Identified and DescribedControl No.
* * * * *
301.6111–2T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545–1687
* * * * *

under section 6112, the Service has issued
temporary and proposed regulations
under section 6111(d) relating to the reg-
istration of confidential corporate tax
shelters. These regulations under section
6112 follow a modified form of the defin-
ition of a confidential corporate tax shel-
ter under section 6111(d)(1) for purposes
of defining the potentially abusive tax
shelters that are subject to the list require-
ment under section 6112. Under the mod-
ified definition, as under section
6111(d)(1)(A), the term “potentially abu-
sive tax shelter” includes a transaction for
which a significant purpose of the struc-
ture of the transaction is the avoidance or
evasion of Federal income tax. The rules
set forth in the temporary regulations
under section 6111(d) are applicable in
determining whether a significant purpose
of the structure of a transaction is the
avoidance or evasion of Federal income
tax.
For purposes of section 6112, the defin-
ition of tax shelter under section
6111(d)(1) has been modified in two re-
spects: (1) the limitation of section
6111(d)(1)(B) to transactions offered to
any potential participant under conditions
of confidentiality does not apply for pur-
poses of section 6112; and (2) the limita-
tion of section 6111(d)(1)(C) to transac-
tions in which the promoters may receive
fees in excess of $100,000 does not apply
for purposes of section 6112. Therefore,
certain categories of transactions that are
not subject to registration under section
6111 may be subject to the list require-
ment of section 6112, including any non-
confidential transactions offered directly
or indirectly to corporate participants a
significant purpose of the structure of
which is the avoidance or evasion of Fed-
eral income tax within the meaning of
section 6111(d) and the regulations there-
under.
Section 301.6111–2T provides a proce-
dure for obtaining rulings as to whether a
transaction is subject to registration under
§301.6111–2T. The same procedure shall
be available to a person who is uncertain
whether a transaction constitutes a poten-
tially abusive tax shelter for which a list
must be maintained under section 6112,
and the requirement to maintain a list
available for inspection by the Secretary
shall be suspended during the period that
such ruling request is pending and for
sixty days thereafter.
II.Organizer Also Includes Promoter
The regulations provide that for pur-
poses of the list requirement, an organizer
includes a promoter as defined in section
6111(d)(2), as well as any person desig-
nated as an organizer under the existing
temporary regulations. A promoter is any
person who participates in the organiza-
tion, management, or sale of the tax shel-
ter or any related person (within the
meaning of section 267 or 707).
III.Information to be Included on List
Section 6112 authorizes the Secretary
of the Treasury to specify the information
that organizers and sellers of interests in
potentially abusive tax shelters are re-
quired to include as part of the lists of per-
sons who were sold interests in the tax
shelters. The temporary regulations mod-
ify the information that must be included
as part of the lists and made available for
inspection by the IRS. The regulations
provide that in addition to the information
currently required under A-17 of
§301.6112–1T, each list must include (1)
a detailed description of the tax shelter
that describes both the structure of the tax
shelter and the intended tax benefits for
participants in the tax shelter, (2) the
amount of money invested or to be in-
vested by each person who is required to
be included on the list, (3) a summary or
schedule of the tax benefits that each such
person is intended or expected to derive
from participation in the tax shelter, if
known by the organizer or seller, and (4)
copies of any additional written materials,
including tax analyses and opinions, relat-
ing to the tax shelter that have been given
to any potential participant in the tax shel-
ter or to any representatives, tax advisors,
or agents of potential participants by the
organizer or seller or by any other person
who has participated in the offering of the
tax shelter (excluding any written materi-
als that the organizer or seller has never
possessed).
Generally, a separate list must be main-
tained for each potentially abusive tax
shelter. Moreover, the temporary regula-
tions provide that interests in substantially
similar tax shelter transactions that are
sold to different persons generally are to
be treated as interests in the same tax
shelter for purposes of section 6112. To
ensure that the IRS is able to identify all
of the tax shelters that have been offered
by an organizer or seller and that are
structured in a similar manner, the regula-
tions further provide that the list for each
tax shelter must identify each other tax
shelter (if any) that the organizer or seller
has offered that has not been treated as
part of the same tax shelter, but that uti-
lizes a similar structure or is intended to
produce similar tax benefits.
It is recognized that, in the absence of a
limitation on the disclosure obligation
under section 6112, there could be situa-
tions in which section 6112 and the tem-
porary regulations would require an orga-
nizer or a seller of a potentially abusive
tax shelter to disclose information that is
otherwise protected by the common law
attorney-client privilege or by the privi-
lege for confidential tax advice under sec-
tion 7525(a). The temporary regulations
provide that, in any case in which an or-
ganizer or a seller of a potentially abusive
tax shelter believes that information re-
quired to be maintained as part of the list
for that tax shelter is protected by the at-
torney-client privilege or constitutes con-
fidential tax advice protected under sec-
tion 7525(a), such information may be
withheld from disclosure to the Service,
provided that the organizer or seller pro-
vides the Service with a statement signed
under penalties of perjury with informa-
tion and representations required in that
statement that are the same as those re-
quired by the regulations under section
6111(d) if the promoter of a confidential
corporate tax shelter asserts that informa-
tion required to be included with Form
8264, “Application for Registration of a
Tax Shelter,” is privileged.
IV.Effective Date
An organizer or a seller must maintain
a list with respect to any interest acquired
by an investor in a potentially abusive tax
shelter after February 28, 2000. If a trans-
action becomes a potentially abusive tax
shelter after interests are acquired by in-
vestors, an organizer or a seller must
maintain a list with respect to any interest
in the transaction acquired after the trans-
action becomes a potentially abusive tax
shelter. Additionally, the IRS will not ask
to inspect any list for a potentially abusive
tax shelter, other than a tax shelter de-
scribed in section 6111(c), until August
March 13, 20007622000–11 I.R.B.

