The IRS is engaged in extensive efforts to curb abusive tax shelter schemes and transactions. The Tax Exempt and Government Entities Division of the IRS, including the office of Employee Plans, participates in this IRS-wide effort by devoting substantial resources to the identification, analysis, and examination of abusive tax shelter schemes and promotions.
- Listed Transactions – Background
- Employee Plans Listed Transactions
- How Abusive Transactions Impact Availability of EPCRS
- Report an Abusive Transaction Involving a Retirement Plan
- Additional Resources
Listed Transactions – Background
The IRS finalized regulations on abusive tax shelters. The regulations provide that a taxpayer must disclose certain transactions, known as “listed transactions,” by filing a disclosure statement (Form 8886 PDF and instructions PDF) with its tax return. Form 8886-T PDF and instructions PDF should be used by tax-exempt entities in disclosing this information. The instructions include an explanation of the penalties if there is a failure to disclose a reportable transaction.