[Federal Register Volume 65, Number 159 (Wednesday, August 16, 2000)]
[Rules and Regulations]
[Pages 49909-49913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20540]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 301

[TD 8896]
RIN 1545-AY37


Modification of Tax Shelter Rules

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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SUMMARY: These temporary regulations modify the rules relating to the 
filing by certain corporate taxpayers of a statement with their Federal 
corporate income tax returns under section 6011(a), the registration of 
confidential corporate tax shelters under section 6111(d), and the 
maintenance of lists of investors in potentially abusive tax shelters 
under section 6112. These regulations provide the public with 
additional guidance needed to comply with the disclosure rules, the 
registration requirement, and the list maintenance requirement 
applicable to tax shelters. The temporary regulations affect 
corporations participating in certain reportable transactions, persons 
responsible for registering confidential corporate tax shelters, and 
organizers of potentially abusive tax shelters. The text of these 
temporary regulations also serves as the text of the proposed 
regulations set forth in the notice of proposed rulemaking on this 
subject in the Proposed Rules section of this issue of the Federal 
Register.

DATES: Effective Date: These temporary regulations are effective August 
11, 2000.
    Applicability Date: For dates of applicability, see Secs. 1.6011-
4T(g), 301.6111-2T(h), and 301.6112-1T, A-22.

FOR FURTHER INFORMATION CONTACT: Catherine Moore, (202) 622-3080, (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collections of information contained in these regulations 
previously have been reviewed and approved by the Office of Management 
and Budget under control numbers 1545-1685 and 1545-1686. No material 
changes to these collections of information are made by these 
regulations.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid OMB control number.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material 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 parts 1 and 301 to provide modified 
rules relating to the disclosure of certain tax shelters by corporate 
investors on their Federal corporate income tax returns under section 
6011, the registration of confidential corporate tax shelters under 
section 6111, and the maintenance of lists of investors in potentially 
abusive tax shelters under section 6112.
    On February 28, 2000, the IRS issued temporary and proposed 
regulations regarding section 6011 (TD 8877, REG-103735-00), section 
6111 (TD 8876, REG-110311-98), and section 6112 (TD 8875, REG-103736-
00). The regulations were published in the Federal Register (65 FR 
11205, 65 FR 11215, 65 FR 11211) on March 2, 2000.

[[Page 49910]]

    Based on comments that have been received, the IRS and Treasury 
have determined that certain interim changes to the temporary and 
proposed regulations are warranted. The changes in the proposed rules 
are published elsewhere in this issue of the Federal Register. The 
interim changes are intended to clarify certain provisions of the 
regulations, address certain practical problems relating to compliance 
with the regulations, and make certain other changes relating to the 
scope of the regulations.
    It is anticipated that other changes will be made in the final 
regulations. The IRS and Treasury have determined that additional time 
is needed to evaluate a number of the comments and recommendations. The 
IRS and Treasury continue to invite comments on all provisions of the 
temporary and proposed regulations, including provisions modified by 
this document. Furthermore, to the extent that taxpayers or other 
persons believe that there are specific types of transactions for which 
disclosure is required under the regulations, and that such disclosure 
is not consistent with the purposes of the regulations, the IRS and 
Treasury solicit comments that identify such types of transactions and 
explain those concerns. Such comments will be taken into account in 
establishing the scope of the final regulations and will also assist 
the IRS and Treasury in determining whether there are classes of 
transactions that should be specifically excepted from disclosure under 
the final regulations.

Explanation of Provisions

1. Disclosure Statement Required for Certain Corporate Taxpayers

    The temporary regulations under section 6011 provide that every 
taxpayer that is required to file a return for a taxable year with 
respect to any tax imposed under section 11 and that has participated, 
directly or indirectly, in a reportable transaction shall attach a 
disclosure statement to its return for each taxable year for which the 
taxpayer's Federal income tax liability is affected by its 
participation in the reportable transaction. It has come to the 
attention of the IRS and Treasury that the temporary regulations under 
section 6011 may have technically failed to include insurance companies 
and mutual savings banks conducting life insurance business. The IRS 
and Treasury intended those corporations to be subject to the 
disclosure requirement in the regulations. The regulations are amended 
accordingly.

