The final regulations adopt proposed regulations published in December 2022 with certain revisions.
The U.S. Treasury Department and IRS today released (T.D. 10007) identifying certain syndicated conservation easement transactions and substantially similar transactions as listed transactions, a type of reportable transaction.
Taxpayers use Form 8886,聽Reportable Transaction Disclosure Statement,聽to disclose information for each reportable transaction in they participate. Material advisors to any reportable transaction file Form 8918,聽Material Advisor Disclosure Statement,聽to disclose certain information about the reportable transaction.
The final regulations are effective on October 8, 2024.
Background
The聽final regulations adopt 聽published on December 8, 2022, with certain revisions. As noted in聽, which accompanied the proposed regulations鈥� release, the proposed regulations were issued in response to two court decisions holding that IRS notices identifying particular transactions as listed transactions did not comply with the Administrative Procedure Act (APA) and thus were invalid. Specifically, the announcement referenced the U.S. Tax Court鈥檚 recent decision in聽Green Valley Investors, LLC v. Commissioner, 159 T.C. No. 5 (2022) (invalidating Notice 2017-10). In addition, the announcement mentioned the decision earlier this year of the U.S. Court of Appeals for the Sixth Circuit in聽Mann Construction, Inc. v. United States, 27 F.4th 1138 (6th Cir. 2022) (invalidating Notice 2007-83). Announcement 2022-38 indicates that the Treasury Department and IRS disagree with these decisions, and that they are continuing to defend the validity of the existing listing notices in circuits other than the Sixth Circuit.
Under the final regulations, Notice 2017-10 is obsoleted for transactions occurring after the effective date of the final regulations.
Read the related IRS release鈥� (October 7, 2024)