26, 2000. The lists required by the pre-
ceding two sentences with regard to inter-
ests acquired in potentially abusive tax
shelters must contain the information re-
quired by A-17 of this section as it relates
to such interests. The rules that apply
with respect to interests acquired in po-
tentially abusive tax shelters on or before
February 28, 2000, are contained in 26
CFR part 301 revised as of April 1, 1999.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assess-
ment is not required. It also has been de-
termined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions. It is hereby certified that the collec-
tion of information in these regulations
will not have a significant economic im-
pact on a substantial number of small en-
tities. This certification is based upon the
fact that persons responsible for maintain-
ing the investor lists described in the reg-
ulations are principally large publicly
traded corporations and the burden is not
significant, as described in the preamble.
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 Internal
Revenue Code, these temporary regula-
tions will be submitted to the Chief Coun-
sel for Advocacy of the Small Business
Administration for comment on its impact
on small business.
Drafting Information
The principal authors of these regula-
tions are Mary Beth Collins and Richard
Castanon, Office of Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated in
their development.
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 301 and
602 are amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 is amended by adding an entry in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6112–1T also issued under
26 U.S.C. 6112.* * *
Par. 2. Section 301.6112–1T is
amended as follows:
1. The last sentence of A-3 is revised.
2. A-4 is revised.
3. Two sentences are added at the end
of A-5.
4. A sentence is added at the end of A-
7.
5. Paragraph (c) of A-8 is revised.
6. The first sentence of A-9 is removed
and two new sentences are added in its
place.
7. The second sentence of the intro-
ductory text of A-11 is revised.
8. Paragraphs (a) and (b) of A-13 are
revised.
9. A-14 is revised.
10. The first sentence of the introduc-
tory text of A-15 is revised.
11. A-17 is revised.
12. Two sentences are added at the end
of A-18.
13. A-22 is revised.
The additions and revisions read as fol-
lows:
§301.6112–1T Questions and answers re-
lating to the requirement to maintain a list
of investors in potentially abusive tax
shelters (temporary).
* * * * *
A-3. * * * See §301.6111–1T for rules
relating to tax shelter registration and
§301.6111–2T for rules relating to confi-
dential corporate tax shelter registration.
* * * * *
A-4. (a) Yes. For purposes of the list
requirement, a tax shelter includes any tax
shelter that is a projected income invest-
ment, as defined in A-57A of
§301.6111–1T, and any transaction a sig-
nificant purpose of the structure of which
is the avoidance or evasion of Federal in-
come tax within the meaning of section
6111(d)(1)(A) and §301.6111–2T(b). For
this purpose, as under §301.6111–2T, the
term transactionincludes all of the fac-
tual elements necessary to support the tax
benefits that are expected to be claimed
with respect to any entity, plan, or
arrangement, including any series of re-
lated steps carried out as part of a pre-
arranged plan.
(b) Section 301.6111–2T provides a
procedure for obtaining rulings as to
whether a transaction is subject to regis-
tration under §301.6111–2T. The same
procedure shall be available to a person
who is uncertain whether a transaction
constitutes a tax shelter for which a list
must be maintained under this section.
The requirement to make a list which con-
tains the information required by this sec-
tion available for inspection by the Secre-
tary shall be suspended during the period
that such ruling request is pending and for
sixty days thereafter; however, if it is ulti-
mately determined that the transaction is a
tax shelter, the pendency of such a ruling
request shall not affect the requirement to
maintain the list or limit the participants
required to be included on the list or the
other information required to be included
as part of the list.
* * * * *
A-5. * * * An organizer also includes a
promoter described in section 6111(d)(2).
Under section 6111(d)(2), a promoter is
any person who participates in the organi-
zation, management, or sale of the tax
shelter or any related person (within the
meaning of section 267 or 707).
* * * * *
A-7. * * * In addition, in any case in
which a person has directly or indirectly
paid consideration to an organizer or
seller for the right to participate in a tax
shelter, for services necessary to the orga-
nization or structure of such tax shelter, or
for information that is integral to partici-
pation in such tax shelter, the participant
shall be considered to have acquired an
interest in the tax shelter and to have been
sold an interest in the tax shelter by the
organizer or seller.
* * * * *
A-8. * * * (c) Any transfer of an inter-
est made by or through a person related
(as defined in section 465(b)(3)(C)) to the
organizer or the tax shelter (provided the
organizer is involved in the tax shelter on
the date of the transfer);
* * * * *
A-9. An organizer has a duty to make a
reasonable inquiry only with respect to
transfers of interests in the tax shelter
made by a seller described in paragraph
(a) of A-6 of this section who acquired the
interests from the organizer or a person
related (as defined in section
465(b)(3)(C)) to the organizer, or the tax
2000–11 I.R.B.763March 13, 2000

shelter or a person related (as defined in
section 465(b)(3)(C)) to the tax shelter
(provided the organizer is involved in the
tax shelter on the date the interest is trans-
ferred to the seller). See Q&A-8 of this
section. * * *
* * * * *
A-11. * * * Organizers and sellers may
not designate one person to maintain a list
for the tax shelter, however, unless the tax
shelter is timely and properly registered
under section 6111 or unless the tax shel-
ter is described in Q&A-4 of this sec-
tion.* * *
* * * * *
A-13. (a) If the tax shelter is required to
be registered under section 6111 at the
time an agreement under A-12 of this sec-
tion is signed, a seller or an organizer who
signs the agreement shall not be subject to
penalty under section 6708 for failing to
maintain a list provided that the seller or
organizer—
(1) Submits to the designated person all
of the information that the organizer or
seller otherwise would be required to
maintain on a list (as described in A-8, A-
10, and A-17 of this section); and
(2) Provides to each investor (within
the meaning of paragraph (c) of A-6 of
this section) otherwise required to be in-
cluded on a list maintained by such orga-
nizer or seller a notice in the form pre-
scribed in paragraph (c) of this A-13.
(b) If the tax shelter is described in A-4
of this section at the time an agreement
under A-12 of this section is signed, a
seller or an organizer who signs the agree-
ment shall not be subject to penalty under
section 6708 for failing to maintain a list
provided that the seller or organizer sub-
mits to the designated person all of the in-
formation that the organizer or seller oth-
erwise would be required to maintain on a
list (as described in A-8, A-10, and A-17
of this section). If the tax shelter ceases
to be a projected income investment
under A-57G of §301.6111–1T, or the tax
shelter becomes subject to the registration
requirements under section 6111, the des-
ignated person must provide to each in-
vestor (within the meaning of paragraph
(c) of A-6 of this section) required to be
included on the list an explanation that the
tax shelter has ceased to be projected in-
come investment or that the tax shelter is
subject to the registration requirements of
section 6111, whichever applies, and a
notice substantially in the form prescribed
in paragraph (c) of this A-13.
* * * * *
A-14. Yes. Any seller described in
paragraph (a) of A-6 of this section who
does not sign a designation agreement
under A-12 of this section (including or-
ganizers who are such sellers) with re-
spect to a tax shelter that is required to be
registered under section 6111 must pro-
vide a notice to all investors (within the
meaning of paragraph (c) of A-6 of this
section) who acquire interests in the tax
shelter from the seller. The notice must
be substantially in the form prescribed in
paragraph (c) of A-13 of this section ex-
cept that the notice must include the name
and address of the designated person. In
the case of a tax shelter described in A-4
of this section, a notice to investors need
not be provided until such time, if any, as
the tax shelter ceases to be a projected in-
come investment under A-57G of
§301.6111–1T, or the tax shelter becomes
subject to the registration requirements
under section 6111. In such a case, the
seller shall provide, with the notice, an
explanation that the tax shelter has ceased
to be a projected income investment, or
that the tax shelter has otherwise become
subject to the registration requirements
under section 6111, whichever applies.
* * * * *
A-15. An investor who retransfers an
interest in a tax shelter that is described in
A-4 of this section, is not required to
maintain a list with respect to the retrans-
fer unless prior to the retransfer the tax
shelter ceases to be a projected income in-
vestment under A-57G of §301.6111–1T
or otherwise becomes subject to the regis-
tration requirements under section 6111.
* * * * *
A-17. (a) A list must contain the fol-
lowing information—
(1) The name of the tax shelter and the
registration number, if any, obtained
under section 6111;
(2) The TIN (as defined in section
7701(a)(41)), if any, of the tax shelter;
(3) The name, address, and TIN (as de-
fined in section 7701(a)(41)) of each per-
son who is required to be included on the
list under A-8 or A-10 of this section and,
in the case of a tax shelter that is a trans-
action described in section 6111(d)(1)(A)
and §301.6111–2T(b), the name, address,
and TIN of any indirect corporate partici-
pant in the shelter if known to the orga-
nizer or seller;
(4) If applicable, the number of units
(i.e., percentage of profits, number of
shares, etc.) acquired by each person who
is required to be included on the list;
(5) The date on which each interest was
acquired;
(6) The amount of money invested in
the tax shelter by each person required to
be included on the list under A-8 or A-10
of this section;
(7) A detailed description of the tax
shelter that describes both the structure of
the tax shelter and the intended tax bene-
fits for participants in the tax shelter;
(8) A summary or schedule of the tax
benefits that each person is intended or
expected to derive from participation in
the tax shelter, if known by the organizer
or seller;
(9) Copies of any additional written
materials, including tax analyses or opin-
ions, relating to the tax shelter that have
been given to any potential participants in
the tax shelter or to any representatives,
tax advisors, or agents of such potential
participants by the organizer or seller or
by any other person who has participated
in the offering of the tax shelter (exclud-
ing any written materials that the orga-
nizer or seller has never possessed);
(10) If the interest was not acquired
from the person maintaining the list, the
name of the person from whom the inter-
est was acquired; and
(11) The name and address of each
agent of the person maintaining the list
who is described in paragraph (b) of A-6
of this section.
(b) In any case in which an organizer or
a seller of a potentially abusive tax shelter
believes that information required to be
maintained as part of the list for that tax
shelter is protected by the attorney-client
privilege or constitutes confidential tax
advice protected under section 7525(a),
such information may be withheld from
disclosure to the Service, provided that
the organizer or seller provides the Ser-
vice with a statement signed under penal-
ties of perjury with information and repre-
sentations required in that statement that
are the same as those required by
§301.6111–2T if the promoter of a confi-
dential corporate tax shelter asserts that
information required to be included with
Form 8264, “Application for Registration
March 13, 20007642000–11 I.R.B.

