Escolar Documentos
Profissional Documentos
Cultura Documentos
2007-33
August 13, 2007
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.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of court decisions, rulings, and procedures must be considered,
the Commissioner of Internal Revenue for announcing official and Service personnel and others concerned are cautioned
rulings and procedures of the Internal Revenue Service and for against reaching the same conclusions in other cases unless
publishing Treasury Decisions, Executive Orders, Tax Conven- the facts and circumstances are substantially the same.
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
The Bulletin is divided into four parts as follows:
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis. Part I.—1986 Code.
This part includes rulings and decisions based on provisions of
It is the policy of the Service to publish in the Bulletin all sub- the Internal Revenue Code of 1986.
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod- Part II.—Treaties and Tax Legislation.
ify, or amend any of those previously published in the Bulletin. This part is divided into two subparts as follows: Subpart A,
All published rulings apply retroactively unless otherwise indi- Tax Conventions and Other Related Items, and Subpart B, Leg-
cated. Procedures relating solely to matters of internal man- islation and Related Committee Reports.
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published. Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
Revenue rulings represent the conclusions of the Service on the included in this part are Bank Secrecy Act Administrative Rul-
application of the law to the pivotal facts stated in the revenue ings. Bank Secrecy Act Administrative Rulings are issued by
ruling. In those based on positions taken in rulings to taxpayers the Department of the Treasury’s Office of the Assistant Sec-
or technical advice to Service field offices, identifying details retary (Enforcement).
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements. Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be The last Bulletin for each month includes a cumulative index
relied on, used, or cited as precedents by Service personnel in for the matters published during the preceding months. These
the disposition of other cases. In applying published rulings and monthly indexes are cumulated on a semiannual basis, and are
procedures, the effect of subsequent legislation, regulations, published in the last Bulletin of each semiannual period.
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.
26 CFR 301.6404–4T: Listed transactions and undis- 622–7950 (not a toll-free call). Explanation of Provisions
closed reportable transactions (temporary).
SUPPLEMENTARY INFORMATION:
If an individual taxpayer files a Federal
T.D. 9333 income tax return on or before the due date
Background
for that return (including extensions), and
DEPARTMENT OF This document amends the Procedure if the IRS does not timely provide a no-
THE TREASURY and Administration Regulations (26 CFR tice to that taxpayer specifically stating the
Internal Revenue Service part 301) by adding rules under section taxpayer’s liability and the basis for that
26 CFR Part 301 6404(g) relating to the suspension of liability, then the IRS must suspend any
interest, penalties, additions to tax, or interest, penalty, addition to tax, or addi-
Application of Section 6404(g) additional amounts with respect to listed tional amount with respect to any failure
transactions or undisclosed reportable relating to the return that is computed by
of the Internal Revenue Code
transactions. Section 3305 of the Internal reference to the period of time the failure
Suspension Provisions Revenue Service Restructuring and Re- continues and that is properly allocable to
form Act of 1998, Public Law 105–206 the suspension period. A notice is timely
AGENCY: Internal Revenue Service
(112 Stat. 685, 743) (RRA 98), added if provided before the close of the eigh-
(IRS), Treasury.
