[Federal Register Volume 73, Number 246 (Monday, December 22, 2008)]
[Proposed Rules]
[Pages 78254-78258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30303]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-160872-04]
RIN 1545-BF59
Section 6707 and the Failure To Furnish Information Regarding
Reportable Transactions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document contains proposed regulations under section 6707
of the Internal Revenue Code (Code), which provide the rules relating
to the assessment of penalties against material advisors who fail to
timely file a true and complete return required under section 6111(a).
The regulations implement the amendments to section 6707 by the
American Jobs Creation Act and promote material advisors' compliance
with the regulations under section 6111. These regulations affect
material advisors responsible for disclosing reportable transactions
under section 6111.
DATES: Written or electronic comments and request for a public hearing
must be received by March 23, 2009.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-160872-04), room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
160872-04), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC 20224 or sent electronically via the
Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-
160872-04).
FOR FURTHER INFORMATION CONTACT: Matthew S. Cooper, (202) 622-4940 (not
a toll-free number); concerning submissions of comments and requests
for a public hearing, Oluwafunmilayo Taylor of the Publications and
Regulation Branch at (202) 622-7180 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed amendments to the Procedure and
Administration Regulations (26 CFR Part 301) under section 6707 of the
Internal Revenue Code. Section 6707 was originally added to the Code by
section 141(b) of the Tax Reform Act of 1984, Public Law 98-369, 98
Stat. 494. At that time, section 6707 imposed a penalty for failing to
timely register a tax shelter or for filing false or incomplete
information with respect to the tax shelter registration. Treasury
Regulation Sec. 301.6707-1T was issued shortly after section 6707
became law.
The American Jobs Creation Act of 2004, Public Law 108-357, 118
Stat. 1418 (AJCA), was enacted on October 22, 2004. AJCA section 816
amended section 6707 to impose a penalty on a material advisor who is
required to file a return under section 6111(a) with respect to any
reportable transaction, and who fails to file a timely return or who
files a return with false or incomplete information with respect to the
reportable transaction. Section 6707, as amended, is effective for
returns due after October 22, 2004. The amount of the penalty for
failing to timely file or filing a return with false or incomplete
information with respect to any reportable transaction other than a
listed transaction is $50,000. For listed transactions, the amount of
the penalty is the greater of (1) $200,000, or (2) 50 percent of the
gross income derived by the material advisor with respect to aid,
assistance, or advice that the material advisor provides with respect
to the listed transaction before the date the return is filed under
section 6111. If the penalty is imposed with respect to a listed
transaction and the failure or action subject to the penalty was
intentional, the penalty is the greater of (1) $200,000, or (2) 75
percent of the gross income derived by the material advisor with
respect to aid, assistance, or advice that the material advisor
provides with respect to the listed transaction before the date the
return is filed under section 6111. The provisions of section 6707A(d)
regarding rescission of the penalty apply to any penalty assessed under
section 6707.
To implement the pertinent provisions of the AJCA, the IRS and
Treasury Department issued interim guidance on section 6111 in Notice
2004-80 (2004-2 CB 963, December 13, 2004); Notice 2005-17 (2005-1 CB
606, February 22, 2005); Notice 2005-22 (2005-1 CB 756, March 21,
2005); and Notice 2006-6 (2006-1 CB 385, January 30, 2006) (see Sec.
601.601(d)(2)(ii)(b)). These notices provided guidance to a material
advisor required to file a return under section 6111, including rules
regarding the date by which the material advisor must file the return
and the information the material advisor must include on the return.
Subsequently, the IRS and Treasury Department proposed amendments to
the rules relating to the disclosure of reportable transactions by
material advisors under section 6111 (see Prop. Treas. Reg. Sec.
301.6111-3, 71 FR 64501) and finalized those proposed regulations as TD
9351 in the Federal Register (72 FR 43157). The IRS and Treasury
Department are now proposing rules relating to the AJCA amendments to
section 6707.
