Washington (May 3, 2002) -- The Internal Revenue Service says its 120-day Tax Shelter Disclosure Initiative has led the disclosure of billions of dollars in claimed losses and deductions. The initiative required taxpayers to provide information about the disclosed transactions and items in return for the IRS waiving certain accuracy-related penalties.
"Hundreds of taxpayers came forward and took advantage of this opportunity to voluntarily disclose questionable tax transactions and submit the names of abusive tax shelter promoters," said IRS Commissioner of Large and Mid-Size Business, Larry Langdon. "We have agreed to work with these taxpayers to resolve their concerns as quickly and efficiently as possible. At the same time, we are beginning to go after the tax shelter promoters identified in these disclosures."
As of May 1, 2002, the IRS has processed 621 disclosures from 577 taxpayers that came forward to voluntarily disclose. These disclosures covered 947 tax returns and involved more than $16 billion in claimed losses or deductions. Additional disclosures that were submitted by mail may still be received.
The disclosure initiative was another in a series of steps taken by the IRS and Treasury to identify and shut down questionable tax shelter activity. The IRS took this step to more readily identify tax shelter promoters who have not registered and to find other taxpayers who have not disclosed their participation in a tax shelter.
-- Electronic Accountant Newswire staff