section 6404(g) to the Code, effective for teen-month period (thirty-six month pe-
ACTION: Temporary regulations. taxable years ending after July 22, 1998. riod, in the case of notices provided after
Section 6404(g) generally suspends inter- November 25, 2007) beginning on the later
SUMMARY: This document contains est and certain penalties if the IRS does of the date on which the return is filed or
temporary regulations under section not contact a taxpayer regarding possi- the due date of the return without regard
6404(g)(2)(E) of the Internal Revenue ble adjustments to the taxpayer’s liability to extensions. The suspension period be-
Code on the suspension of any interest, within a specified period of time. Sec- gins on the day after the close of the eigh-
penalty, addition to tax, or additional tion 903(c) of the American Jobs Creation teen-month period (or thirty-six month pe-
amount with respect to listed transactions Act of 2004, Public Law 108–357 (118 riod) and ends twenty-one days after the
or undisclosed reportable transactions. Stat. 1418, 1652) (AJCA), excepted from IRS provides the notice. This suspension
The temporary regulations reflect changes the general interest suspension rules any rule applies separately with respect to each
to the law made by the Internal Rev- interest, penalty, addition to tax, or ad- item or adjustment. If, on or after De-
enue Service Restructuring and Reform ditional amount with respect to a listed cember 21, 2005, a taxpayer provides to
Act of 1998, the American Jobs Creation transaction or an undisclosed reportable the IRS an amended return or other signed
Act of 2004, the Gulf Opportunity Zone transaction, effective for interest accruing written document showing an additional
Act of 2005, the Tax Relief and Health after October 3, 2004. Section 303 of tax liability, then the eighteen-month pe-
Care Act of 2006, and the Small Business the Gulf Opportunity Zone Act of 2005, riod (or thirty-six month period) does not
and Work Opportunity Tax Act of 2007. Public Law 109–135 (119 Stat. 2577, begin to run with respect to the items that
The temporary regulations provide guid- 2608–09) (GOZA), modified the effective gave rise to the additional tax liability un-
ance to individual taxpayers who have date of the exception from the suspen- til that return or other signed written docu-
participated in listed transactions or undis- sion rules for certain listed and reportable ment is provided to the IRS.
closed reportable transactions. The text transactions. Section 426(b) of the Tax The general rule for suspension does
of the temporary regulations also serves Relief and Health Care Act of 2006, Pub- not apply to any interest, penalty, addi-
as the text of the proposed regulations lic Law 109–432 (120 Stat. 2922, 2975), tion to tax, or additional amount relating
est relating to a listed transaction or an 1, except that the letter was sent by the IRS in Febru- (C) Closed transactions. A transaction
ary 2006, and the closing agreement was tendered to is considered closed for purposes of this
undisclosed reportable transaction accru- the taxpayer in April 2006. For purposes of the ap-
ing on or before October 3, 2004, if the clause if, as of December 14, 2005, the
plication of section 6404(g)(2)(E), the taxpayer has
taxpayer has acted reasonably and in good acted reasonably and in good faith. Interest accruing
assessment of all federal income taxes for
faith. The IRS’ determination of whether a on or before October 3, 2004, relating to the trans- the taxable year in which the tax liability
taxpayer has acted reasonably and in good action in which the taxpayer participated will be sus- to which the interest relates is prevented
pended. by the operation of any law or rule of law,
faith will take into account all the facts Example 3. The taxpayer participated in a listed
and circumstances surrounding the trans- or a closing agreement under section 7121
transaction. In response to an offer of settlement ex-
action. The facts and circumstances in- tended by the IRS in August 2005, the taxpayer in-
has been entered into with respect to the
clude, but are not limited to, whether the formed the IRS of her interest in entering into a clos- tax liability arising in connection with the
taxpayer disclosed the transaction and the ing agreement on the terms proposed by the IRS. The transaction.
revenue agent assigned to the transaction calculated (c) [Reserved].
taxpayer’s course of conduct after being the taxpayer’s liability under the settlement and ten-
identified as participating in the transac- dered a closing agreement to the taxpayer in Novem- Kevin M. Brown,
tion, including the taxpayer’s response to ber 2005. The taxpayer executed the closing agree-
Deputy Commissioner for
opportunities afforded to the taxpayer to ment but failed to make any arrangement for pay-
ment of the agreed-upon liability stated in the closing Services and Enforcement.
settle the transaction, and whether the tax-
agreement. Taking into account all the facts and cir-
payer engaged in unreasonable delay at cumstances surrounding the transaction, the taxpayer Approved June 15, 2007.
any stage of the matter. did not act reasonably and in good faith. Interest ac-
(2) Presumption. If a taxpayer and cruing on or before October 3, 2004, relating to the Eric Solomon,
the IRS promptly enter into a settlement transaction in which the taxpayer participated will not Assistant Secretary of
agreement with respect to a transaction on be suspended. the Treasury (Tax Policy).