of a Tax Shelter,” is privileged.
* * * * *
A-18. * * * Interests in substantially
similar tax shelter transactions that are
sold to different persons generally are to
be treated as interests in the same tax
shelter for purposes of this section. Fur-
ther, the list for each tax shelter must
identify each other tax shelter (if any) that
the organizer or seller has offered that has
not been treated as part of the same tax
shelter, but that utilizes a similar structure
or is intended to produce similar tax bene-
fits.
* * * * *
A-22. An organizer or seller must
maintain a list with respect to any interest
acquired by an investor (within the mean-
ing of paragraph (c) of A-6 of this section)
in a potentially abusive tax shelter after
February 28, 2000. If a transaction be-
comes a potentially abusive tax shelter
after interests are acquired by investors,
an organizer or a seller must maintain a
list with respect to any interest in the
transaction acquired after the transaction
becomes a potentially abusive tax shelter.
Additionally, the Internal Revenue Ser-
vice will not ask to inspect any list for a
potentially abusive tax shelter, other than
a tax shelter described in section 6111(c),
until August 26, 2000. The lists required
by the preceding two sentences with re-
gard to interests acquired in potentially
abusive tax shelters must contain the in-
formation required by A-17 of this section
as it relates to such interests. The rules
that apply with respect to interests ac-
quired in potentially abusive tax shelters
acquired on or before February 28, 2000,
are contained in 26 CFR part 301 revised
as of April 1, 1999.
Par. 3. In §602.101, paragraph (b) is
amended by revising the entry for
§301.6112–1T to read as follows:
§602.101 OMB Control numbers.
* * * * *
(b) * * *
Charles O. Rossotti,
Commissioner of Internal Revenue.
Approved February 23, 2000.
Jonathan Talisman,
Acting Assistant Secretary
of the Treasury.
(Filed by the Office of the Federal Register on Feb-
ruary 28, 2000, 8:45 a.m. , and published in the issue
of the Federal Register for March 2, 2000, 65 F.R.
11211)
2000–11 I.R.B.765March 13, 2000
CFR Part or Section WhereCurrent OMB
Identified and DescribedControl No.
* * * * *
301.6112–1T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545–0865
1545-1686
* * * * *

26 CFR 601.201: Rulings and determination
letters.(Also Part I, §§412, 4971.)
Rev. Proc. 2000–17
Section 1. Purpose
This revenue procedure provides for a
waiver of the 100 percent tax imposed
under § 4971(b) of the Internal Revenue
Code (the “Code”) on an employer who
maintains a pension plan for which there
is an accumulated funding deficiency
under § 412. The waiver is applicable to
certain terminated single-employer de-
fined benefit plans if specific conditions
are satisfied.
Section 2. Background
.01 Section 4971(a) provides for the
imposition of an initial tax of ten percent
(five percent in the case of a multiem-
ployer plan) on the amount of the accu-
mulated funding deficiency under a plan
as determined under § 412.
.02 Section 4971(b) provides for an
additional tax equal to 100 percent of any
uncorrected accumulated funding defi-
ciency on which an initial tax is imposed
under § 4971(a).
.03 Section 3002(b) of the Employee
Retirement Income Security Act of 1974
(“ERISA”), Pub. L. 93–406, 1974–3 C.B.
166, provides that the Secretary of the
Treasury may waive the imposition of the
tax imposed under § 4971(b) of the Code
in appropriate cases.
.04 Rev. Rul. 79–237, 1979–2 C.B.
190, provides that in the year of termina-
tion of a plan, the tax imposed by §
4971(b) applies unless the accumulated
funding deficiency, as of the end of the
plan year in which the plan is terminated,
is reduced to zero.
.05 Rev. Proc. 81–44, 1981–2 C.B.
618, outlines the procedure for requesting
a waiver of the tax imposed under §
4971(b).
Section 3. Conditions for Waiver
The tax imposed on an employer under
§ 4971(b) for failure to meet the mini-
mum funding standards with respect to a
defined benefit plan is waived for all ap-
plicable years, if the four conditions enu-
merated below are satisfied:
.01 The plan is subject to Title IV of
ERISA and is terminated in a standard ter-
mination under section 4041 of ERISA.
.02 Plan participants are not entitled to
any portion of residual assets remaining
after all liabilities of the plan to participants
and their beneficiaries have been satisfied.
.03 Excise taxes that have been or
could be imposed under § 4971(a) of the
Code have been paid for all taxable years,
including the taxable year related to the
year of plan termination.
.04 All applicable forms in the 5500 se-
ries, including Schedules B (Actuarial In-
formation), have been filed for the plan
for all plan years including the year of
plan termination.
Section 4. Effective Date
This procedure applies to the excise
taxes under § 4971(b) of the Code with
respect to plans terminating with termina-
tion dates under section 4041 of ERISA
that occur on or after January 1, 2000.
Drafting Information
The principal author of this revenue
procedure is Bill Kerr of the Tax Exempt
and Government Entities Division. For
further information regarding this revenue
procedure, call Employee Plans Taxpayer
Assistance at (202) 622-6076 (not a toll
free number) between 2:30 and 3:30 East-
ern time, Monday through Thursday. Mr.
Kerr’s number is (202) 622-8055 (also
not a toll free number).
March 13, 20007662000–11 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous

