Washington (April 11, 2002) -- April 23 is the last day taxpayers can voluntarily disclose to the Internal Revenue Service their participation in tax shelters and other questionable transactions and be eligible for waiving certain accuracy-related penalties if there is an underpayment of tax.
"There is still time for taxpayers to voluntarily come forward and disclose their participation in abusive tax shelters and questionable transactions. After April 23, the IRS will continue its aggressive pursuit of abusive tax shelters and other questionable transactions and impose penalties when appropriate," said Larry Langdon, Commissioner, Large and Mid-Size Business Division."This voluntary disclosure initiative complements the IRS efforts to aggressively pursue tax shelter promoters and obtain lists of investors who have participated in abusive transactions. The IRS is using all of its enforcement tools, including summons, to identify tax shelter promoters and investors," said Langdon. "We are focusing our efforts on promoters who market these tax shelters."
As of April 5, the IRS has received disclosures from over 250 taxpayers that involve 458 tax shelter transactions with reported deductions and losses of over $8.5 billion through the initiative. This disclosure initiative does not apply to taxpayers involved in fraud, criminal conduct, concealment of a foreign financial account or trust, or treatment of personal expenses as deductible business expenses.
-- Electronic Accountant Newswire staff
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