IRS notices on basket options, basket contracts; effective dates clarified

IRS clarifies effective dates

The IRS today released amended versions of notices issued in October 2015, to clarify the effective date for application of:

Related content

  • Notice 2015-73 [PDF 62 KB] concerning the types of transactions that are “basket options” and that are to be treated as “listed transactions” that must be disclosed
  • Notice 2015-74 [PDF 64 KB] concerning the types of transactions that are “basket contracts” and that are to be treated as “transactions of interest” that must be disclosed


Versions of these notices were released by the IRS in October 2015. Read a preliminary report about these notices: TaxNewsFlash-United States

Effective date clarification

In transmitting the amended versions of Notice 2015-73 and Notice 2015-74, the IRS transmittal message explains that the IRS received requests for clarification of the phrase “effective date of this notice” in sections 2.01 and 2.05 of the respective notices.  The IRS stated that it has amended sections 2.01 and 2.05 of each notice to replace the phrase “effective date of this notice” with January 1, 2011.

© 2016 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's new digital platform