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Washington (Jan. 21, 2002) -- In a move designed to reduce taxpayer burden and permit time for additional clarification, the Treasury Department and the Internal Revenue Service have delayed the effective date for the revised taxpayer disclosure and promoter list maintenance regulations, originally issued in October 2002."Those who engage in or promote abusive transactions cannot be allowed to hide these transactions from scrutiny. At the same time, the requirements to disclose transactions and maintain lists of customers must be as clear and as administratable as possible," said Treasury Assistant Secretary for Tax Policy Pam Olson. "Requiring disclosure unnecessarily is burdensome to taxpayers and the IRS and will detract from the usefulness of the rules to the IRS's pursuit of potentially abusive transactions."
Treasury and the IRS are considering clarifications of the types of transactions that must be disclosed by taxpayers to the IRS. Taxpayers will be able to rely on these new definitions, or the existing definitions, for the period prior to when the new rules are issued in February.
Further, the list maintenance rules issued in October 2002 will not be effective until they are finalized in February. This delayed effective date, however, will not apply to designated tax avoidance transactions or to transactions that promoters must register with the IRS.
-- Electronic Accountant Newswire staff
