Tax Shelter Promoter Investigations

The IRS is aggressively pursuing those people it believes are responsible for designing, implementing, marketing, selling or in any way promoting abusive tax shelters. In many cases, the IRS is seeking criminal sanctions in addition to steep civil penalties from these promoters.

A tax shelter promoter is defined as any person who organizes (or assists in the organization of) or participates in the sale of any interest in an entity, plan or arrangement and, in connection therewith, makes or furnishes (or causes another person to make or furnish) a statement with respect to the availability of any tax benefit by reason of participating in the plan or arrangement that the person knows or has reason to know is false or fraudulent as to any material matter.

The civil penalty promoting an abusive tax shelter can be steep. It is $1,000 for each promoter activity or, if less, 100 percent of the gross income derived (or to be derived) by the promoter from such activity. This penalty is imposed in addition to any other applicable penalty.

At the Thorn Group, we are particularly aware of the impact a tax shelter promoter audit can have.Contact Kevin E. Thorn, Managing Partner at ket@thornlawgroup.com or 202-349-4033 if you have been accused of promoting an abusive tax shelter so that our experienced tax attorneys can begin evaluating your case and protecting your rights.

IRS Abusive Tax Shelter Information

For more on the most up-to-date information on civil audits and offshore accounts, please visit News & Events and Thorn's Tax Talk.