DAR File No. 29437

Tax Commission, Auditing

R865-6F-37

Disclosure of Reportable Transactions and Material adviser List Pursuant to Utah Code Ann. Sections 59-1-1301 through 59-1-1309

NOTICE OF PROPOSED RULE

DAR File No.: 29437
Filed: 01/26/2007, 01:09
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed new section is necessary to implement the provisions of S.B. 139 (2006) for corporate franchise tax. (DAR NOTE: S.B. 139 (2006) is found at Chapter 237, Laws of Utah 2006, and was effective 01/01/2007.)

Summary of the rule or change:

The proposed new section indicates how a reportable transaction shall be disclosed to the commission by both a taxpayer and a material adviser; and that the list of persons a material adviser is required to maintain for federal purposes shall satisfy the state requirement for the list of persons a material adviser is required to maintain.

State statutory or constitutional authorization for this rule:

Sections 59-1-1301 through 59-1-1309

Anticipated cost or savings to:

the state budget:

Any fiscal impact was taken into account in S.B. 139 (2006).

local governments:

Any fiscal impact was taken into account in S.B. 139 (2006).

other persons:

Any fiscal impact was taken into account in S.B. 139 (2006).

Compliance costs for affected persons:

Under S.B. 139 (2006), persons who participate in a reportable transaction, and a material adviser are required to make certain disclosures to the commission. Since this disclosure is also required by the Internal Revenue Service (IRS), the commission will accept copies of the documents filed with the IRS.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated costs beyond copy and postage as the same information required by the IRS. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/19/2007

This rule may become effective on:

03/26/2007

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-6F. Franchise Tax.

R865-6F-37. Disclosure of Reportable Transactions and Material Advisor List Pursuant to Utah Code Ann. Sections 59-1-1301 through 59-1-1309.

(1) A taxpayer shall disclose a reportable transaction to the commission by:

(a) marking the box on the taxpayer's corporate franchise or income tax return indicating that the taxpayer has filed federal form 8886 with the Internal Revenue Service; and

(b) providing the commission a copy of the form described in Subsection (1)(a) upon the request of the commission.

(2)(a) A material advisor shall disclose a reportable transaction to the commission by attaching a copy of the federal form 8264, and any additional information that the material advisor submitted to the Internal Revenue Service, to the form prescribed by the commission.

(b) A material advisor shall provide the commission the information described in Subsection (2)(a) within 60 days after the form 8264 was required to be filed with the Internal Revenue Service.

(3)(a) The list of persons a material advisor is required to maintain under 26 C.F.R. Sec. 301.6112-1 shall satisfy the requirement for the list of persons a material advisor is required to maintain under Section 59-1-1307.

(b) If more than one material advisor is required to maintain a list of persons in accordance with Section 59-1-1307, the material advisor that maintained the list required by 26 C.F.R. Sec. 301.6112-1 shall maintain the list required by Section 59-1-1307.

 

KEY: taxation, franchises, historic preservation, trucking industries

Date of Enactment or Last Substantive Amendment: November 17, 2006

Notice of Continuation: April 3, 2002

Authorizing, and Implemented or Interpreted Law: 59-1-1301 through 59-1-1309