A transaction is considered as a prohibited tax shelter transaction if it is:
Listed Transactions: A transaction in which all the taxes are avoided is called as a listed transaction.
Confidential Transactions: A transaction that is made to your organization or any other related organizations in terms of confidentiality is called a confidential transaction.
Transactions With Contractual Protection: A transaction under which your organization or any other related organization has the right for a full or a partial refund of the fees if the terms of the transaction are not sustained is called a transaction with contractual protection.
Organizations that file Form 990, except Section 527 political organizations are required to file Form 8868-T if the organization is a party to prohibited tax shelter transactions.