Rev. Proc. 2007-21, 2007-9 IRB 613, which was published on February
26, 2007, provides guidance to persons against whom a penalty under
section 6707 or 6707A is assessed regarding procedures for requesting
that the Commissioner of the Internal Revenue Service rescind all or a
portion of these penalties with respect to a reportable transaction
other than a listed transaction.
Explanation of Provisions
These proposed regulations provide rules reflecting the AJCA
amendments to the section 6707 penalty for the failure to timely file a
return under section 6111 or for filing a return with false or
incomplete information regarding reportable transactions. The scope of
the changes to the section 6707 penalty provisions by the AJCA
necessitates a change to the temporary regulations promulgated under
former section 6707.
Under these proposed revisions, a penalty under section 6707 may be
assessed against each material advisor required to file a return under
section 6111 who fails to file a timely return in accordance with Sec.
301.6111-3(e) or files a return with false or incomplete information.
Accordingly, if more than one material advisor is responsible for
filing a return under section 6111 with respect to the same reportable
transaction, a separate penalty under
[[Page 78255]]
section 6707 may be assessed against each material advisor who fails to
timely file a return or files a return with false or incomplete
information.
Additionally, Sec. 301.6707-1(b)(4) of these proposed regulations
provides that incomplete information means a Form 8918, ``Material
Advisor Disclosure Statement'' (or successor form), filed with the IRS
that does not provide the information required under Sec. 301.6111-
3(d). A return will not be considered incomplete when the information
not provided on the Form 8918 (or successor form) is immaterial or was
not provided due to mistake or accident after the exercise of
reasonable care. The proposed regulations also provide that material
advisors who complete the form to the best of their ability and
knowledge after the exercise of reasonable efforts to obtain the
information will not be considered to have filed an incomplete form
within the meaning of this section. A Form 8918 (or successor form),
however, will be considered intentionally incomplete (and, in the case
of a listed transaction, subject to the increased penalty imposed by
section 6707(b)) when it omits information required to be provided
under Sec. 301.6111-3(d) and contains a statement that the omitted
information will be provided upon request.
False information under proposed Sec. 301.6707-1(b)(5) means
information provided on a Form 8918 (or successor form) to the IRS that
is untrue or incorrect when the Form 8918 (or successor form) was
filed. Information filed with the IRS will not be considered false when
the return contains untrue or incorrect information by mistake or
accident after the exercise of reasonable care or when the untrue or
incorrect information is immaterial.
Under proposed Sec. 301.6707-1(b)(6), the failure to timely file
or the submission of false or incomplete information is intentional if
the material advisor knew of the obligation to file a return under
section 6111, and knowingly did not timely file a return with the IRS;
or filed a return knowing that it was false or incomplete. In the case
of a listed transaction, the failure to timely file a true and complete
return will not be considered intentional if the material advisor
remedies this failure by filing a true and complete return with the IRS
prior to the earlier of the date that any taxpayer files a Form 8886
identifying the material advisor with respect to the reportable
transaction in question or the date the IRS contacts the material
advisor concerning the reportable transaction. This rule is intended to
encourage material advisors to correct material defects in their
compliance with section 6111, and recognizes that by voluntarily
correcting material defects the material advisors demonstrate an intent
to comply with section 6111.
The proposed regulations in Sec. 301.6707-1(c)(2) state that a
separate penalty may be assessed against each material advisor for its
own failure to timely file the required return. If multiple material
advisors (all with filing obligations under section 6111) enter into a
designation agreement (within the meaning of Sec. 301.6111-3(f))
designating one material advisor to file the required return on behalf
of all parties to the agreement, the section 6707 penalty may be
imposed upon each party to the agreement if the material advisor
designated to file the return either fails to timely file a return or
files a return with false or incomplete information. In the case of a
listed transaction, if the designated material advisor fails to timely
file a true and complete return, a nondesignated material advisor will
not be considered to have intentionally violated its obligations under
section 6111 unless the nondesignated material advisor knew or should
have known that the designated material advisor would fail to timely
file a true and complete return.
Section 301.6707-1(d) of these proposed regulations provides
several examples illustrating the potential application of the section
6707 penalty. Included are examples showing that the gross income
derived by the material advisor will be determined in accordance with
Sec. 301.6111-3(b)(3)(ii) for purposes of calculating the amount of
the penalty with respect to a listed transaction.
