Treasury has issued final regulations under section 6707 relating to the penalty imposed on material advisors for failure to furnish information regarding reportable transactions. Proposed regulations had been issued in 2008. The regulations make some substantive changes to the proposed regulations including clarification that only one penalty will apply if a transaction is both a listed transaction and a reportable transaction other than a listed transaction, that an advisor is subject to a separate penalty for each transaction, and that gross income for purposes of determining the penalty only includes fees from a listed transaction. The regulations also provide guidance on rescission of the penalty under section 6707.
The regulations can be accessed via:TD 9686.pdf