Notice of Proposed Rulemaking
and Notice of Public Hearing
Corporate Tax Shelter
Registration
REG–110311–98
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Cross-reference notice of pro-
posed rulemaking and notice of public
hearing.
SUMMARY: In T.D. 8876, page 753, the
IRS is issuing temporary regulations requir-
ing the registration of confidential corporate
tax shelters pursuant to section 6111(d) as
amended by section 1028(a) of the Tax-
payer Relief Act of 1997 (the Act). The
temporary regulations affect persons re-
sponsible for registering confidential corpo-
rate tax shelters and corporations participat-
ing in confidential corporate tax shelters.
The text of those temporary regulations also
serves as the text of these proposed regula-
tions. This document also gives notice of a
public hearing on this subject.
DATES: Written comments must be re-
ceived by May 31, 2000. Requests to
speak and outlines of topics to be dis-
cussed at the public hearing scheduled for
Tuesday, June, 20, 2000, from 10 a.m.
through 1 p.m. must be received by May
31, 2000.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–110311–98),
room 5226, Internal Revenue Service, POB
7604, Ben Franklin Station, Washington, DC
20044. Submissions may be hand delivered
between the hours of 8 a.m. and 5 p.m. to:
CC:DOM:CORP:R (REG–110311–98),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue NW., Washington
DC. Alternatively, taxpayers may submit
comments electronically via the Internet by
selecting the “Tax Regs” option of the IRS
Home Page or by submitting comments di-
rectly to the IRS Internet site at
http://www.irs.gov/tax_regs/regslist.html. A
public hearing will be held in the IRS Audito-
rium, Internal Revenue Building, 1111 Con-
stitution Avenue NW., Washington, DC.
FOR FURTHER INFORMATION CON-
TACT: Concerning the regulations,
Richard Castanon or Mary Beth Collins,
(202) 622-3070; concerning submissions
and the hearings, Guy Traynor, (202)622-
7180.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information con-
tained in this notice of proposed rulemak-
ing have been submitted to the Office of
Management and Budget for review in ac-
cordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)). Com-
ments on the collections of information
should be sent to the Office of Manage-
ment and Budget, Attn: Desk Officer for
the Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer, OP:FS:FP,
Washington, DC 20224. Comments on
the collections of information should be
received by May 1, 2000. Comments are
specifically requested concerning:
Whether the proposed collections of in-
formation is necessary for the proper per-
formance of the functions of the Internal
Revenue Service, including whether the
information will have practical utility;
The accuracy of the estimated burden
associated with the proposed collection of
information (see below);
How the quality, utility, and clarity of
the information to be collected may be
enhanced;
How the burden of complying with the
proposed collections of information may
be minimized, including through the
application of automated collection tech-
niques or other forms of information tech-
nology; and
Estimates of capital or start-up costs
and costs of operation, maintenance, and
purchase of service to provide infor-
mation.
The collections of information in this
proposed regulation are in
§301.6111–2T(b)(6), (e)(1)(ii)(A), (e)(2),
(e)(3), (g)(2)(ii) and (g)(2)(iii). This in-
formation is required to comply with the
registration requirements of section
6111(d) and to avoid the penalty provi-
sions of section 6707 for failing to regis-
ter a confidential corporate tax shelter.
This information will be used to ensure
compliance with the Federal tax laws.
The collections of information are manda-
tory. The likely respondents and record-
keepers are business or other for-profit in-
stitutions.
The burden for the collection of informa-
tion in §301.6111–2T(b)(6), (e)(1)(ii)(A),
(e)(2), and (e)(3) will be reflected on Form
8264. The burden for the collection of in-
formation in §301.6111–2T(g)(2)(ii) and
(iii) is as follows:
Estimated total annual reporting and/or
recordkeeping burden: 1 hour.
Estimated average annual burden hours
per respondent and/or recordkeeper: 15
minutes
Estimated number of respondents
and/or recordkeepers: 4
Estimated annual frequency of re-
sponses: On occasion
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
the Office of Management and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become
material in the administration of any in-
ternal revenue law. Generally, tax returns
and tax return information are confiden-
tial, as required by 26 U.S.C. 6103.
Background
The temporary regulations amend the
Income Tax Regulations (26 CFR part 1)
relating to section 6111. These regula-
tions provide the guidance necessary to
activate the registration requirements of
section 6111 and the penalty provisions of
section 6707 for confidential corporate
tax shelters.
The text of the temporary regulations
also serves as the text of these proposed
regulations. The preamble to the tempo-
rary regulations explains the regulations.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in Exec-
utive Order 12866. Therefore, a regula-
tory assessment is not required. It has
also been determined that section 553(b)
2000–11 I.R.B.767March 13, 2000
Part IV. Items of General Interest

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 regula-
tions will not have a significant economic
impact on a substantial number of small
entities. This certification is based upon
the fact that the persons responsible for
promoting and registering the transactions
described in the regulations are princi-
pally large publicly traded corporations,
and the burden is not significant as de-
scribed earlier in the preamble. There-
fore, a Regulatory Flexibility Analysis
under the Regulatory Flexibility Act (5
U.S.C. chapter 6) is not required. Pur-
suant to section 7805(f) of the Internal
Revenue Code, this notice of proposed
rulemaking will be submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on its
impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any written com-
ments (preferably a signed original and
eight (8) copies) or electronically gener-
ated comments that are submitted timely
to the IRS. The IRS and Treasury specifi-
cally request comments on the clarity of
the proposed regulations and how they
may be made easier to understand.
Further, the IRS and Treasury specifi-
cally request comments on (1) the scope
and breadth of the characteristics used in
the proposed regulations to identify trans-
actions structured for the avoidance or
evasion of Federal income tax; (2) the ex-
ceptions to registration provided for in the
proposed regulations; and (3) whether
particular types of transactions should be
identified as excepted from registration.
All comments will be available for public
inspection and copying.
A public hearing has been scheduled
for June 20, 2000, from 10 a.m. through 1
p.m., in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution Av-
enue NW., Washington, DC. Due to
building security procedures, visitors
must enter at the 1111 Constitution Av-
enue entrance, located between 10th and
12th streets. In addition, all visitors must
present photo identification to enter the
building. Because of access restrictions,
visitors will not be admitted beyond the
immediate entrance area more than 15
minutes before the hearing starts. For in-
formation about having your name placed
on the access list to attend the hearing, see
the “FOR FURTHER INFORMATION
CONTACT” section of this preamble.
The rules of 26 CFR 601.601(a)(3) apply
to the hearing. Persons who wish to present
oral comments at the hearing must submit
timely written comments and an outline of
the topics to be discussed and the time to be
devoted to each topic (signed original and
eight (8) copies) by May 31, 2000. A pe-
riod of 10 minutes will be allotted to each
person for making comments. An agenda
showing the scheduling of the speakers will
be prepared after the deadline for receiving
outlines has passed. Copies of the agenda
will be available free of charge at the hear-
ing.
Drafting Information
The principal authors of these regula-
tions are Mary Beth Collins and Richard
Castanon, Office of Assistant Chief Coun-
sel (Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated in
their development.
* * * * *
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 301 is pro-
posed to be amended as follows:
PART 301—PROCEDURE AND AD-
MINISTRATION
Paragraph 1. The authority citation for
part 301 is amended by adding an entry in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6111–2T also issued under
26 U.S.C. 6111(f)(4). * * *
Par. 2. Section 301.6111–2 is added to
read as follows:
§301.6111–2 Confidential corporate tax
shelters.
[The text of this proposed section is the
same as the text of §301.6111–2T pub-
lished elsewhere in T.D. 8876.]
Charles O. Rossotti,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on Feb-
ruary 28, 2000, 8:45 a.m. , and published in the issue
of the Federal Register for March 2, 2000, 65 F.R.
11272)
Notice of Proposed Rulemaking
and Notice of Public Hearing
Requirement to Maintain List of
Investors in Potentially Abusive
Tax Shelters
REG– 103736–00
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Cross-reference notice of pro-
posed rulemaking and notice of public
hearing.
SUMMARY: In T.D. 8875, page 761, the
IRS is issuing temporary regulations re-
quiring the maintenance of lists of in-
vestors in potentially abusive tax shelters
described in section 6112. The temporary
regulations affect organizers of poten-
tially abusive tax shelters. The text of
those temporary regulations also serves as
the text of these proposed regulations.
This document also gives notice of a pub-
lic hearing on this subject.
DATES: Written comments, requests to
speak and outlines of topics to be discussed
at the public hearing scheduled for Tues-
day, June, 20, 2000, from 10 a.m. through 1
p.m. must be received by May 31, 2000.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–103736–00),
room 5226, Internal Revenue Service, POB
7604, Ben Franklin Station, Washington, DC
20044. Submissions may be hand delivered
between the hours of 8 a.m. and 5 p.m. to:
CC:DOM:CORP:R (REG–103736–00),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue NW., Washington,
DC. Alternatively, taxpayers may submit
comments electronically via the Internet by
selecting the “Tax Regs” option of the IRS
Home Page or by submitting comments di-
rectly to the IRS Internet site at
http://www.irs.gov/tax_regs/regslist.html. A
public hearing will be held in the IRS Audito-
rium, Internal Revenue Building, 1111 Con-
stitution Avenue NW., Washington, DC.
FOR FURTHER INFORMATION CON-
TACT: Concerning the regulations,
Richard Castanon or Mary Beth Collins,
(202) 622-3070; concerning submissions
and the hearings, Guy Traynor, (202) 622-
7180.
SUPPLEMENTARY INFORMATION:
March 13, 20007682000–11 I.R.B.

