abusive tax shelter

(redirected from Abusive Tax Shelters)

Abusive tax shelter

A limited partnership that the IRS judges to be claiming tax deductions illegally.

Abusive Tax Shelter

An investment vehicle or other structure with no purpose other than to reduces one's tax liability. Often, an abusive tax shelter takes the form of a partnership or trust. Taxpayers caught using abusive tax shelters to avoid or evade taxation must pay the applicable taxes plus interest. To bypass accusation of arbitrary enforcement, the IRS publishes a list of investment vehicles that are considered abusive tax shelters, though one may face penalties for using a scheme that even resembles something on the list.

abusive tax shelter

A tax shelter in which an improper interpretation of the law is used to produce tax benefits that are disproportionate to economic reality.
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In TEI's view, the CEO signature proposal will be no more effective in curbing misleading financial reporting practices than the senior officer attestation would have been in curbing abusive tax shelters.
Westly is also deeply concerned about those who peddle abusive tax shelters to willing and unwitting taxpayers.
List maintenance: Another set of temporary regulations (TD 9018) requires organizers and sellers to maintain lists of investors in potentially abusive tax shelters.
The IRS has been making a concerted effort to deal with what it considers to be abusive tax shelters since early in 2000.
Senate Permanent Subcommittee on Investigations of the Committee on Governmental Affairs interrogated members of the accounting profession, KPMG in particular, for selling abusive tax shelters in the late '90s.
Current litigation centers on the development, marketing, and implementation of abusive tax shelters by professional organizations such as accounting firms, banks, investment advisers, and law firms.
The IRS considers such arrangements to be abusive tax shelters.
He addresses abusive tax shelters and internal control weaknesses for electronic tax filing.
He would also like to go after abusive tax shelters.
CalCPA-sponsored AB 1868 (Bermudez), which would correct the practice privilege statute that went into effect January 2006, made it to the governor despite opposition that mistakenly thought the legislation could allow the sale or promotion of abusive tax shelters to Californians with impunity.
Other parts of this strategic initiative involve compliance efforts aimed at excessive compensation paid to individuals associated with some exempt organizations, misuse of conservation and facade easements, tightened rules for down-payment assistance organizations, and the prevention of abusive tax shelters with the accommodation of tax-exempt entities.
Purcell highlighted the benefits of tax simplification in his testimony stressing that it "will improve future filing seasons through a reduction in tax return errors and taxpayer susceptibility to abusive tax shelters.