Disclosures Notice 2007–85 This notice provides guidance to material advisors required to file a disclosure

Disclosures
Notice 2007–85
This notice provides guidance to material
advisors required to file a disclosure
statement.

Disclosures
Notice 2007–85
This notice provides guidance to material
advisors required to file a disclosure
statement by October 31, 2007, under
§ 301.6111–3 of the Procedure and Administration
Regulations.
BACKGROUND
On August 3, 2007, the Internal
Revenue Service and Treasury Department
published final regulations under
§ 301.6111–3 in the Federal Register
(72 FR 43157) providing the rules relating
to the disclosure of reportable transactions
by material advisors under section 6111
of the Internal Revenue Code. See T.D.
9351, 2007–38 I.R.B. 616. In general,
these regulations apply to transactions
with respect to which a material advisor
makes a tax statement on or after August
3, 2007. However, these regulations apply
to transactions of interest entered into on
or after November 2, 2006, with respect
to which a material advisor makes a tax
statement on or after November 2, 2006.
The regulations provide that each material
advisor, with respect to any reportable
transaction, must file a return as
described in § 301.6111–3(d). Section
301.6111–3(d) provides that each material
advisor required to file a disclosure
statement under § 301.6111–3 must file
a completed Form 8918, “Material Advisor
Disclosure Statement” (or successor
form). The Form 8918 must be filed with
the Office of Tax Shelter Analysis (OTSA)
by the last day of the calendar month that
follows the end of the calendar quarter
in which the advisor became a material
advisor with respect to the reportable
transaction or in which the circumstances
necessitating an amended disclosure occur.
Prior to the publication of the final regulations,
material advisors were required
to disclose reportable transactions on Form
8264, “Application for Registration of a
Tax Shelter.” Notice 2004–80, 2004–2
C.B. 963, and Notice 2005–22, 2005–1
C.B. 756, described the manner in which
the Form 8264 was to be completed.
INTERIM PROVISION
The next due date for disclosures by
material advisors is October 31, 2007. As
of the date of release of this notice, Form
8918 has not yet been published. The IRS
anticipates that the Form 8918 will be published
soon.
Due to the unavailability of Form 8918,
a material advisor required to file a completed
Form 8918 by October 31, 2007,
will be treated as satisfying the disclosure
requirement of § 301.6111–3(d) if the
material advisor files Form 8264 instead.
If Form 8918 is published on or before
October 31, 2007, material advisors may
choose to use either Form 8918 or Form
8264 for disclosures required to be filed by
October 31, 2007. For disclosures required
to be filed after October 31, 2007, material
advisors must use Form 8918 (or successor
form) unless instructed otherwise by the
IRS. Reportable transactions disclosed on
the Form 8264 should be disclosed in the
manner described in Notice 2004–80 and
Notice 2005–22.
EFFECTIVE DATE
This notice is effective October 16,
2007, the date this notice was released to
the public.
DRAFTING INFO