Content reviewed October 17, 2026 · Educational reference
Where the enforcement spotlight actually points.
7.1 · DOJ Tax Division Injunction Complaint (March 27, 2025)
On March 27, 2025 the Department of Justice filed a civil complaint seeking to enjoin promoters of a monetized installment-sale arrangement, United States v. Crow and S. Crow Collateral Corp., No. 1:25-cv-00177 (D. Idaho). A complaint states allegations and requested relief; it is not a final merits judgment. As of this review the case appears to be closed per public docket listings (terminated March 17, 2026 per PacerMonitor; UniCourt still shows the case as open); the disposition has not been reviewed. Read the court’s orders before describing the case’s outcome.
The action illustrates why advisors should review linked loans, control of proceeds, intermediary roles, and the substance of claimed deferral. It does not decide the treatment of a separately structured SIS transaction. Compare facts and legal issues rather than infer approval from the absence of an identical enforcement action.
7.2 · Monetized Installment Sale Regulations — Still Proposed
The August 2023 REG-109348-22 document proposes a listed-transaction designation for the described monetized transactions and substantially similar arrangements. No final §1.6011-13 regulation had been published as of the October 17, 2026 review. The promoters’ pre-enforcement Administrative Procedure Act challenge to the proposed regulations, Crow v. United States, No. 1:24-cv-00346 (D. Idaho), was dismissed, as reported in November 2025 (secondary reports; confirm against the court’s order). Monetized installment sales do not appear on the IRS’s 2026 “Dirty Dozen” list (IR-2026-30, March 5, 2026), after appearing on earlier lists such as IR-2021-144. Check the operative rule and effective date before making a disclosure determination.
A proposal does not, by itself, impose its proposed designation before the stated effective conditions occur. Existing substantive tax law and other disclosure provisions remain relevant. Economic substance, step transaction, constructive receipt, and substance over form can apply according to the facts; no SIS label supplies categorical immunity.
7.3 · One Big Beautiful Bill Act (OBBBA) — Signed July 4, 2025
The OBBBA did not change the mechanics of §453, §453A, or §453B. It preserved the long-term capital-gains rate structure (0%/15%/20%, plus the 3.8% NIIT under §1411 with unchanged $200k/$250k MAGI thresholds), and it made the Opportunity Zone program permanent with a new "OZ 2.0" framework beginning January 1, 2027 (rolling five-year deferral; 10% basis step-up at five years, 30% for rural funds). Implementing guidance to date: Rev. Proc. 2026-14 (eligible census tracts and the nomination procedure; nominations opened July 1, 2026), Notice 2026-40 (June 18, 2026; transitional guidance), REG-116506-25 (QOF information reporting and certification procedures, published September 11, 2026), and Notice 2026-55 (request for comments, due November 23, 2026). Substantive regulations on the post-2026 §1400Z-2 rules had not been issued as of this review.
The 2025 legislation requires dated comparisons, including the new §1062 farmland tax-payment election and changes to Opportunity Zones and QSBS. Distinguish spreading recognition of gain under §453 from spreading payment of an already computed tax. A headline 23.8% rate is not universal: income, asset character, NIIT applicability, and state tax can change the result. See the retained new deep dives and current-developments log for those comparisons.
What it says. Treasury and the IRS issued proposed regulations under §1062 — REG-117095-25, RIN 1545-BR83, 91 FR 61367 (published September 29, 2026; announced in IR-2026-115, September 28, 2026; comments due November 30, 2026; prop. §§1.1062-0 through 1.1062-3). They address the partner- and shareholder-level election, the filing deadline (including extensions) and the unextended first-installment date, the “substantially all” ten-year use test, covenant execution and recording, acceleration events and the eligible-transferee exception on new Form 1062-T, and coordination with §453 (prop. §1.1062-2(f) and Example 5). Taxpayers may rely on them for sales in tax years beginning after July 4, 2025 if applied fully and consistently. How it applies to the SIS. The proposed rules confirm that only gain recognized in the year of sale enters the §1062 computation, so a farmland seller using §453 or an SIS cannot make a fresh four-year election for gain reported in later years. They are proposed, not final; see the Qualified Farmland Deep Dive for the section-by-section discussion.
Sources: Federal Register — proposed monetized-sale listing regulations; IRS IR-2026-30 — 2026 Dirty Dozen list; Federal Register — REG-117095-25, proposed §1062 regulations (91 FR 61367, Sept. 29, 2026); IRS — Rev. Proc. 2026-14 Opportunity Zone nomination guidance (IR-2026-45); IRS Notice 2026-40 — Opportunity Zone transitional guidance; IRS Notice 2026-55 — request for comments on §1400Z-2; REG-116506-25 — QOF information reporting and certification (proposed); IRC §453A — interest and pledges; Treas. Reg. §1.451-2 — constructive receipt; IRC §453B — dispositions of obligations.
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