A crackdown on abusive tax shelters that includes codifying the economic substance doctrine would create legal booby traps for small businesses and open the door for new abuses by unscrupulous tax shelter promoters, the American Institute of CPAs warned Congress.
In comments submitted to the Senate Permanent Subcommittee on Investigations, the AICPA raised concerns that new statutory language specifically outlawing transactions with no economic purpose other than tax benefits "would have a long-term negative effect on both taxpayers and the government."
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