What is a “safe harbor”?
A “safe harbor,” in the context of this guidance, means that the recipient has undertaken efforts to comply with respect to the needed translation of vital written materials. If a recipient conducts the four-factor analysis, determines that translated documents are needed by LEP applicants or beneficiaries, adopts an LAP that specifies the translation of vital materials, and makes the necessary translations, then the recipient provides strong evidence, in its records or in reports to the agency providing federal financial assistance, that it has made reasonable efforts to provide written language assistance.
How the safe harbors work is critical to planning a successful exchange. In general terms, a safe harbor is an area of protection. The IRS has spelled out certain standards and procedures for taxpayers to meet in real estate exchanges. As long as the exchanger meets these criteria, he will be in a safe harbor and not subject to attack by the IRS. The deferred exchange regulations make explicit four safe harbors you may use to avoid constructive receipt of money or boot. If you use safe-harbor specifications, their use will not be considered in testing to see if you have constructive receipt. Thats why they are called safe harbors. Since the safe harbor rules require the exchanger to use the services of a Qualified Intermediary, a wrong choice can doom your exchange. The four safe harbors are covered, plus related party exchanges, and example of direct deeding and how to chose the right Qualified Intermediary for your transaction.