Section 301.6707-1(e) of these proposed regulations restates the
existing authority of the Secretary to prescribe the procedures to
request rescission of a section 6707 penalty with respect to a
nonlisted reportable transaction by revenue procedure or other guidance
published in the Internal Revenue Bulletin. Rev. Proc. 2007-21
describes the procedures for requesting rescission of a penalty
assessed under section 6707, including the deadline by which a person
must request rescission; the information the person must provide in the
rescission request; the factors that weigh in favor of and against
granting rescission; where the person must submit the rescission
request; and the rules governing requests for additional information
from the person requesting rescission.
These proposed regulations provide factors that the Commissioner
(or the Commissioner's delegate) should take into account during the
determination whether to rescind all or a portion of any penalty
imposed under section 6707. The proposed regulations generally adopt
the list of factors stated in Rev. Proc. 2007-21, which factors are
consistent with the legislative history of section 6707. See H.R. Conf.
Rep. No. 755, 108th Cong., 2d Sess. at 599 (2004). The factors
identified in these proposed regulations do not represent an exclusive
list, and no single factor will be determinative of whether to grant
rescission in any particular case. Rather, the Commissioner (or the
Commissioner's delegate) will consider and weigh all relevant factors,
regardless of whether the factor is included in this list, and will
generally favor rescission when the relevant factors and circumstances
suggest that sustaining assessment of the penalty is against equity and
good conscience.
One additional factor identified in the temporary regulations
recently promulgated under section 6707A as weighing in favor of
granting rescission that is not proposed to be adopted for purposes of
rescission of the penalty under section 6707 is the extent to which the
penalty assessed is disproportionately larger than the tax benefit
received. The material advisor does not receive a tax benefit from the
reportable transaction, but rather benefits from the transaction
through the gross income derived for aiding, assisting, or advising on
the transaction. The threshold of gross income for status as a material
advisor under section 6111 in the case of a reportable transaction is
$50,000 if substantially all of the tax benefits from the transaction
are provided to natural persons (looking through any partnerships, S
corporations, or trusts). For all other nonlisted reportable
transactions, the threshold amount is $250,000. The gross income levels
necessary to be treated as a material advisor substantially ensure that
any penalty imposed upon a material advisor under section 6707 will not
be disproportionate to the benefit received by the material advisor.
Because it is the policy of the IRS to administer penalties in a
manner that promotes voluntary compliance with the tax laws, the fact
that a material advisor voluntarily files the form required under
section 6111 prior to the earlier of: (i) The date that any taxpayer
files a Form 8886 identifying the material advisor with respect to the
reportable transaction in question or (ii) the date the IRS contacts
the material advisor concerning the reportable transaction will weigh
strongly in favor of rescission. See IRS Policy Statement 20-1 (June
29, 2004).
[[Page 78256]]
The proposed regulations mirror Rev. Proc. 2007-21 in providing
that a rescission request is not the appropriate forum to contest
whether the elements necessary to support a penalty under section 6707
exist. That question is for the examining agent, the IRS Office of
Appeals, and the courts. A rescission determination is based on the
premise that a violation of section 6707 exists but, nonetheless, the
penalty should be rescinded (or abated). Accordingly, the proposed
regulations provide that the Commissioner (or the Commissioner's
delegate) will not consider whether the material advisor in fact failed
to comply with section 6111. Furthermore, these regulations provide
that the Commissioner (or the Commissioner's delegate) will not take
into consideration doubt as to liability for, or collectibility of, the
penalties in determining whether to rescind the penalty.
Proposed Effective Date
These regulations are proposed to apply to returns the due date of
which is after the date the Treasury decision adopting these rules as
final regulations is published in the Federal Register.
