Bryan C. Skarlatos presented "Ethical Issues Raised By 'Transaction of Interest' Classifications" at the 52nd Annual Southern Federal Tax Institute

In the waning hours of the Obama administration, the IRS published two retroactive “transaction of interest” notices that arguably thwart two statutory inducements: Section 831(b) small captive insurance companies, and syndications of Section 170(h) conservation easements.

Do these notices administratively contract, if not repeal, enabling statutes? What do we as practitioners tell our clients about coping with past and ongoing participation in captives and conservation easements? Further, what are our ethical obligations in advising a client if we may be considered a “material advisor” obligated to disclose the identity of the client and the subject matter of what we thought was privileged advice? These and other questions were answered throughout the course of the presentation.