“Transactions of Interest” Regs Finalized


Proposed regulations under section 6011 concerning disclosure of reportable transactions, which include the new category of “transactions of interest,” have been finalized. In general, the final regulations apply to transactions entered into on or after Aug. 3. However, the provision regarding transactions of interest applies to transactions entered into on or after Nov. 2, 2006. The IRS defines a transaction of interest as one it believes has a potential for abuse, but about which it lacks sufficient information to designate it a tax-avoidance tactic. On Aug. 14, in notices 2007-72 and 2007-73, the IRS identified its first two transactions of interest. In one, charitable contributions of real-estate interests are valued significantly beyond the interests’ purchase price and normal appreciation. In the other, grantor trusts cancel out gains and recognize losses as they “toggle” grantor status off and on.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.