Special Analyses
It has been determined that these regulations are not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required. It also has been determined that
section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5)
does not apply to this regulation and because the regulation does not
impose a collection of information on small entities, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue Code, this regulation has been
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on the impact on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The IRS and Treasury Department request comments on the substance
of the proposed regulations, as well as on the clarity of the proposed
rules and how they can be made easier to understand. All comments
submitted by the public will be made available for public inspection
and copying. A public hearing will be scheduled if requested in writing
by any person that timely submits comments. If a public hearing is
scheduled, notice of the date, time, and place for the public hearing
will be published in the Federal Register.
Drafting Information
The principal author of these regulations is Matthew S. Cooper of
the Office of the Associate Chief Counsel (Procedure and
Administration).
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR Part 301 is proposed to be amended as follows:
PART 301--PROCEDURE AND ADMINISTRATION
Paragraph 1. The authority citation for part 301 continues to read
as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.6707-1 is added to read as follows:
Sec. 301.6707-1 Failure to furnish information regarding reportable
transactions.
(a) In general. A material advisor who is required to file a return
under section 6111(a) with respect to any reportable transaction, who
fails to file a timely return in accordance with Sec. 301.6111-3(e) or
who files a return with false or incomplete information with respect to
the reportable transaction, will be subject to a penalty. The amount of
the penalty for failing to timely file or filing a false or incomplete
return with respect to any reportable transaction other than a listed
transaction is $50,000. The amount of the penalty with respect to a
failure relating to any listed transaction is the greater of $200,000
or 50 percent of the gross income derived by the material advisor with
respect to aid, assistance, or advice that is provided with respect to
the listed transaction before the date the return is filed under
section 6111. If the failure or action subject to the penalty is with
respect to a listed transaction and is intentional, the penalty is the
greater of $200,000 or 75 percent of the gross income derived by the
material advisor with respect to aid, assistance, or advice that is
provided with respect to the listed transaction before the date the
return is filed under section 6111. For purposes of calculating the
amount of the penalty with respect to a listed transaction, the gross
income derived by the material advisor will be determined in accordance
with Sec. 301.6111-3(b)(3)(ii).
(b) Definitions--(1) Reportable transaction. The term ``reportable
transaction'' is defined in Sec. 1.6011-4(b)(1) of this chapter.
(2) Listed transaction. The term ``listed transaction'' is defined
in section 6707A(c) of the Code and Sec. 1.6011-4(b)(2) of this
chapter.
(3) Material advisor. The term ``material advisor'' is defined in
section 6111(b)(1) of the Code and Sec. 301.6111-3(b).
(4) Incomplete information. For purposes of this section,
incomplete information means a Form 8918, ``Material Advisor Disclosure
Statement'' (or successor form), filed with the IRS that does not
provide the information required under Sec. 301.6111-3(d). Information
filed with the IRS will not be considered incomplete when the
information not provided on the Form 8918 (or successor form) is
immaterial or was not provided due to mistake or accident after the
exercise of reasonable care. A material advisor who completes the form
to the best of their ability and knowledge after the exercise of
reasonable effort to obtain the information will not be considered to
have filed incomplete information within the meaning of this section. A
Form 8918 (or successor form) will be considered to provide incomplete
information when it omits information required to be provided under
Sec. 301.6111-3(d) and contains a statement that the omitted
information will be provided upon request. For listed transactions, a
Form 8918 (or successor form) that omits information required to be
provided under Sec. 301.6111-3(d) and contains a statement that the
omitted information will be provided upon request will be considered an
intentional submission of a return with incomplete information within
the meaning of paragraph (b)(6) of this section.
(5) False information. For purposes of this section, false
information means information provided on a Form 8918 (or successor
form) filed with the IRS that is untrue or incorrect when the Form 8918
(or successor form) was filed. False information does not include
information provided on a Form 8918 (or successor form) filed with the
IRS that is immaterial or that is untrue or incorrect due to a mistake
or accident after the exercise of reasonable care.
(6) Intentional. For purposes of this section, the failure to
timely file a return or the submission of a return with false or
incomplete information is intentional if--
[[Page 78257]]
(i) The material advisor knew of the obligation to file a return
and knowingly did not timely file a return with the IRS; or
(ii) The material advisor filed a return knowing that it was false
or incomplete.
(7) Derive. The term ``derive'' is defined in Sec. 301.6111-
3(c)(3).
