Common use of Listed Transactions and Reportable Transactions Clause in Contracts

Listed Transactions and Reportable Transactions. The Account Owner acknowledges that certain transactions are or may be identified by the IRS as abusive tax shelter schemes or transactions. The determination of a listed or reportable transaction may depend upon the facts and circumstances that surround the particular transaction. The Custodian shall have no responsibility for determining whether any investment or transaction involving or relating to the Account or its assets or income constitutes a “listed transaction” or “reportable transaction,” as defined in the IRC and regulations or other pronouncements by the United States Treasury and/or IRS, which result in reporting requirements and adverse consequences for failing to comply with any applicable reporting or other requirements. The Account Owner agrees to consult with the Account Owner’s own tax or legal advisor to ensure that listed or reportable transactions related to the Account are identified. The Account Owner agrees to report each listed or reportable transaction to the IRS as the entity manager who approved or caused the IRA to be a party to the transaction using IRS Forms 8886-T and 8886, to pay any applicable excise taxes using Form 5330, and to disclose to the Custodian that such transaction was a listed or reportable transaction, and to direct the Custodian to any necessary corrective action to be taken by the Account. The Custodian shall not be responsible for and the Account Owner agrees to indemnify the Custodian for any adverse consequences, including failing to comply with any applicable reporting or other requirements on behalf of the Account Owner and/or other persons relating to any such listed or reportable transaction.