IRS Extends the Deadline for Material Advisors to Comply with New Filing Requirements Under Section 6111

Thursday, February 24, 2005 - 7:15am

In Notice 2005-22 the Internal Revenue Service (IRS) extends the deadline for material advisors to comply with the new filing requirements under Section 6111 provided in Notice 2004-80. General partners and/or developers of low-income housing tax credit (LIHTC), historic rehabilitation or new markets tax credit (NMTC) partnerships or properties that closed after October 22, 2004 may have a filing requirement as a material advisor. According to Notice 2005-22 if a person becomes a material advisor after October 22, 2004, and on or before March 31, 2005, that material advisor must file the required return on or before April 30, 2005. The penalties for non-compliance can be very severe, so parties involved with partnership closings after October 22, 2004 are urged to read Notices 2004-80, 2005-17 and 2005-22.