(c) Assessment of penalty--(1) Individual liability. If there is
more than one material advisor who is responsible for filing a return
under section 6111 with respect to the same reportable transaction, a
separate penalty under section 6707 may be assessed against each
material advisor who fails to timely file or files a false or
incomplete return. The determination of whether the failure or action
subject to the penalty is intentional will also be made individually
for each material advisor with respect to the same reportable
transaction. The higher penalty will not apply to any material advisor
whose failure to file timely or whose furnishing of false or incomplete
information is unintentional. The failure to timely file a return, or
filing a return with false or incomplete information, will be
considered unintentional if the material advisor subsequently files a
true and complete return prior to the earlier of the date that any
taxpayer files a Form 8886, ``Reportable Transaction Disclosure
Statement'' (or successor form), identifying the material advisor with
respect to the reportable transaction in question or the date the IRS
contacts the material advisor concerning the reportable transaction.
(2) Designation agreements. A material advisor who is required to
file a return under section 6111 and who is a party to a designation
agreement within the meaning of Sec. 301.6111-3(f) is subject to a
penalty under section 6707 if the designated material advisor fails to
timely file a return or files a return with false or incomplete
information. In the case of a listed transaction, if the designated
material advisor fails to timely file a return, or files a return with
false or incomplete information, the nondesignated material advisor who
is a party to the designation agreement will not be treated as
intentionally failing to file the return, or intentionally filing a
return with false or incomplete information, unless the nondesignated
material advisor knew or should have known that the designated material
advisor would fail to timely file a true and complete return.
(d) Examples. The rules of paragraphs (a) through (c) of this
section are illustrated by the following examples:
Example 1. Advisor A becomes a material advisor as defined under
section 6111(b) and Sec. 301.6111-3(b) in the fourth quarter of
2009 with respect to a reportable transaction other than a listed
transaction, and Advisor B also becomes a material advisor in the
same quarter with respect to the same reportable transaction.
Subsequently, Advisors A and B fail to timely file the Form 8918.
Because the section 6707 penalty applies to each material advisor
independently, Advisors A and B each are subject to a penalty of
$50,000.
Example 2. Same as Example 1, except that Advisor B timely filed
the Form 8918 with the IRS Office of Tax Shelter Analysis (OTSA).
Advisors A and B did not enter into a designation agreement.
Accordingly, only Advisor A is subject to a $50,000 penalty.
Example 3. Advisor C becomes a material advisor to Client X on
January 5, 2009, with respect to a listed transaction. Advisor C
derives $400,000 in gross income from his advice to Client X because
he expects to receive that amount from Client X, even though he has
not yet received that amount. Advisor C unintentionally does not
file a Form 8918. On January 5, 2010, Advisor C becomes a material
advisor to Client Y with respect to the same type of listed
transaction. The gross income Advisor C expects to receive from his
advice to Client Y is $100,000. Advisor C does not become a material
advisor with respect to any other client and unintentionally does
not file a Form 8918. Advisor C is subject to a penalty of $250,000
(50 percent of the gross income he derived) under section 6707.
Example 4. Same as Example 3, except that Advisor C files the
Form 8918 on November 15, 2009, which is beyond the date prescribed
for filing the disclosure statement. Advisor C is subject to a
$200,000 penalty under section 6707 because, as of the date he filed
the Form 8918, the gross income Advisor C had received or expected
to receive with respect to advice relating to the listed transaction
did not include gross income for advice to Client Y.
Example 5. Same as Example 3, except that Advisor C files the
Form 8918 on February 15, 2010, which is beyond the date prescribed
for filing the disclosure statement. Advisor C is subject to a
$250,000 penalty under section 6707 because, as of the date he filed
the Form 8918, the gross income Advisor C had received or expected
to receive with respect to advice relating to the listed transaction
included gross income for advice to Client X and Client Y.
Example 6. Advisor D becomes a material advisor as defined under
section 6111(b) and Sec. 301.6111-3(b) in the first quarter of 2009
with respect to a reportable transaction other than a listed
transaction. Advisor D does not file a Form 8918 by April 30, 2009.
