ADMINISTRATIVE

T.D. 9109, page 519. Final regulations under sections 6662 and 6664 of the Code limit the defenses available to the imposition of the accuracy-related penalty when taxpayers fail to disclose reportable transactions or fail to disclose they have taken a position based upon a regulation being invalid. The regulations also clarify the existing regulations with respect to the facts and circumstances that the IRS will consider in determining whether a taxpayer acted with reasonable cause and in good faith in relying on an opinion or advice. The regulations provide that failure to disclose a reportable transaction strongly indicates that the taxpayer did not act in good faith.

T.D. 9111, page 518. Final regulations under section 6103 of the Code relate to the definition of agent for certain purposes. The regulations clarify that the term agent in certain provisions of section 6103 includes contractors.

February 23, 2004 2004-8 I.R.B.