Paperwork Reduction Act
The collections of information con-
tained in this notice of proposed rulemak-
ing have been submitted to the Office of
Management and Budget for review in ac-
cordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)). Com-
ments on the collections of information
should be sent to the Office of Manage-
ment and Budget, Attn: Desk Officer for
the Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer, OP:FS:FP,
Washington, DC 20224. Comments on
the collections of information should be
received by May 1, 2000. Comments are
specifically requested concerning:
Whether the proposed collections of in-
formation is necessary for the proper per-
formance of the functions of the IRS, in-
cluding whether the information will have
practical utility;
The accuracy of the estimated burden
associated with the proposed collection
of information (see below);
How the quality, utility, and clarity of
the information to be collected may be
enhanced;
How the burden of complying with the
proposed collections of information may
be minimized, including through the ap-
plication of automated collection tech-
niques or other forms of information tech-
nology; and
Estimates of capital or start-up costs and
costs of operation, maintenance, and pur-
chase of service to provide information.
The collections of information in this
proposed regulation are in §301.6112–1T,
A-4, A-13, A-14, A-17, and A-22. This
information is required to comply with
the list maintenance requirement of sec-
tion 6112 and to avoid the penalty provi-
sions of section 6708 for failing to main-
tain the investor list under section 6112.
This information will be used to ensure
compliance with the Federal tax laws.
The collections of information are manda-
tory. The likely respondents and record-
keepers are business or other for-profit in-
stitutions.
Estimated total annual reporting and/or
recordkeeping burden: 102 hours.
Estimated average annual burden hours
per respondent and/or recordkeeper: 2.04
hours
Estimated number of respondents
and/or recordkeepers: 50
Estimated annual frequency of re-
sponses: On occasion
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
the Office of Management and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
The temporary regulations amend tem-
porary Procedure and Administration reg-
ulations (26 CFR Part 301) regarding the
requirement to maintain lists of investors
in potentially abusive tax shelters under
section 6112. Section 6708 provides
penalties for failing to maintain the in-
vestor list under section 6112.
The text of the temporary regulations
also serves as the text of these proposed
regulations. The preamble to the tempo-
rary regulations explains the regulations.
Special Analyses
It has been determined that this notice of
proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866. Therefore, a regulatory as-
sessment is not required. It has also been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. chap-
ter 5) does not apply to these regulations. It
is hereby certified that the collection of in-
formation in these regulations will not have
a significant economic impact on a substan-
tial number of small entities. This certifica-
tion is based upon the fact that the persons
responsible for maintaining the investor
lists described in the regulations are princi-
pally large publicly traded corporations,
and the burden is not significant as de-
scribed earlier in the preamble. Therefore,
a Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chap-
ter 6) is not required. Pursuant to section
7805(f) of the Internal Revenue Code, this
notice of proposed rulemaking will be sub-
mitted to the Chief Counsel for Advocacy
of the Small Business Administration for
comment on its impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any written com-
ments (preferably a signed original and
eight (8) copies) or electronically gener-
ated comments that are submitted timely
to the IRS. The IRS and Treasury specifi-
cally request comments on the clarity of
the proposed regulations and how they
may be made easier to understand. All
comments will be available for public in-
spection and copying.
A public hearing has been scheduled
for June 22, 2000, from 10 a.m. to 1 p.m.,
in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue NW.,
Washington, DC. Due to building secu-
rity procedures, visitors must enter at the
1111 Constitution Avenue entrance, lo-
cated between 10th and 12th Streets. In
addition, all visitors must present photo
identification to enter the building. Be-
cause of access restrictions, visitors will
not be admitted beyond the immediate en-
trance area more than 15 minutes before
the hearing starts. For information about
having your name placed on the access
list to attend the hearing, see the “FOR
FURTHER INFORMATION CON-
TACT” section of this preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish to
present oral comments at the hearing must
submit timely written comments and an
outline of the topics to be discussed and the
time to be devoted to each topic (signed
original and eight (8) copies) by May 31,
2000. A period of 10 minutes will be allot-
ted to each person for making comments.
An agenda showing the scheduling of the
speakers will be prepared after the deadline
for receiving outlines has passed. Copies
of the agenda will be available free of
charge at the hearing.
Drafting Information
The principal authors of these regula-
tions are Mary Beth Collins and Richard
Castanon, Office of Assistant Chief Coun-
sel (Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated in
their development.
* * * * *
Proposed Amendments to the
Regulations
2000–11 I.R.B.769March 13, 2000