The transaction is then identified as a listed transaction in
published guidance on July 7, 2009. Advisor D knew that it had a new
obligation to file a Form 8918 by October 31, 2009, and
intentionally fails to file the Form 8918. Advisor D is subject to
only one penalty, in the amount of the greater of $200,000 or 75
percent of the gross income he derived from the transaction, for
intentionally failing to disclose the listed transaction in
accordance with Sec. 301.6111-3(d)(1) and (e).
(e) Rescission authority--(1) In general. The Commissioner (or the
Commissioner's delegate) may rescind the section 6707 penalty if--
(i) The violation relates to a reportable transaction that is not a
listed transaction and
(ii) Rescinding the penalty would promote compliance with the
requirements of the Internal Revenue Code and effective tax
administration.
(2) Requesting rescission. The Secretary may prescribe the
procedures for a material advisor to request rescission of a section
6707 penalty by revenue procedure or other guidance published in the
Internal Revenue Bulletin.
(3) Factors that weigh in favor of granting rescission. In
determining whether rescission would promote compliance with the
requirements of the Code and effective tax administration, the
Commissioner (or the Commissioner's delegate) will take into account
the following list of factors that weigh in favor of granting
rescission. This is not an exclusive list and no single factor will be
determinative of whether to grant rescission in any particular case.
Rather, the Commissioner (or the Commissioner's delegate) will consider
and weigh all relevant factors, regardless of whether the factor is
included in this list.
(i) The material advisor, upon becoming aware that it failed to
properly disclose a reportable transaction, filed a complete and
proper, albeit untimely, Form 8918 (or successor form). This factor
will weigh strongly in favor of rescission provided that the material
advisor files the form required under section 6111 prior to the earlier
of the date that any taxpayer files a Form 8886 identifying the
material advisor with respect to the reportable transaction in question
or the date the IRS contacts the material advisor concerning the
reportable transaction.
(ii) The material advisor's failure to properly disclose the
reportable transaction was due to an unintentional mistake of fact that
existed despite the material advisor's reasonable attempts to ascertain
the correct facts with respect to the transaction.
(iii) The material advisor has an established history of properly
disclosing other reportable transactions and complying with other tax
laws, including compliance with any requests made by the IRS under
section 6112, if applicable.
(iv) The material advisor demonstrates that the failure to include
on any return or statement any information required to be disclosed
[[Page 78258]]
under section 6111 arose from events beyond the material advisor's
control.
(v) The material advisor cooperates with the IRS by providing
timely information with respect to the transaction at issue that the
Commissioner (or the Commissioner's delegate) may request in
consideration of the rescission request. In considering whether a
material advisor cooperates with the IRS, the Commissioner (or the
Commissioner's delegate) will take into account whether the material
advisor meets the deadlines described in Rev. Proc. 2007-21 (or
successor document) (see Sec. 601.601(d)(2)(ii)(b)) for complying with
requests for additional information.
(vi) Assessment of the penalty weighs against equity and good
conscience, including whether the material advisor demonstrates that
there was reasonable cause for, and the material advisor acted in good
faith with respect to, the failure to timely file or to include on any
return any information required to be disclosed under section 6111. An
important factor in determining reasonable cause and good faith is the
extent of the material advisor's efforts to determine whether there was
a requirement to file the return required under section 6111. The
presence of reasonable cause, however, will not necessarily be
determinative of whether to grant rescission.
(4) Absence of favorable factors weighs against rescission. The
absence of facts establishing the factors described in paragraph (e)(3)
of this section weighs against granting rescission. The absence of any
one of these factors, however, will not necessarily be determinative of
whether to grant rescission.
(5) Factors not considered. In determining whether to grant
rescission, the Commissioner (or the Commissioner's delegate) will not
consider doubt as to liability for, or collectibility of, the
penalties.
(f) Effective/applicability date. The rules of this section apply
to returns the due date for which is after the date the Treasury
decision adopting these rules as final regulations is published in the
Federal Register.
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-30303 Filed 12-19-08; 8:45 am]
BILLING CODE 4830-01-P