2. Record Retention Requirement for Certain Reportable Transactions

    The temporary regulations under section 6011 provide that a 
taxpayer must retain all documents relating to a reportable transaction 
until the expiration of the statute of limitations for the first 
taxable year for which a disclosure statement is filed with the 
taxpayer's tax return.
    The IRS and Treasury seek to clarify the record retention 
requirement. As modified, the temporary regulations provide that a 
taxpayer must retain a copy of all documents and other records related 
to a transaction subject to disclosure under this section that are 
material to an understanding of the facts of the transaction, the 
expected tax treatment of the transaction, or the corporation's 
decision to participate in the transaction.

3. Confidentiality

    Under section 6111(d), a confidential corporate tax shelter must be 
registered. In describing confidentiality, the temporary regulations 
under section 6111(d) provide that 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. An offer will also be considered made 
under conditions of confidentiality in the absence of any such 
understanding or agreement if any tax shelter promoter knows or has 
reason to know that the transaction is protected from disclosure or use 
in any other manner. However, unless the facts and circumstances 
clearly indicate otherwise, an offer is not considered made under 
conditions of confidentiality if the tax shelter promoter enters into a 
written agreement with each person who participates or discusses 
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.
    The IRS and Treasury understand that, in certain circumstances, 
limitations on disclosure of the structure or tax aspects of a 
transaction may be considered necessary to comply with Federal or state 
securities laws. Consequently, the temporary regulations under section 
6111(d) are modified to provide an exception for restrictions on 
disclosure of the structure or tax aspects of the transaction 
reasonably necessary to comply with those securities laws.
    The IRS and Treasury received comments inquiring whether an 
exclusivity agreement (i.e., an agreement requiring the offeree to pay 
a fee to a promoter if the offeree engages in the transaction, whether 
or not the offeree uses the services of that promoter) is a condition 
of confidentiality. It is the view of the IRS and Treasury that an 
exclusivity agreement is within the scope of section 6111(d)(2)(B) 
because it is a limitation on use, and the temporary regulations have 
been clarified to so provide. However, the regulations have also been 
clarified to provide that an exclusivity arrangement ordinarily will 
not result in an offer being treated as made under conditions of 
confidentiality if the tax shelter promoter provides express written 
authorization for disclosure. As modified, the written authorization 
rule is applicable if the promoter expressly authorizes each offeree to 
disclose the structure and tax aspects of the transaction to any and 
all persons, without limitation of any kind on such disclosure.
    In addition, the temporary regulations are modified to provide 
that, under section 6111(d)(2)(B), limitations on disclosure or use 
create a condition of confidentiality only if the limitations relate to 
the structure or tax aspects of the transaction and such limitations 
are for the benefit of any person other than the offeree.

4. Tax Shelter Promoter

    The temporary regulations under section 6111(d) provide that the 
term tax shelter promoter includes a tax shelter organizer under 
section 6111(e)(1) and Sec. 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 described in Sec. 301.6111-1T Q&A-33) or any person related 
(within the meaning of section 267 or 707) to such tax shelter 
organizer or such other person.
    The IRS and Treasury recognize that the definition of a promoter as 
currently worded implies that a person can be a promoter by 
participating in the organization, management or sale of a tax shelter 
in a way other than as described in section 6111(e)(1) and 
Sec. 301.6111-1T (Q&A-26 through Q&A-32). The regulations under section 
6111(d) are amended to clarify that a person is a promoter only if the 
person participates in the organization, management or sale of a tax 
shelter under the rules in section 6111(e)(1) and

[[Page 49911]]

Sec. 301.6111-1T (Q&A-26 through Q&A-33), or is related to such person 
under section 267 or 707(b).
    The regulations are also modified to clarify that only promoters 
that are classified as organizers under section 6111(e)(1) are required 
to register tax shelters.

