Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5070 - List of Investors in Potentially Abusive Tax Shelters and Reportable Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Requirement to Furnish List of Investors in Potentially Abusive Tax Shelters
1) In General. For the period beginning July
				30, 2004 and ending October 22, 2004, under IITA Section 1405.6(a), any person
				required to maintain a list with respect to a "potentially abusive tax shelter"
				in accordance with
				26
				USC 6112 and
				26
				CFR 301.6112-1(2007) and who
				is required to furnish the list to the Internal Revenue Service shall furnish
				the list to the Department at the time and in the manner provided under
				subsection (b) of this Section.
				26 USC
				6111 and
				6112
				were amended by Public Law
				108-357 to delete any reference to "tax shelter".
				Accordingly, this subsection (a)(1) does not apply after October 22, 2004, the
				effective date of Public
				Law 108-357.
2) Special Rule for Listed Transactions. For
				the period beginning July 30, 2004 and ending January 10, 2008, under IITA
				Section 1405.6(b), any person required for federal income tax purposes to
				maintain a list with respect to a transaction entered into on or after February
				28, 2000 that becomes a listed transaction at any time shall furnish the list
				to the Department, regardless of whether the list is furnished to the Internal
				Revenue Service, at the time and in the manner provided under subsection (b) of
				this Section. IITA Section 1405.6(b) was repealed by Public Act 95-707.
				Accordingly, this subsection (a)(2) does not apply after January 10, 2008, the
				effective date of Public Act 95-707.
3) Nexus with this State. Furnishing an
				investor list with respect to the periods specified in this subsection (a) is
				required only if the potentially abusive tax shelter or the listed transaction
				has nexus with this State as determined under this subsection (a)(3).
A) Potentially Abusive Tax Shelters
i) Prior to January 11, 2008, IITA Section
				1405.6(d) provided that, if the transaction with respect to which list
				maintenance is required is a tax shelter (other than a listed transaction) as
				defined in
				26 USC
				6111, then the provisions of IITA Section
				1405.6(a) and subsection (a) of this Section do not apply unless the tax
				shelter is:
* Organized in Illinois,
* Doing Business in Illinois, or
* Deriving income from sources within Illinois.
ii) The requirements of this
				subsection (a)(3)(A) apply only to "tax shelters" and so apply only to
				potentially abusive tax shelters under IITA Section 1405.6(a) and subsection
				(a)(1), and not to listed transactions under IITA Section 1405.6(b) or
				subsection (a)(2). As noted in subsection (a)(1), subsection (a)(1) has no
				application after October 22, 2004.
B) Listed Transactions. A listed transaction
				has sufficient nexus with Illinois to be subject to the requirement to furnish
				investor lists if, at the time the transaction is entered into, the transaction
				has one or more investors that is an Illinois taxpayer.
4) The term "listed transaction" shall have
				the same meaning as defined in Section
				100.5060
				of Subpart N of this Part.