Bulletin No. 2004-17 April 26, 2004

inflation adjustment factor and reference prices for the renewable electricity production credit under section 45 of the Code.

Notice 2004–30, page 828. S corporation tax shelter. This notice advises taxpayers and their representatives about a tax shelter in which a shareholder of an S corporation donates nonvoting stock of the S corporation to an organization described in section 1361(c)(6) of the Code that is not subject to tax on unrelated business income under section 511 or that has UBIT carry-over losses. The transaction is made in order to defer taxation on S corporation income. The notice notifies taxpayers and their representatives that the claimed tax benefits purportedly generated by these transactions are not allowable for federal income tax purposes. The notice also states that this transaction is a listed transaction and warns of the potential penalties that may be imposed if taxpayers participate in such a transaction.

Notice 2004–31, page 830. This notice identifies as a listed transaction under section 6111 of the Code certain equity financing structures using partnerships, special allocations of partnership items, and guaranteed payments that are entered into to avoid the limitations of section 163(j).