Accordingly, 26 CFR part 301, which
was proposed to be amended, is proposed
to be further amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 is amended by adding an entry in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6112–1 also issued under
26 U.S.C. 6112. * * *
Par. 2. Section 301.6112–1 as proposed
at 49 FR 34246 (August 29, 1984) is
amended as follows:
§301.6112–1 Questions and answers re-
lating to the requirement to maintain a list
of investors in potentially abusive tax
shelters.
[The text of the amendments to this
proposed section is the same as the text of
the amendments to §301.6112–1T pub-
lished elsewhere in T.D. 8875.]
Charles O. Rossotti,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on Feb-
ruary 28, 2000, 8:45 a.m., and published in the issue
of the Federal Register for March 2, 2000, 65 F.R.
11271)
Notice of Proposed Rulemaking
and Notice of Public Hearing
Tax Shelter Disclosure
Statements
REG–103735–00
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Cross-reference notice of pro-
posed rulemaking and notice of public
hearing.
SUMMARY: In T.D. 8877, page 747, the
IRS is issuing temporary regulations re-
quiring certain corporate taxpayers to file
a statement under section 6011 and main-
tain certain documents under section
6001. The temporary regulations affect
corporations participating in certain re-
portable transactions. The text of those
temporary regulations also serves as the
text of these proposed regulations. This
document also gives notice of a public
hearing on this subject.
DATES: Written comments, requests to
speak and outlines of topics to be dis-
cussed at the public hearing scheduled for
Tuesday, June, 20, 2000, from 10 a.m.
through 1 p.m. must be received by May
31, 2000.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–103735–00),
room 5226, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may be
hand delivered between the hours of 8
a.m. and 5 p.m. to: CC:DOM:CORP:R
(REG–103735–00), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC. Alterna-
tively, taxpayers may submit comments
electronically via the Internet by selecting
the “Tax Regs” option of the IRS Home
Page or by submitting comments directly
to the IRS Internet site at
http://www.irs.gov/tax_regs/regslist.html.
A public hearing will be held at 10 a.m.
on Tuesday, June 20, 2000, in the IRS Au-
ditorium, Internal Revenue Building,
1111 Constitution Avenue NW., Washing-
ton, DC.
FOR FURTHER INFORMATION CON-
TACT: Concerning the regulations,
Richard Castanon or Mary Beth Collins,
(202) 622-3070; concerning submissions
and the hearings, Guy Traynor, (202) 622-
7180.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information con-
tained in this notice of proposed rulemak-
ing have been submitted to the Office of
Management and Budget for review in ac-
cordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)). Com-
ments on the collections of information
should be sent to the Office of Manage-
ment and Budget, Attn: Desk Officer for
the Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer, OP:FS:FP,
Washington, DC 20224. Comments on
the collections of information should be
received by May 1, 2000. Comments are
specifically requested concerning:
Whether the proposed collections of in-
formation is necessary for the proper per-
formance of the functions of the Internal
Revenue Service, including whether the
information will have practical utility;
The accuracy of the estimated burden
associated with the proposed collection of
information (see below);
How the quality, utility, and clarity of
the information to be collected may be en-
hanced;
How the burden of complying with the
proposed collections of information
may be minimized, including through the
application of automated collection tech-
niques or other forms of information tech-
nology; and
Estimates of capital or start-up costs
and costs of operation, maintenance, and
purchase of service to provide informa-
tion.
The collections of information in this
proposed regulation are in §1.6011–4T(a),
(c), (d), and (e). This information is re-
quired to provide the Service with notice of
certain large corporate transactions that
provide tax savings in excess of certain dol-
lar thresholds. This information will be
used to ensure compliance with the Federal
tax laws. The collections of information
are mandatory. The likely respondents and
recordkeepers are business or other for-
profit institutions.
Estimated total annual reporting and/or
recordkeeping burden: 25 hours.
Estimated average annual burden hours
per respondent and/or recordkeeper: 30
minutes
Estimated number of respondents
and/or recordkeepers: 50
Estimated annual frequency of re-
sponses: Once annually
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
the Office of Management and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
The temporary regulations amend the
Income Tax regulations (26 CFR part 1)
relating to section 6011. The temporary
regulations contain rules relating to the
March 13, 20007702000–11 I.R.B.

filing and records requirements for certain
corporate taxpayers.
The text of the temporary regulations
also serves as the text of these proposed
regulations. The preamble to the tempo-
rary regulations explains the regulations.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in Ex-
ecutive Order 12866. Therefore, a regu-
latory 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 regula-
tions will not have a significant eco-
nomic impact on a substantial number of
small entities. This certification is based
upon the fact that the persons responsi-
ble for filing the statement required by
these regulations are principally large
publicly traded corporations, and the
burden is not significant as described
earlier in the preamble. 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 Internal Revenue
Code, this notice of proposed rulemak-
ing will be submitted to the Chief Coun-
sel for Advocacy of the Small Business
Administration for comment on its im-
pact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any written com-
ments (preferably a signed original and
eight (8) copies) or electronically gener-
ated comments that are submitted timely
to the IRS. The IRS and Treasury specifi-
cally request comments on the clarity of
the proposed regulations and how they
may be made easier to understand.
Further, the IRS and Treasury specifi-
cally request comments on (1) the scope
and breadth of the characteristics used in
the proposed regulations to identify re-
portable transactions; (2) the exceptions
to disclosure provided for in the proposed
regulations; and (3) whether particular
types of transactions should be identified
as excepted from disclosure. All com-
ments will be available for public inspec-
tion and copying.
A public hearing has been scheduled
for June 20, 2000, from 10 a.m. through 1
p.m., in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution Av-
enue NW., Washington, DC. Due to
building security procedures, visitors
must enter at the 1111 Constitution Av-
enue entrance, located between 10th and
12th streets. In addition, all visitors must
present photo identification to enter the
building. Because of access restrictions,
visitors will not be admitted beyond the
immediate entrance area more than 15
minutes before the hearing starts. For in-
formation about having your name placed
on the access list to attend the hearing, see
the “FOR FURTHER INFORMATION
CONTACT” section of this preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish to
present oral comments at the hearing must
submit timely written comments and an
outline of the topics to be discussed and
the time to be devoted to each topic
(signed original and eight (8) copies) by
May 31, 2000. A period of 10 minutes
will be allotted to each person for making
comments. An agenda showing the
scheduling of the speakers will be pre-
pared after the deadline for receiving out-
lines has passed. Copies of the agenda
will be available free of charge at the
hearing.
Drafting Information
The principal authors of these regula-
tions are Mary Beth Collins and Richard
Castanon, Office of Assistant Chief Coun-
sel (Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated in
their development.
* * * * *
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
Part 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.6011–4 is added to
read as follows:
§1.6011–4T Requirement of statement dis-
closing participation in certain transac-
tions by corporate taxpayers.
[The text of this proposed section is the
same as the text of §1.6011–4T published
in T.D. 8877.]
Charles O. Rossotti,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on Feb-
ruary 28, 2000, 8:45 a.m., and published in the issue
of the Federal Register for March 2, 2000, 65 F.R.
11269)
Adjustments Following Sales
of Partnership Interests;
Correction
Announcement 2000–13
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correction to final regulations.
SUMMARY: This document contains
corrections to T.D. 8847 (1999–52 I.R.B.
701), which was published in the Federal
Registeron Wednesday, December 15,
1999 (64 F.R. 69903), relating to adjust-
ments following the sale of partnership
interests.
DATES: These corrections are effective
December 15, 1999.
FOR FURTHER INFORMATION CON-
TACT: Matthew Lay, (202) 622-3050 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the sub-
ject of these corrections are under sec-
tions 743, 754, and 755 of the Internal
Revenue Code.
Need for Correction
As published, T.D. 8847 contains errors
which may prove to be misleading and are
in need of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (T.D. 8847), which were
the subject of FR Doc. 99–32400, is cor-
rected as follows:
1. On page 69904, column 1, in the
preamble under the paragraph heading
“Explanation of Revisions and Summary
2000–11 I.R.B.771March 13, 2000

