“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.

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

Pronoun practice to help polish your prose

Using pronouns correctly in writing and speech can help you make a good impression. Try our 10-question quiz.