### Question
How is the term nondisclosed noneconomic substance transaction defined?


### Answer
The term **nondisclosed noneconomic substance transaction** is defined in *26 U.S.C. § 6662* as the following:

> any portion of a transaction described in subsection (b)(6) with respect to which the relevant facts affecting the tax treatment are not adequately disclosed in the return nor in a statement attached to the return

#### Citation:
  - *26 U.S.C. § 6662*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 68-ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES > Subchapter A-Additions to the Tax and Additional Amounts > PART II-ACCURACY-RELATED AND FRAUD PENALTIES**

