Revenue Procedure 2008-20

Section 4. Request for Comments
The IRS and the Treasury Department
invite comments on implementation of the
public inspection requirement of section
6104(d)(1)(A)(ii), including comments
with respect to those schedules or attachments that should not be available for
public inspection when attached to Form
990–T. Comments should refer to Notice
2008–49 and be submitted to:
Internal Revenue Service
CC:PA:LPD:PR (Notice 2008–49)
Room 5203
P. O. Box 7604
Ben Franklin Station
Washington, DC 20044
Submissions may be hand delivered
Monday through Friday between the hours
of 8 a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
1111 Constitution Ave., N.W.
Washington, DC 20224
Attn: CC:PA:LPD:PR
(Notice 2008–49)
Alternatively, taxpayers may submit
comments electronically to notice.comments@irscounsel.treas.gov. Please include “Notice 2008–49” in the subject line
of any electronic communications.
All comments will be available for public inspection and copying.
Section 6. Drafting Information
The principal author of this notice is
Melinda Williams of the Exempt Organizations, Tax Exempt and Government Entities Division. For further information regarding this notice, contact Ms. Williams
at 202–283–9467 (not a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of
correct tax liability.
(Also: Part I, §§ 6011, 6111, 6112; 1.6011–4,
301.6111–3, 301.6112–1.)

Rev. Proc. 2008–20
SECTION 1. PURPOSE
This revenue procedure provides guidance relating to the obligation of material

May 19, 2008

advisors to prepare and maintain lists with
respect to reportable transactions under
§ 6112 of the Internal Revenue Code. In
particular, this revenue procedure allows
material advisors to use a form available
on the Internal Revenue Service website
for the purpose of maintaining the itemized statement component of the list under
§ 6112. See § 301.6112–1(b)(3)(i) of the
Procedure and Administration Regulations. The form is not required to be used
by a material advisor in order for that
material advisor to comply with the requirements of § 301.6112–1, but is offered
as an option for maintaining the list.
SECTION 2. BACKGROUND
Section 6112, as amended by the
American Jobs Creation Act of 2004,
P.L. 108–357, 188 Stat. 1418, requires
that each material advisor with respect
to any reportable transaction shall
maintain (in such manner as the Secretary
may by regulations prescribe) a list
identifying each person with respect to
whom the advisor acted as a material
advisor with respect to the transaction
and containing other information as the
Secretary may by regulations require.
Under § 301.6112–1(a), material advisors
are required to prepare and maintain a
list as described in the regulations and
are required to furnish the list to the
IRS upon written request by the IRS.
For reportable transactions for which a
material advisor makes a tax statement on
or after August 3, 2007 (and transactions
of interest entered into by a taxpayer on
or after November 2, 2006, with respect
to which a material advisor makes a tax
statement on or after November 2, 2006),
the list must include three components: an
itemized statement, a detailed description
of the transaction, and copies of certain
documents. Section 301.6112–1(b)(3). If
any component of the list is not in a form
that enables the IRS to determine without
undue delay or difficulty the required
information, the material advisor will not
be considered to have complied with the
list maintenance provisions in § 6112 and
§ 301.6112–1. Section 301.6112–1(e)(1).
Section 6708(a) provides that if any person
who is required to maintain a list fails to
make the list available to the IRS within 20
business days after the date of the written
request, the person shall pay a penalty of

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$10,000 for each day of the failure after
the expiration of the 20th business day.
Section 301.6112–1(b)(1) states that
the Commissioner in his discretion may
provide in published guidance a form or
method for maintaining and/or furnishing
the list. The IRS has received requests
to provide an optional format for the
itemized statement component of the list.
Consequently, under the authority of the
regulations, this revenue procedure allows
material advisors to use the form published on the IRS website for the purpose
of maintaining the itemized statement.
The form should simplify the method of
list maintenance with respect to the itemized statement and reduce the burden on
material advisors trying to comply with
the regulations.
SECTION 3. SCOPE
This revenue procedure applies to material advisors who are required to maintain
lists under § 6112.
SECTION 4. APPLICATION
.01 In general. Each material advisor,
with respect to any reportable transaction,
is required to prepare and maintain separate lists for each reportable transaction.
For reportable transactions for which a
material advisor makes a tax statement on
or after August 3, 2007 (and transactions
of interest entered into by a taxpayer on or
after November 2, 2006, with respect to
which a material advisor makes a tax statement on or after November 2, 2006), each
list must include three components: an
itemized statement, a detailed description
of the transaction, and copies of certain
documents. Section 301.6112–1(b)(3).
The list must be furnished to the IRS upon
written request in a form that enables the
IRS to determine without undue delay
or difficulty the information required in
§ 301.6112–1(b). In order to be in a position to timely produce the list required to
be maintained under § 301.6112–1, the list
should be maintained and updated on an
ongoing basis, rather than compiled after
the IRS makes a written request for the list.
Because the list must be furnished to the
IRS in a form that enables the IRS to determine without undue delay or difficulty
the information required, the list should be
organized in a manner in which the three

2008–20 I.R.B.

components of the list are maintained together in a coherent and logical manner.
Furthermore, the IRS may make targeted
list requests, for example, a request for a
list on a specific transaction only, in addition to general list requests which ask for
all the lists the material advisor is required
to maintain under § 301.6112–1.
.02 Method of list preparation and
maintenance.
(1) In general. At the material advisor’s discretion, the material advisor may
use the form associated with this revenue procedure, Form 13976, “Itemized
Statement Component of Advisee List”
(or successor form), located through the
forms and publications resource page
on the IRS website or located through

2008–20 I.R.B.

http://www.irs.gov/businesses/corporations/article/0,,id=97384,00.html, for the
purpose of preparing and maintaining the
itemized statement component of the list
with respect to a reportable transaction.
The form contains spaces for all of the elements required by § 301.6112–1(b)(3)(i).
Instructions for the use of the form also are
available on the IRS website. A material
advisor may use the form as a template
for creating a similar form, including a
spreadsheet, on a software program used
by the material advisor.
(2) Use of the form is not required. Material advisors are not required to use the
form associated with this revenue procedure (or a similar form or spreadsheet) in
order to comply with § 6112.

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SECTION 5. EFFECTIVE DATE
This revenue procedure is effective
May 1, 2008, the date this revenue procedure was released to the public.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Charles D. Wien of the Office
of Associate Chief Counsel (Passthroughs
& Special Industries). For further information regarding this revenue procedure,
contact Mr. Wien at (202) 622–3070 (not
a toll-free call).

May 19, 2008