The IRS and Treasury issued proposed regulations on Thursday, Aug. 3, that identify certain monetized installment sale deals as listed transactions.
Under the proposed regulations, participants and material advisors in a monetized installment sale transaction would need to file disclosures with the IRS.
The IRS requires taxpayers to file Form 8886, Reportable Transaction Disclosure Statement, to disclose information for each reportable transaction in which they participate.
Material advisors must file Form 8918, Material Advisor Disclosure Statement, to disclose information about reportable transactions
The IRS listed monetized installment sales this year as part of the agency’s Dirty Dozen list of common tax scams and schemes.
The IRS will accept written comments regarding the proposed regulations by Tuesday, Oct. 3. The agency scheduled a public hearing for Thursday, Oct. 12. Read more.