Today the IRS released final regulations relating to the exception to the general three-year period of limitations on assessment under Section 6501(c)(10) for listed transactions that a taxpayer failed to disclose as required under Section 6011.  The final rules adopt the proposed regulations with four substantive clarifications.  Among these clarifications was the addition of language to Treas. Reg. §301.6501(c)-1(g)(1) to clarify the interaction of the one-year period of limitations on assessment after disclosure of a listed transaction under Section 6501(c)(10) and the general three-year period of limitations on assessment under Section 6501(a).

The final rules supersede Revenue Procedure 2005-26 for taxable years with respect to which the period of limitations on assessment under Section 6501 did not expire before publication of the final rules.  The final rules will be published in the Federal Register on March 31, 2015.  Revenue Procedure 2005-26 will continue to apply to taxable years with respect to the period of limitations on assessment expired on or after April 8, 2005, and before March 31, 2015, although as provided in the proposed regulations, taxpayers could rely on the proposed rules until publication of the final rules.