Tax Notes Quotes Charles Ruchelman on New Regulations Concerning Listed Transactions
Charles M. Ruchelman spoke with Tax Notes on the release of the final regulations by the Treasury and IRS regarding the penalties facing material advisers who do not provide upon request a list of reportable transactions and advisees. For the complete article, please visit Tax Notes' website (subscription required).
Excerpt taken from the article "Final Listed Transaction Regs Released" by Nathan Richman for Tax Notes.
Charles M. Ruchelman of Caplin & Drysdale Chtd. said, "The statute and the regulations should be interpreted and applied to produce cooperation and not a disproportionate penalty." He added that $10,000 per day is a hefty fine given the short time period to respond to the request.
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Ruchelman praised the final regs' removal of place of abode from the possible methods of delivery of the request by the IRS. The proposed regs had allowed delivery not only by certified or registered mail and hand delivery, but also by leaving the request at the material adviser's place of abode or place of business.
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Ruchelman criticized the rejection, in the final regs, of concerns raised over the counting of the 20 business days when a notice is mailed. He noted how one comment letter had asked that the 20-business-day period start three days after mailing, rather than on the day of mailing, to give the material adviser the full period to respond. "Given the uncertainties of the mail delivery in varying locations, the three-day addition for mailing makes a lot of sense," he said.