§6707 — Failure to furnish information regarding reportable transactions

In determining whether the taxpayer had a prior opportunity to dispute his liability, the regulations distinguish between liabilities that are subject to deficiency procedures and those that are not. Where the assessments against the taxpayer are assessable penalties like pre- AJCA section 6707 penalties, the Commissioner issues no notice of deficiency because the deficiency procedures do not apply.

48, 61 n.9 (2007), we need not decide whether the mere offer ofa conference with Appeals in a sec.

We hold that the IRS did not comply with that approval requirement, and we will therefore grant LHDS's motion for summaryjudgment.

We hold that respondent may calculate the amount ofthe penalty using the tax shown on the return giving rise to the violation ofthe disclosure obligation.

Unlike interpretative rules, legislative rules have the force and effect of law. Id. at 96. The Sixth Circuit recently addressed respondent’s first argument, finding Notice 2007-83, entitled “Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits,” to be a legislative rule requiring the IRS to comply with notice-and-comment requirements under the APA. Mann Constr., Inc., 27 F.4th at 1143–44. Like the Sixth Circuit, we find Notice 2017-10 t

———— Docket Nos. 17038-18L, 17535-18L. Filed February 23, 2026. ————— Between 1999 and 2002, Ps marketed and sold certain tax avoidance strategies to clients without reporting those strategies as required by I.R.C. § 6111. R assessed penalties under I.R.C. § 6707 with respect to Ps. In correspondence with Ps, R offered Ps a meeting with IRS Appeals to dispute their liabilities for the assessed penalties. To circumvent the application of I.R.C. § 6330(c)(2)(B) and associated regulations, which pr

In Goddard the IRS assessed penalties under then section 6707 against two taxpayers.

The FPAA also asserts that the 20% penalty under section 6662A for underpayments of tax attributable to reportable transactions under section 6707A(c) is applicable to Mill Road 36.

Court of Appeals for the Ninth Circuit recently considered this question in the context of an assessable penalty under section 6707A, which, as the Ninth Circuit noted, is not subject to the Code’s deficiency procedures.

2022) (finding agent’s timely approval where supervisor signed approval nearly three months after revenue agent’s formal communication of proposed section 6707A penalty but before assessment), rev’g and remanding 154 T.C.

In considering supervisory approval of an assessable penalty under section 6707A, the Court of Appeals for the Ninth Circuit construed section 6751(b)(1) differently from the Tax Court, so that the burden on the IRS was less demanding.

Laidlaw’s Harley Davidson concerned when section 6751(b) requires supervisory approval for assessable penalties under section 6707A and concluded that approval can be timely provided just before their assessment.

In Laidlaw’s Harley Davidson, the Commissioner determined a section 6707A penalty against the taxpayer for failure to properly disclose a reportable transaction.

. This product was fairly short lived because the IRS learned about such deals and made them a listed transaction.17 See Rev. Rul. 2003-6, 2003-1 C.B. 286. 17 A listed transaction is one that has been identified as a “tax avoidance transaction.” See sec. 6707A(c)(2). Taxpayers are required to disclose these transactions on their returns, and promoters of these transactions must register them with the IRS. Schwab v. Commissioner, 136 T.C. 120, 123 (2011), aff’d, 715 F.3d 1169 (9th Cir. 2013). - 2

. This product was fairly short lived because the IRS learned about such deals and made them a listed transaction.17 See Rev. Rul. 2003-6, 2003-1 C.B. 286. 17 A listed transaction is one that has been identified as a “tax avoidance transaction.” See sec. 6707A(c)(2). Taxpayers are required to disclose these transactions on their returns, and promoters of these transactions must register them with the IRS. Schwab v. Commissioner, 136 T.C. 120, 123 (2011), aff’d, 715 F.3d 1169 (9th Cir. 2013). - 2

. This product was fairly short lived because the IRS learned about such deals and made them a listed transaction.17 See Rev. Rul. 2003-6, 2003-1 C.B. 286. 17 A listed transaction is one that has been identified as a “tax avoidance transaction.” See sec. 6707A(c)(2). Taxpayers are required to disclose these transactions on their returns, and promoters of these transactions must register them with the IRS. Schwab v. Commissioner, 136 T.C. 120, 123 (2011), aff’d, 715 F.3d 1169 (9th Cir. 2013). - 2

. This product was fairly short lived because the IRS learned about such deals and made them a listed transaction.17 See Rev. Rul. 2003-6, 2003-1 C.B. 286. 17 A listed transaction is one that has been identified as a “tax avoidance transaction.” See sec. 6707A(c)(2). Taxpayers are required to disclose these transactions on their returns, and promoters of these transactions must register them with the IRS. Schwab v. Commissioner, 136 T.C. 120, 123 (2011), aff’d, 715 F.3d 1169 (9th Cir. 2013). - 2

