abusive tax shelter

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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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Abusive tax shelters are defined as schemes using multiple flowthrough entities to evade taxes.
However, the credit is arguably at far greater risk from the abusive tax shelters that have been seen over the last decade or so.
Abusive tax shelters commonly involve package deals designed from the start to generate losses, deductions, or credits that will be far more than present or future investment.
The IRS considers such arrangements to be abusive tax shelters.
Although there is nothing wrong with pursuing legitimate avenues for lowering a client's tax liability, the development and aggressive marketing of abusive tax shelters demonstrated a significant failure of professional ethics.
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.
22) The firm must also cease participation in the development, marketing, or sale of pre-packaged tax products, and it must not participate in the marketing of opinions on abusive tax shelters.
108-357) introduced new rules for "material advisors" as a way for the IRS to counterattack abusive tax shelters.
And he said the crackdown on abusive tax shelters would have scared away rich individuals and corporations from locating in Oregon.