5. 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 shelter and such other information as required by 
section 6112. See Sec. 301.6112-1T. The temporary regulations under 
section 6112 require that, in addition to the lists required for 
confidential corporate tax shelters, lists must also 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 section 6111(d)(1)(A) and 
Sec. 301.6111-2T(b), whether or not the transactions are offered under 
conditions of confidentiality.
    Section 6111(d)(1)(A) provides that the term tax shelter includes 
any entity, plan, arrangement, or transaction a significant purpose of 
the structure of which is the avoidance or evasion of Federal income 
tax for a direct or indirect participant which is a corporation. The 
temporary regulations cross-reference section 6111(d)(1)(A) to provide 
the standard for determining whether the structure of a transaction has 
a significant purpose of avoidance or evasion of Federal income tax. 
The temporary regulations are amended to provide that a transaction may 
be subject to the list maintenance requirement whether or not the 
transaction is offered to corporate investors. Thus, a list of 
noncorporate investors will be required to be maintained whether or not 
the transaction is ever offered to a corporate investor. However, as 
discussed below, the temporary regulations are modified to include fee 
and tax reduction thresholds for list maintenance.
    Two additional modifications are made to the temporary regulations. 
First, the definitions of organizer and seller are clarified for 
purposes of section 6112. Second, the procedure for designating a 
person to maintain the list under section 6112 is modified for 
transactions other than section 6111(c) shelters and projected income 
investments.

6. Tax Reduction and Fee Thresholds for Investor List Requirement of 
Section 6112

    The temporary regulations under section 6112 do not limit the 
investors who must be included on the list. In response to comments, 
the IRS and Treasury have determined that in certain cases organizers 
and sellers of interests in potentially abusive tax shelters should be 
required to include on the list only investors that meet fee and tax 
reduction thresholds. Accordingly, the temporary regulations under 
section 6112 are amended to provide that, for a potentially abusive tax 
shelter that is not required to be registered under section 6111, is 
not a listed transaction described in Sec. 301.6111-2T(b)(2), and is 
not a projected income investment as described in Sec. 301.6111-1T A-
57A, an organizer or seller of an interest in a shelter may, but is not 
required to, list an investor if the total consideration paid to all 
organizers and sellers with respect to such investor's acquisition of 
the interest is less than $25,000, or if the organizer reasonably 
believes that such investor's acquisition of the interest will not 
result in a reduction of the Federal income tax liability of any 
corporation or corporations that exceeds, or exceeds in the aggregate, 
$1 million in any single taxable year or a total of $2 million for any 
combination of taxable years and will not result in a reduction of the 
Federal income tax liability of any noncorporate taxpayer or taxpayers 
that exceeds, or exceeds in the aggregate, $250,000 in any single 
taxable year or a total of $500,000 for any combination of taxable 
years.

7. Effective Date

    The regulations are applicable August 11, 2000. However, in 
general, taxpayers may rely on the regulations after February 28, 2000.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory 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. Because these 
regulations impose no new collection of information on small entities, 
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 regulations will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Catherine Moore, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from the IRS and Treasury 
Department participated in their development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR parts 1 and 301 are 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 1.6011-4T is amended as follows:
    1. The first sentence of paragraph (a) is revised.
    2. Paragraph (d)(1), second sentence, is amended by removing the 
language ``LM:PF'' and adding ``LM:PFTG:OTSA'' in its place.
    3. Paragraphs (e) and (g) are revised.
    The revisions read as follows:


Sec. 1.6011-4T  Requirement of statement disclosing participation in 
certain transactions by corporate taxpayers (Temporary).

