While most of the controversy surrounding corporate tax shelters
deals with issues of registration, listing, and disclosure of shelters for tax purposes, the disclosure of corporate tax shelters
in a company's financial statements can be overlooked.
Lloyd Doggett (D-Texas) introduced the Abusive Tax Shelter
Shutdown Act of 2001 (H.R.
The IRS defines "confidential corporate tax shelter
" as an entity, plan, arrangement, or transaction that meets the following requirements:
Practitioners should examine case law about marketed opinions in the tax shelter
area for examples that might be analogous to those potentially covered by Section 10.37.
* Participated in the organization of a potentially abusive tax shelter
Daugerdas was a tax shelter
racketeer who tapped into the incredible greed of some of the country's wealthy.''
"Abusive tax shelters
are marketing schemes involving artificial transactions with little or no economic reality.
Countryside argued that it was not required to produce the documents because the IRS had failed to prove that minutes were related to the promotion of a corporation's participation in any tax shelter
, so the Sec.
The court noted that under section 7525(b), the privilege does not apply to written communication "in connection with the promotion of the direct or indirect participation" of a corporation in a tax shelter
as defined in section 6662(d)(2)(C)(ii).
SB 747 (Machado) targeted those who plan, promote or sell abusive tax shelters
and lowers the standard of proof for the FTB in proving cases against practitioners.
have become so widespread and abusive that Congress has taken action.
"This is not about tax shelters
; it's about the fundamental nature of Appeals." He explained that the flaw in the IRS's announcement is illustrated by those transactions involving valuation disputes.