Notice 2015-73 and Notice 2015-74 revoke Notice 2015-47 and Notice 2015-48, respectively, and provide additional details on the types of transactions, referred to as “basket option contracts” and “basket contracts,” that are listed transactions or transactions of interest for purposes of Treas. Reg. § 1.6011-4 and sections 6111 and 6112 of the Code.

These new notices narrow the scope of the original guidance by specifically describing the tax benefits that identify a transaction as a transaction of interest.  Robert Kovacev, partner in Steptoe’s Washington office, commented, “By issuing these notices, the IRS is admitting that the previous notices were overbroad.”