118 STAT. 1582 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(b) DEFINITIONS.—For purposes of this section: ‘‘(1) MATERIAL ADVISOR.— ‘‘(A) IN GENERAL.—The term ‘material advisor’ means any person— ‘‘(i) who provides any material aid, assistance, or advice with respect to organizing, managing, pro moting, selling, implementing, insuring, or carrying out any reportable transaction, and ‘‘(ii) who directly or indirectly derives gross income in excess of the threshold amount (or such other amount as may be prescribed by the Secretary) for such advice or assistance. ‘‘(B) THRESHOLD AMOUNT.—For purposes of subpara graph (A), the threshold amount is— ‘‘(i) $50,000 in the case of a reportable transaction substantially all of the tax benefits from which are provided to natural persons, and ‘‘(ii) $250,000 in any other case. ‘‘(2) REPORTABLE TRANSACTION.—The term ‘reportable transaction’ has the meaning given to such term by section 6707A(c). ‘‘(c) REGULATIONS.—The Secretary may prescribe regulations which provide— ‘‘(1) that only 1 person shall be required to meet the requirements of subsection (a) in cases in which 2 or more persons would otherwise be required to meet such require ments, ‘‘(2) exemptions from the requirements of this section, and ‘‘(3) such rules as may be necessary or appropriate to carry out the purposes of this section.’’. (b) CONFORMING AMENDMENTS.—(1) The item relating to section 6111 in the table of sections for subchapter B of chapter 61 is amended to read as follows: ‘‘Sec. 6111. Disclosure of reportable transactions.’’. (2) So much of section 6112 as precedes subsection (c) thereof is amended to read as follows: ‘‘SEC. 6112. MATERIAL ADVISORS OF REPORTABLE TRANSACTIONS MUST KEEP LISTS OF ADVISEES, ETC. ‘‘(a) IN GENERAL.—Each material advisor (as defined in section 6111) with respect to any reportable transaction (as defined in section 6707A(c)) shall (whether or not required to file a return under section 6111 with respect to such transaction) maintain (in such manner as the Secretary may by regulations prescribe) a list— ‘‘(1) identifying each person with respect to whom such advisor acted as a material advisor with respect to such trans action, and ‘‘(2) containing such other information as the Secretary may by regulations require.’’. (3) Section 6112 is amended— (A) by redesignating subsection (c) as subsection (b), (B) by inserting ‘‘written’’ before ‘‘request’’ in subsection (b)(1) (as so redesignated), and (C) by striking ‘‘shall prescribe’’ in subsection (b)(2) (as so redesignated) and inserting ‘‘may prescribe’’.
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