of Contents”, paragraph 1.(c), the last
line, the language “after December 15,
1999.” is corrected to read “on or after
December 15, 1999.”.
2. On page 69905, column 2, in the
preamble under the paragraph heading “4.
Elections Under Section 754”, lines 9 and
10, the language “previously were made,
the IRS and Treasury believe that it is ap-
propriate to” is corrected to read “previ-
ously were made, the IRS and the Trea-
sury Department believe that it is
appropriate to”.
3. On page 69906, column 2, in the
preamble under the paragraph heading
“Special Analyses”, the paragraph is cor-
rected to read as follows:
“It has been determined that these final
regulations are not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assess-
ment is not required. It has been deter-
mined that a final regulatory flexibility
analysis is required for the collection of
information in this Treasury decision
under 5 U.S.C. 604. This analysis is set
forth below under the heading “Final
Regulatory Flexibility Act Analysis.”
Pursuant to section 7805(f) of the Internal
Revenue Code, the notice of proposed
rulemaking preceding these regulations
was submitted to the Chief Counsel for
Advocacy of the Small Business Admin-
istration for comment on their impact on
small business. No comments were re-
ceived regarding the impact of the regula-
tions on small business.”
4. On page 69906, column 2, in the
preamble, the paragraph heading “Sum-
mary of Final Regulatory Flexibility Act
Analysis” is corrected to read “Final Reg-
ulatory Flexibility Act Analysis.”
§1.743–1 [Corrected]
5. On page 69912, column 1,
§1.743–1(h)(2)(iv), line 3 of the introduc-
tory text, the language “paragraph (h):” is
corrected to read “paragraph (h)(2):”.
6. On page 69912, column 1,
§1.743–1(h)(2)(iv), the last sentence of
paragraph (ii) in the Exampleis corrected
to read as follows:
§1.743–1 Optional adjustment to basis of
partnership property.
* * * * *
(h) * * *
(2) * * *
(iv) * * *
Example. * * *
(ii) * * * Under paragraph (h)(2)(i) of this sec-
tion, X’s basis in Asset 1 equals $90 (PRS’s common
basis in the asset, $60, plus the gain recognized by
PRS under section 351(b)(1), $15, plus A’s basis ad-
justment under section 743(b), $20, less the portion
of the adjustment which reduced A’s gain, $5).
* * * * *
§1.754–1 [Corrected]
7. On page 69916, column 2,
§1.754–1(c)(2), the paragraph heading
“Revocations made for first taxable year
ending after December 15, 1999.” is cor-
rected to read “Revocations effective on
December 15, 1999.”.
8. On page 69916, column 2,
§1.754–1(c)(2), line 7, the language “15,
1999, may revoke such election by” is
corrected to read “15, 1999, may revoke
such election effective for transfers or dis-
tributions occurring on or after December
15, 1999, by”.
§1.755–1 [Corrected]
9. On page 69917, column 2,
§1.755–1(b)(2)(ii) Example 2. (iii), the
third line from the bottom of the column,
the language “743(b), less ($125), amount
of the basis” is corrected to read “743(b),
less ($125), the amount of the basis”.
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on Feb-
ruary 23, 2000, 8:45 a.m., and published in the issue
of the Federal Register for February 24, 2000, 65
F.R. 9220)
Announcement 2000–14
Supplemental Information on
Treasury Bills for Publication
1212
Banks, brokers, and other middlemen
who report discount on Treasury bill re-
demptions on Form 1099-INT must use
the owner’s purchase price, where avail-
able, to determine the amount of discount
to report. This information can usually be
obtained from the owner’s or middle-
man’s records. However, if the owner’s
purchase price is not available from exist-
ing records, the middleman must report
the discount as if the holder had pur-
chased the Treasury bill at its original
issue price. In this case, the middleman
must use as the original issue price the
noncompetitive issue price for the
longest-maturity Treasury bill maturing
on that date.
For Treasury bill redemptions when the
owner’s purchase price cannot be deter-
mined, the following list gives the non-
competitive issue prices and correspond-
ing amounts of discount to be reported on
Form 1099-INT for Treasury bills matur-
ing May through July 2000. This list,
which should also help middlemen deter-
mine any amounts subject to backup with-
holding, supplements the list that appears
in 1999 edition of Publication 1212, List
of Original Issue Discount Instruments.
Approved February 16, 2000.
Rosalie LaPlante,
Acting National Director, Tax Forms
and Publications Division.
March 13, 20007722000–11 I.R.B.

912795DU205/04/200011/04/199997.42725.73
912795DV005/11/200011/12/199997.42625.74
912795DW805/18/200011/18/199997.36426.36
*912795DX605/25/200005/27/199995.31946.81
912795DY406/01/200012/02/199997.30526.95
912795DZ106/08/200012/09/199997.32626.74
912795EA506/15/200012/16/199997.26527.35
*912795EB306/22/200006/24/199995.05649.44
912795EC106/29/200012/30/199997.21727.83
912795ER807/06/200001/06/200097.17628.24
912795ET407/13/200001/13/200097.26027.40
*912795ED907/20/200007/22/199995.23847.62
912795EU107/27/200001/27/200097.20927.91
2000–11 I.R.B.773March 13, 2000
SHORT-TERM UNITED STATES TREASURY BILLS
Issued at a Discount and Maturing May 2000 – July 2000
Noncompetitive
Issue Price (% ofDollar Amount of OID
Principal Amount)to be Reported (per
CUSIPMaturityIssue(Single-price format as$1000 of Maturity
NumberDateDateof November 2, 1998)Value)
* 52 week bill

March 13, 2000i2000–11 I.R.B.
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