    (a) In general. Every taxpayer that is required to file a return 
for a taxable year with respect to a tax imposed under section 11, 594, 
801, or 831 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. * * *
* * * * *
    (e) Retention of documents. The taxpayer must retain a copy of all 
documents and other records related to a transaction subject to 
disclosure under this section that are material to an understanding of 
the facts of the

[[Page 49912]]

transaction, the expected tax treatment of the transaction, or the 
corporation's decision to participate in the transaction. Such 
documents must be retained until the expiration of the statute of 
limitations 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 requirement is in addition to any 
document retention requirements that section 6001 generally imposes on 
the taxpayer.) Such documents generally include, but are not limited 
to, the following: marketing materials related to the transaction; 
written analyses used in decision-making related to the transaction; 
correspondence and agreements between the taxpayer and any promoter, 
advisor, lender, or other party to the reportable transaction that 
relate to the transaction; documents discussing, referring to, or 
demonstrating the tax benefits arising from the reportable transaction; 
and documents, if any, referring to the business purposes for the 
reportable transaction.
* * * * *
    (g) Effective date. This section applies to Federal corporate 
income tax returns filed after February 28, 2000. However, paragraphs 
(a) and (e) of this section apply to Federal corporate income tax 
returns filed after August 11, 2000 and to documents and other records 
that the taxpayer acquires, prepares, or has in its possession on or 
after August 11, 2000. Taxpayers may rely on the rules in paragraphs 
(a) and (e) of this section for Federal corporate income tax returns 
filed after February 28, 2000, and for documents and other records that 
the taxpayer acquires, prepares, or has in its possession on or after 
February 28, 2000. Otherwise, the rules that apply with respect to 
Federal corporate income tax returns filed after February 28, 2000, and 
records that the taxpayer acquires, prepares, or has in its possession 
prior to August 11, 2000, are contained in Sec. 1.6011-4T in effect 
prior to August 11, 2000 (see 26 CFR part 1 revised as of April 1, 
2000).

PART 301--PROCEDURE AND ADMINISTRATION

    Par. 3. The authority citation for part 301 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *


    Par. 4. Section 301.6111-2T is amended as follows:
    1. Paragraph (b)(3)(ii) is amended by removing the word 
``corporate''.
    2. Paragraph (c) is amended as follows:
    a. The last two sentences of paragraph (c)(1) are revised.
    b. Paragraph (c)(2) is revised.
    c. Paragraph (c)(3) is added.
    3. Paragraphs (f) and (g)(1) are revised.
    4. Paragraph (h) is amended by adding three sentences at the end of 
the paragraph.
    The revisions and additions read as follows:


Sec. 301.6111-2T  Confidential corporate tax shelters (temporary).

* * * * *
    (c) * * * (1) * * * Pursuant to section 6111(d)(2)(B), an offer 
will also be considered made under conditions of confidentiality in the 
absence of any such understanding or agreement if any tax shelter 
promoter knows or has reason to know that the offeree's use or 
disclosure of information relating to the structure or tax aspects of 
the transaction is limited for the benefit of any person other than the 
offeree in any other manner, such as where the transaction is claimed 
to be proprietary or exclusive 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 offeree might participate or has agreed to participate, including 
an offeree's confidential communication with the offeree's attorney, is 
not itself a condition of confidentiality.
    (2) Securities law exception. An offer is not considered made under 
conditions of confidentiality if disclosure of the structure or tax 
aspects of the transaction is subject to restrictions reasonably 
necessary to comply with federal or state securities laws and such 
disclosure is not otherwise limited.
    (3) Presumption. Unless facts and circumstances clearly indicate 
otherwise, an offer is not considered made under conditions of 
confidentiality if the tax shelter promoter provides express written 
authorization to each offeree permitting the offeree (and each 
employee, representative, or other agent of such offeree) to disclose 
the structure and tax aspects of the transaction to any and all 
persons, without limitation of any kind on such disclosure.
* * * * *
    (f) Definition of tax shelter promoter. For purposes of section 
6111(d)(2) and this section, the term tax shelter promoter includes a 
tax shelter organizer and any other person who participates in the 
organization, management or sale of a tax shelter (as those persons are 
described in section 6111(e)(1) and Sec. 301.6111-1T (Q&A-26 through 
Q&A-33) or any person related (within the meaning of section 267 or 
707) to such tax shelter organizer or such other person.
    (g) Person required to register--(1) Tax shelter promoters. The 
rules in section 6111 (a) and (e) and Sec. 301.6111-1T (Q&A-34 through 
Q&A-39) determine who is required to register a confidential corporate 
tax shelter. A promoter of a confidential corporate tax shelter must 
register the tax shelter only if it is a person required to register 
under the rules in section 6111 (a) and (e) and Sec. 301.6111-1T (Q&A-
34 through Q&A-39).
* * * * *
    (h) * * * However, paragraphs (b)(3)(ii), (c)(1), (2) and (3), (f), 
and (g)(1) of this section apply to confidential corporate tax shelters 
in which any interests are offered for sale after August 11, 2000. The 
rules in paragraphs (b)(3)(ii), (c)(1), (2) and (3), (f), and (g)(1) of 
this section may be relied upon for confidential corporate tax shelters 
in which any interests are offered for sale after February 28, 2000. 
Otherwise, the rules that apply to confidential corporate tax shelters 
in which any interests are offered for sale after February 28, 2000, 
are contained in Sec. 301.6111-2T in effect prior to August 11, 2000 
(see 26 CFR part 301 revised as of April 1, 2000).

