Limitations period, listed transactions not disclosed under section 6011

Listed transactions not disclosed under section 6011

The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9718) concerning the exception to the standard three-year limitations period for assessments, as provided under section 6501(c)(10), for listed transactions that a taxpayer failed to disclose as required under section 6011.

Related content

The final regulations [PDF 218 KB] adopt rules that were proposed in 2009, with four “substantive clarifications.”

  • The first concerns the interaction of the one-year limitations period on assessment after disclosure of a listed transaction and the general three-year limitations period. A sentence has been added to clarify that in no case will the limitations period be shorter than that period would have been without the one-year period.
  • The second clarifies when a disclosure will be considered a disclosure by a material advisor, so that the one-year limitations period will begin.
  • The third clarifies that information not furnished to the IRS in response to a section 6112 request will not trigger the one-year period, even if provided by a material advisor, unless the information is furnished to the IRS Office of Tax Shelter Analysis (OTSA) in instances when material advisors are liquidated or dissolved.
  • The fourth clarifies that if a material advisor provides certain required information but not information identifying the taxpayer as a person who entered into a listed transaction, the requirements of section 6501(c)(10)(B) are not met.


Section 6501(a) provides that in general if a return is filed, the IRS must make an assessment of tax with respect to that return within three years from the later of: (1) the date the return was filed or (2) the original due date of the return.

One of the exceptions to the general three-year rule is provided by section 6501(c)(10), which was added to the Code by the American Jobs Creation Act of 2004. That provision provides that if a taxpayer fails to disclose a listed transaction as required under section 6011, the time for making a tax assessment with respect to that transaction will end no earlier than one year after the earlier of: (1) the date on which the taxpayer furnishes the information required under section 6011, or (2) the date that a material advisor furnishes to the Treasury Secretary, upon written request, the information required under section 6112 with respect to the taxpayer related to the listed transaction.

If neither the taxpayer nor a material advisor furnishes the required information, the period of limitations on assessment will remain open, and the tax with respect to the listed transaction may be assessed at any time.

Rev. Proc. 2005-26 provided interim guidance on section 6501(c)(10) and set forth how taxpayers and material advisors are to disclose listed transactions that were not properly disclosed under section 6011 in order to trigger the one-year period under section 6501(c)(10).

In 2009, proposed regulations state that taxpayers may continue to rely on Rev. Proc. 2015-26 until temporary or final regulations are issued.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.