Full Disclosure Proves to be Key in Closing Tax Transactions

ARLINGTON, Va., June 16 /PRNewswire-USNewswire/ -- Whether they intentionally fail to report specific transactions or overlook them innocently, taxpayers who do not properly disclose reportable transactions on their returns risk paying steep penalties: beginning at $10,000.  BNA's latest analysis, Reportable Transactions provides taxpayers and their advisors with a blueprint for understanding the "registration" and "list maintenance" rules under Internal Revenue Code sections 6111 and 6112 discusses the various penalties for noncompliance.

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Number 648 in BNA's U.S. Income Series, this Portfolio defines "reportable transactions" in detail, describes five categories (as well as two additional categories that have since been eliminated) of reportable transactions and 34 specific "listed transactions".  Included in the discussion is an entire chapter dealing with the new IRS-proposed federal income tax reporting requirements for 'uncertain tax positions,' as this new proposal should be of keen interest to subscribers given that the IRS is proposing expansive reporting requirements, with reporting to be made on a new IRS form.

In addition, Reportable Transactions provides an overview of the states—including California, Connecticut, New York, and Utah—that have enacted a reportable transaction regime.

Authors Todd C. Simmens, CPA, and James G. Hartford, Esq., examine both the historical and current reportable transaction rules under sections 6111 and 6112 as they existed before and after the enactment of the American Jobs Creation Act of 2004.  They also discuss the developments leading to the introduction of the first reportable transaction regime in 2000.

Mr. Simmens is Partner and National Director of Tax Controversy and Procedure for BDO Seidman, LLP, Woodbridge, NJ, and Washington, D.C.  Mr. Hartford is an attorney with the IRS Office of Chief Counsel (Procedure & Administration) in Washington, D.C.

"Identifying and disclosing reportable transactions is no minor issue, and the authors do a superb job answering questions taxpayers didn't even know they had," says BNA Tax & Accounting Executive Editor George Farrah. "They provide the thorough history—including the penalties added by the American Jobs Creation Act—and detailed analysis that will keep any conscientious taxpayer out of hot water."

About BNA Tax & Accounting

BNA Tax & Accounting is the foremost source of news, analysis, and practice tools for tax attorneys, estate planners, accountants, and corporate tax and financial accounting professionals. For more than 50 years, BNA Tax & Accounting has offered practitioners expert insights and guidance on every significant issue in tax planning and financial accounting. Written by practitioners for practitioners, BNA's award-winning Portfolios offer topic-driven, in-depth guidance on transactions designed to help tax professionals achieve new levels of excellence and client service. For more information on BNA's Federal Tax series of which this Portfolio is a part, go to http://www.bnatax.com/US-Income-Portfolios-p7874/ or call 800.372.1033.

SOURCE BNA Tax & Accounting