    Par. 5. Section 301.6112-1T is amended as follows:
    1. A-4(a) is revised.
    2. The last two sentences of A-5 are removed and a new sentence is 
added in their place.
    3. A-6 is amended as follows:
    a. Paragraph (b) is amended by removing the language ``and'' at the 
end of the paragraph.
    b. Paragraph (c) is amended by removing the period at the end of 
the paragraph and adding ``; and'' in its place.
    c. Paragraph (d) is added immediately after paragraph (c).
    4. The last sentence of A-7 is revised.
    5. A-8 is amended as follows:
    a. In A-8, introductory text and paragraphs (a) through (e) are 
redesignated as paragraph (a) introductory text and paragraphs (a)(1) 
through (a)(5), respectively.
    b. New paragraph (b) is added immediately after Example (2) in 
newly designated paragraph (a)(5).
    6. The last two sentences of A-9 are amended by removing the 
language ``paragraph (e)'' and adding ``paragraph(a)(5)'' in its place.
    7. One sentence is added at the end of A-10.
    8. A-11 is amended as follows:

[[Page 49913]]

    a. In A-11, introductory text and paragraphs (a) and (b) are 
redesignated as paragraph (a) introductory text and paragraphs (a)(1) 
and (a)(2), respectively.
    b. New paragraph (b) is added.
    9. A-17 is amended as follows:
    a. Paragraph (a)(3) is revised.
    b. Paragraph (c) is added.
    10. The first and second sentences of A-19 are amended by removing 
the language ``paragraph (d) or paragraph (e)'' and adding ``paragraph 
(a)(4) or (5)'' in its place.
    11. A-22 is amended by adding three sentences before the last 
sentence.
    The additions and revisions read as follows:


Sec. 301.6112-1T  Questions and answers relating to the requirement to 
maintain a list of investors in potentially abusive tax shelters 
(temporary).