2000–11 I.R.B.iiMarch 13, 2000
Numerical Finding List
1
Bulletins 2000–1 through 2000–10
Announcements:
2000–1, 2000–2 I.R.B. 294
2000–2, 2000–2 I.R.B. 295
2000–3, 2000–2 I.R.B. 296
2000–4, 2000–3 I.R.B. 317
2000–5, 2000–4 I.R.B. 427
2000–6, 2000–4 I.R.B. 428
2000–7, 2000–6 I.R.B. 586
2000–8, 2000–6 I.R.B. 586
2000–9, 2000–9 I.R.B. 733
2000–10, 2000–9 I.R.B. 733
2000–11, 2000–10 I.R.B. 739
Notices:
2000–1, 2000–2 I.R.B. 288
2000–2, 2000–9 I.R.B. 727
2000–3, 2000–4 I.R.B. 413
2000–4, 2000–3 I.R.B. 313
2000–5, 2000–3 I.R.B. 314
2000–6, 2000–3 I.R.B. 315
2000–7, 2000–4 I.R.B. 419
2000–8, 2000–4 I.R.B. 420
2000–9, 2000–5 I.R.B. 449
2000–10, 2000–5 I.R.B. 451
2000–11, 2000–6 I.R.B. 572
2000–12, 2000–9 I.R.B. 727
2000–13, 2000–9 I.R.B. 732
2000–14, 2000–10 I.R.B. 737
Proposed Regulations:
REG–208280–86, 2000–8 I.R.B. 654
REG–209135–88, 2000–8 I.R.B. 681
REG–208254–90, 2000–6 I.R.B. 577
REG–100276–97, 2000–8 I.R.B. 682
REG–101492–98, 2000–3 I.R.B. 326
REG–106012–98, 2000–2 I.R.B. 290
REG–103831–99, 2000–5 I.R.B. 452
REG–103882–99, 2000–8 I.R.B. 706
REG–105089–99, 2000–6 I.R.B. 580
REG–105279–99, 2000–8 I.R.B. 707
REG–105606–99, 2000–4 I.R.B. 421
REG–111119–99, 2000–5 I.R.B. 455
REG–113572–99, 2000–7 I.R.B. 624
REG–116048–99, 2000–6 I.R.B. 584
REG–116567–99, 2000–5 I.R.B. 463
REG–116704–99, 2000–3 I.R.B. 325
REG–100163–00, 2000–7 I.R.B. 633
Railroad Retirement Quarterly Rate:
2000–9, I.R.B. 721
Revenue Procedures:
2000–1, 2000–1 I.R.B. 4
2000–2, 2000–1 I.R.B. 73
2000–3, 2000–1 I.R.B. 103
2000–4, 2000–1 I.R.B. 115
2000–5, 2000–1 I.R.B. 158
2000–6, 2000–1 I.R.B. 187
2000–7, 2000–1 I.R.B. 227
2000–8, 2000–1 I.R.B. 230
2000–9, 2000–2 I.R.B. 280
2000–10, 2000–2 I.R.B. 287
2000–11, 2000–3 I.R.B. 309
2000–12, 2000–4 I.R.B. 387
Revenue Procedures—continued:
2000–13, 2000–6 I.R.B. 515
2000–15, 2000–5 I.R.B. 447
2000–16, 2000–6 I.R.B. 518
2000–18, 2000–9 I.R.B. 722
2000–20, 2000–6 I.R.B. 553
Revenue Rulings:
2000–1, 2000–2 I.R.B. 250
2000–2, 2000–3 I.R.B. 305
2000–3, 2000–3 I.R.B. 297
2000–4, 2000–4 I.R.B. 331
2000–5, 2000–5 I.R.B. 436
2000–6, 2000–6 I.R.B. 512
2000–7, 2000–9 I.R.B. 712
2000–8, 2000–7 I.R.B. 617
2000–9, 2000–6 I.R.B. 497
2000–10, 2000–8 I.R.B. 643
2000–11, 2000–10 I.R.B. 734
Treasury Decisions:
8849, 2000–2 I.R.B. 245
8850, 2000–2 I.R.B. 265
8851, 2000–2 I.R.B. 275
8852, 2000–2 I.R.B.253
8853, 2000–4 I.R.B.377
8854, 2000–3 I.R.B.306
8855, 2000–4 I.R.B.374
8856, 2000–3 I.R.B.298
8857, 2000–4 I.R.B.365
8858, 2000–4 I.R.B.332
8859, 2000–5 I.R.B.429
8860, 2000–5 I.R.B.437
8861, 2000–5 I.R.B.441
8862, 2000–6 I.R.B.466
8863, 2000–6 I.R.B.488
8864, 2000–7 I.R.B.614
8865, 2000–7 I.R.B.589
8866, 2000–6 I.R.B.495
8867, 2000–7 I.R.B.620
8868, 2000–6 I.R.B.491
8869, 2000–6 I.R.B.498
8870, 2000–8 I.R.B.647
8871, 2000–8 I.R.B.641
8872, 2000–8 I.R.B.639
8873, 2000–9 I.R.B.713
8874, 2000–8 I.R.B.644
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1999–27 through
1999–52 is in Internal Revenue Bulletin 2000–1,
dated January 3, 2000.

March 13, 2000iii2000–11 I.R.B.
Finding List of Current Actions on
Previously Published Items
1
Bulletins 2000–1 through 2000–10
Announcements:
99–50
Modified by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
Notices:
88–125
Obsoleted by
T.D. 8870, 2000–8 I.R.B. 647
92–48
Obsoleted by
Notice 2000–11, 2000–6 I.R.B. 572
97–19
Modified by
Rev. Proc. 2000–1, 2000–1 I.R.B. 4
98–22
Obsoleted by
T.D. 8870, 2000–8 I.R.B. 647
98–52
Modified by
Notice 2000–3, 2000–4 I.R.B. 413
98–61
Modified and superseded by
Rev. Proc. 2000–15, 2000–5 I.R.B. 447
99–8
Obsoleted by
Rev. Proc. 2000–12, 2000–4 I.R.B. 387
Revenue Procedures:
80–18
Modified by
Rev. Proc. 2000–13, 2000–6 I.R.B. 515
89–9
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
89–13
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
90–21
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
91–66
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
92–13
Modified, amplified, and superseded by
Rev. Proc. 2000–11, 2000–3 I.R.B. 309
92–13A
Modified, amplified, and superseded by
Rev. Proc. 2000–11, 2000–3 I.R.B. 309
92–41
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
93–9
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
Revenue Procedures—Continued:
93–10
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
94–12
Modified, amplified, and superseded by
Rev. Proc. 2000–11, 2000–3 I.R.B. 309
94–42
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
96–13
Modified by
Rev. Proc. 2000–1, 2000–1 I.R.B. 4
98–22
Modified and superseded by
Rev. Proc. 2000–16, 2000–6 I.R.B. 518
98–27
Superseded by
Rev. Proc. 2000–12, 2000–4 I.R.B. 387
98–64
Superseded by
Rev. Proc. 2000–9, 2000–2 I.R.B. 280
99–1
Superseded by
Rev. Proc. 2000–1, 2000–1 I.R.B. 4
99–2
Superseded by
Rev. Proc. 2000–2, 2000–1 I.R.B. 73
99–3
Superseded by
Rev. Proc. 2000–3, 2000–1 I.R.B. 103
99–4
Superseded by
Rev. Proc. 2000–4, 2000–1 I.R.B. 115
99–5
Superseded by
Rev. Proc. 2000–5, 2000–1 I.R.B. 158
99–6
Superseded by
Rev. Proc. 2000–6, 2000–1 I.R.B. 187
99–7
Superseded by
Rev. Proc. 2000–7, 2000–1 I.R.B. 227
99–8
Superseded by
Rev. Proc. 2000–8, 2000–1 I.R.B. 230
99–13
Modified and superseded by
Rev. Proc. 2000–16, 2000–6 I.R.B. 518
99–31
Modified and superseded by
Rev. Proc. 2000–16, 2000–6 I.R.B. 518
99–49
Modified and amplified by
Rev. Rul. 2000–4, 2000–4 I.R.B. 331,
Rev. Rul. 2000–7, 2000–9 I.R.B. 712,and
Notice 2000–4, 2000–3 I.R.B. 313
99–51
Superseded by
Rev. Proc. 2000–3, 2000–1 I.R.B. 103
Revenue Procedures—Continued:
2000–6
Modified by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
2000–8
Modified by both
Rev. Proc. 2000–16, 2000–6 I.R.B. 518 and
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
Revenue Rulings:
88–36
Modified by
Rev. Proc. 2000–6, 2000–6 I.R.B. 512
98–30
Amplified and superseded by
Rev. Rul. 2000–8, 2000–7, I.R.B. 617
Treasury Decisions:
8734
Modified by
T.D. 8856, 2000–3, I.R.B. 298
8804
Modified by
T.D. 8856, 2000–3, I.R.B. 298
1
A cumulative list of current actions on previously
published items in Internal Revenue Bulletins
1999–27 through 1999–52 is in Internal Revenue
Bulletin 2000–1, dated January 3, 2000.

INTERNAL REVENUE BULLETIN
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