. This product was fairly short lived because the IRS learned about such deals and made them a listed transaction.17 See Rev. Rul. 2003-6, 2003-1 C.B. 286. 17 A listed transaction is one that has been identified as a “tax avoidance transaction.” See sec. 6707A(c)(2). Taxpayers are required to disclose these transactions on their returns, and promoters of these transactions must register them with the IRS. Schwab v. Commissioner, 136 T.C. 120, 123 (2011), aff’d, 715 F.3d 1169 (9th Cir. 2013). - 2

Exam proposed to assert, under section 6707, penalties totaling $1,608,126 for tax years 1998-2001.

tions. Sections 6671 through 6720 impose assessable penalties for such activities as promoting abusive tax shelters (sec. 6700), aiding and abet- ting understatements oftax (sec. 6701), failing to furnish information about report- able transactions (sec. 6707), and furnishing fraudulent statements to various par- ties (secs. 6690, 6720). And section 6663(a) imposes a civil fraud penalty equal to 75% ofan underpayment oftax due to fraud. These penalties can be extremely large relative to the cond

431 (2009) (considering whether the effective date ofsection 6707A precluded the application ofthe extended limitations period in section 6501(c)(10)).

In that regard, it is instructive to consider the reasons for enacting a "sister" section of6662A, section 6707A, which provides a penalty for failure to disclose reportable transactions: The Committee believes that the best way to combat tax shelters is to be aware ofthem.

Beer in which it seeks to assert against him penalties under section 6707 for failing to file information returns with respect to alleged tax shel- ters.

A listed transaction as defined in section 6707A(c) is a transaction that is the same as or substantially similar to one ofthe types oftransactions that the Commissioner has determined to be a tax avoidance transaction and has identified - 39 - [*39] in a written notice, regulation, or other published guidance as a listed transacti

A listed transaction as defined in section 6707A(c) is a transaction that is the same as or substantially similar to one ofthe types oftransactions that the Commissioner has determined to be a tax avoidance transaction and has identified - 39 - [*39] in a written notice, regulation, or other published guidance as a listed transacti

Beer in which it seeks to assert against him penalties under section 6707 for failing to file information returns with respect to alleged tax shel- ters.

Beer in which it seeks to assert against him penalties under section 6707 for failing to file information returns with respect to alleged tax shel- ters.

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

urn oftax) and the proper tax treatment ofsuch item. [Sec. 6662A(b)(1).] - 95 - A transaction is a reportable transaction for purposes ofsection 6662A ifit is either a "reportable transaction" or a "listed transaction" as those terms are defined in section 6707A(c). See sec. 6662A(b)(2), (d). As to the latter term, section 6707A(c)(2) generally defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction that the Commissionerhas identified as a

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

Section 6662A(d) refers us to section 6707A(c)(2) for the definition ofa listed transaction.

6707A(c)(2); see·also BLAK Invs. v: Commissioner, 133 T;C. 431, 445 (2009). Respondent claims that the transaction is substantially similar to the transaction described in Notice 2004-8, supra. The regulations defme the term "substantially similar" as "any transaction that is expected to obtain the same or similar types oftax consequences and

6707A(c)(2); see·also BLAK Invs. v: Commissioner, 133 T;C. 431, 445 (2009). Respondent claims that the transaction is substantially similar to the transaction described in Notice 2004-8, supra. The regulations defme the term "substantially similar" as "any transaction that is expected to obtain the same or similar types oftax consequences and

On- Novemb¯er 17, 2004, Niche sentalettets to the employers participating¿ in the Plan announcing* that the Plan had been split into singlse-employer welfare benefit plans SEPs or individually SEP) . 5 The feasons stated in the ietters for the donversion included more employer control over Plah rassets arid the concern that the Plan mig

supra,: we..conclude that'Benistar' Plan is a listed, transaction under section 6707A(c)(2) .

OPINION HAINES, Judge : This case is before the Court on respondent's motion and petitioner's cross-motion for partial summary judgment filed pursuant to Rule 121 .1 The issues are : (1) Whether the effective date of section 6707A precludes application of section 6501(c)(10) to the transaction at issue ; (2) whether the transaction at issue is a listed transaction ; and (3) whether the period of limitations for assessment of tax resulting from the adjustment of partnership items with respect to

R filed a Motion to Dismiss for Lack of jurisdiction and to Strike as to the Section 6707A Penalties .