Example 4. The taxpayer participated in a listed
terms proposed by the IRS or, in the event transaction. In a letter sent by the IRS directly to the (Filed by the Office of the Federal Register on June 20, 2007,
of atypical facts and circumstances, on taxpayer in July 2005, the IRS extended an offer of 8:53 a.m., and published in the issue of the Federal Register
for June 21, 2007, 72 F.R. 34176)
terms more favorable to the taxpayer, and settlement. The July 2005 letter informed the tax-
the taxpayer has complied with the terms payer that, absent atypical facts and circumstances,
of that agreement without unreasonable the taxpayer should not expect resolution of the tax
issues on more favorable terms than proposed in the
delay, the taxpayer will be presumed to letter. The taxpayer declined the proposed settle-
have acted reasonably and in good faith ment terms of the letter and proceeded to Appeals
except in rare and unusual circumstances. to present what the taxpayer claimed were atypical
Rare and unusual circumstances must in- facts and circumstances. The administrative file did
Abbreviations
The following abbreviations in current use ER—Employer. PRS—Partnership.
and formerly used will appear in material ERISA—Employee Retirement Income Security Act. PTE—Prohibited Transaction Exemption.
EX—Executor. Pub. L.—Public Law.
published in the Bulletin.
F—Fiduciary. REIT—Real Estate Investment Trust.
FC—Foreign Country. Rev. Proc.—Revenue Procedure.
A—Individual.
FICA—Federal Insurance Contributions Act. Rev. Rul.—Revenue Ruling.
Acq.—Acquiescence.
FISC—Foreign International Sales Company. S—Subsidiary.
B—Individual.
FPH—Foreign Personal Holding Company. S.P.R.—Statement of Procedural Rules.
BE—Beneficiary.
F.R.—Federal Register. Stat.—Statutes at Large.
BK—Bank.
FUTA—Federal Unemployment Tax Act. T—Target Corporation.
B.T.A.—Board of Tax Appeals.
FX—Foreign corporation. T.C.—Tax Court.
C—Individual.
G.C.M.—Chief Counsel’s Memorandum. T.D. —Treasury Decision.
C.B.—Cumulative Bulletin.
GE—Grantee. TFE—Transferee.
CFR—Code of Federal Regulations.
GP—General Partner. TFR—Transferor.
CI—City.
GR—Grantor. T.I.R.—Technical Information Release.
COOP—Cooperative.
IC—Insurance Company. TP—Taxpayer.
Ct.D.—Court Decision.
I.R.B.—Internal Revenue Bulletin. TR—Trust.
CY—County.
LE—Lessee. TT—Trustee.
D—Decedent.
LP—Limited Partner. U.S.C.—United States Code.
DC—Dummy Corporation.
LR—Lessor. X—Corporation.
DE—Donee.
M—Minor. Y—Corporation.
Del. Order—Delegation Order.
Nonacq.—Nonacquiescence. Z —Corporation.
DISC—Domestic International Sales Corporation.
O—Organization.
DR—Donor.
P—Parent Corporation.
E—Estate.
EE—Employee. PHC—Personal Holding Company.
PO—Possession of the U.S.
E.O.—Executive Order.
PR—Partner.
Proposed Regulations:
Revenue Procedures:
1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2007–1 through 2007–26 is in Internal Revenue Bulletin
2007–26, dated June 25, 2007.
97-14
Modified and superseded by
Rev. Proc. 2007-47, 2007-29 I.R.B. 108
2002-9
Modified and amplified by
Rev. Proc. 2007-48, 2007-29 I.R.B. 110
Rev. Proc. 2007-53, 2007-30 I.R.B. 233
2004-42
Superseded by
Notice 2007-59, 2007-30 I.R.B. 135
2005-16
Modified by
Rev. Proc. 2007-44, 2007-28 I.R.B. 54
2005-66
Clarified, modified, and superseded by
Rev. Proc. 2007-44, 2007-28 I.R.B. 54
2006-25
Superseded by
Rev. Proc. 2007-42, 2007-27 I.R.B. 15
2006-27
Modified by
Rev. Proc. 2007-49, 2007-30 I.R.B. 141
2006-33
Superseded by
Rev. Proc. 2007-51, 2007-30 I.R.B. 143
1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2007–1 through 2007–26 is in Internal Revenue Bulletin 2007–26, dated June 25, 2007.
CUMULATIVE BULLETINS
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