abusive tax shelter

Also found in: Acronyms.

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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And an even bigger risk is that, because the IRS believes that some of these arrangements are also abusive tax shelters, it could impose civil penalties under Sec.
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.
1) The name of each transaction that is a potentially abusive tax shelter and the registration number, if any, obtained under [section] 6111 of the Code;
99) The remedy for solving the abusive tax shelter problem should not have the ancillary effect of making it impossible for a taxpayer to reasonably rely on the opinion of the taxpayer's CPA or attorney.
The Treasury Department has made clear that they feel that the issue of abusive tax shelters is a matter of national importance.
Abusive tax shelter: According to the IRC, an abusive tax shelter is an entity, plan, or arrangement with a significant purpose of avoiding or evading federal income tax.
Penalties for participation in abusive tax shelters and failure to participate in the VCI were imposed at rates up to 75% of the additional tax due.
44) An opinion with contractual protection raises a suspicion that the advice relates to an abusive tax shelter.
Abusive tax shelter transactions typically have no economic purpose other than to reduce taxes with predictable tax losses or tax consequences.
We want to close down the sale of abusive tax shelter, so we would like to focus on promoters," Petersen said.
Expand the scope of the examination to include any previously nondisclosed abusive tax shelter or listed transaction discovered during the course of the audit.