Corporate tax shelters under major attack

✍ Scribed by Strobel, Caroline D.

• Book ID: 101225566
• Publisher: John Wiley and Sons
• Year: 2000
• Tongue: English
• Weight: 66 KB
• Volume: 11
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/(sici)1097-0053(200001/02)11:2<83::aid-jcaf13>3.0.co;2-8

✦ Synopsis

It is clear that both the Treasury Department and the Internal Revenue Service (IRS) are making their highest priority the attack of corporate tax shelters. The Internal Revenue Service is turning this task over to the Corporate (Middle Market/Large Corporation) branch. Efforts are being made to develop guidelines or criteria that differentiate abusive corporate tax shelters and those transactions that are undertaken in the normal course of business, although they are tax-advantaged transactions. Particular attention is being given to those transactions that lack a business purpose other than the reduction of federal income taxes. Abusive corporate tax shelters are also high on the list of priorities in the Congressional tax-writing committees. Shutting down these abusive schemes not only is good tax policy, but provides added revenue as well. Congress will probably turn their attention to some sort of legislation eliminating these shelters as they try to enact some other revenue losing changes, such as extenders on expiring provisions.