* * * * *
    A-4.(a) Yes; for purposes of the list requirement, a tax shelter 
includes any tax shelter that is a projected income investment, as 
defined in Sec. 301.6111-1T A-57A, and any transaction a significant 
purpose of the structure of which is the avoidance or evasion of 
Federal income tax within the meaning of section 6111(d)(1)(A) and 
Sec. 301.6111-2T(b) (whether or not offered to any direct or indirect 
corporate participant). For this purpose, as under Sec. 301.6111-2T, 
the term transaction includes 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, including any series of related 
steps carried out as part of a prearranged plan.
* * * * *
    A-5. * * * In addition, an organizer is any other person who 
participates in the organization or management of the tax shelter 
within the meaning of Sec. 301.6111-1T A-28 or A-29, except those 
persons whose activities do not constitute participation in the 
organization or management of a tax shelter under Sec. 301.6111-1T A-30 
or A-33.
* * * * *
    A-6. * * *
    (d) Any other person who receives consideration in connection with 
another person's right to participate in a tax shelter, for services 
necessary to the organization or structure of such tax shelter (other 
than services that do not constitute participation in the organization 
or management of a tax shelter under Sec. 301.6111-1T A-30 or A-33), or 
for information that is integral to participation in such tax shelter.
* * * * *
    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 
organization or structure of such tax shelter (other than services that 
do not constitute participation in the organization or management of a 
tax shelter under Sec. 301.6111-1T A-30 or A-33), or for information 
that is integral to participation 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. * * *
    (b) An organizer may, but is not required to, list a person that 
acquired an interest in a potentially abusive tax shelter if the 
shelter is not subject to registration under section 6111, is not a 
listed transaction described in Sec. 301.6111-2T(b)(2), and is not a 
projected income investment described in Sec. 301.6111-1T A-57A, if the 
total consideration paid to all organizers and sellers with respect to 
such person's acquisition of the interest is less than $25,000, or if 
the organizer reasonably believes that such person's acquisition of the 
interest will not result in a reduction of the Federal income tax 
liability of any corporation or corporations that exceeds, or exceeds 
in the aggregate, $1 million in any single taxable year or a total of 
$2 million for any combination of taxable years and will not result in 
a reduction of the Federal income tax liability of any noncorporate 
taxpayer or taxpayers that exceeds, or exceeds in the aggregate, 
$250,000 in any single taxable year or a total of $500,000 for any 
combination of taxable years. For purposes of this paragraph (b), the 
fees paid by or to, and the tax savings of, persons related within the 
meaning of section 267 or section 707(b) are aggregated.
* * * * *
    A-10. * * * However, a seller may, but is not required to, list a 
person that is described in A-8(b) of this section.
* * * * *
    A-11. * * *
    (b) In the case of a confidential corporate tax shelter under 
section 6111(d) and Sec. 301.6111-2T or a tax shelter described in Q&A-
4 of this section (other than one required to be registered under 
section 6111(c) or a projected income investment as described in 
Sec. 301.6111-1T A-57A), the rules contained in A-11(a)(1), A-13(a)(2), 
the second sentence of A-13(b), A-13(c) and A-14 of this section do not 
apply.
* * * * *
    A-17. (a) * * *
    (3) The name, address, and TIN (as defined in section 7701(a)(41)) 
of each person 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 
transaction described in section 6111(d)(1)(A) and Sec. 301.6111-2T(b) 
whether or not the direct or indirect participant is a corporation, the 
name, address, and TIN of each investor and any indirect corporate 
participant in the shelter if known to the organizer or seller;
* * * * *
    (c) No information needs to be included on a list with regard to 
any tax shelter for which no person is an investor required to be 
included on the list under A-8(b) or A-10 of this section.
* * * * *
    A-22. * * * However, the rules in A-4(a), A-5, A-6(d), A-7, A-8(b), 
A-10, A-11(b), and A-17(a)(3) and (c) of this section apply to any 
interest acquired by an investor (within the meaning of paragraph (c) 
of A-6 of this section) in a potentially abusive tax shelter after 
August 11, 2000. The rules in A-4(a), A-5, A-6(d), A-7, A-8(b), A-10, 
A-11(b), and A-17(a)(3) and (c) of this section may be relied upon for 
any interest acquired by an investor (within the meaning of paragraph 
(c) of A-6 of this section) in a potentially abusive tax shelter after 
February 28, 2000. Otherwise, the rules that apply with respect to 
interests acquired in potentially abusive tax shelters after February 
28, 2000, are contained in Sec. 301.6112-1T in effect prior to August 
11, 2000 (see 26 CFR part 301 revised as of April 1, 2000). * * *

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
    Approved: August 8, 2000.
Jonathan Talisman,
Acting Assistant Secretary of the Treasury.
[FR Doc. 00-20540 Filed 8-11-00; 8:45 am]
BILLING CODE 4830-01-U