![]() Potentially abusive use of the US-Malta tax treaty Recently, the IRS has stepped up enforcement against a variation using potentially abusive offshore captive insurance companies domiciled in Puerto Rico and elsewhere. ![]() Additional information can be found at IRS offers settlement for micro-captive insurance schemes letters being mailed to groups under audit. But the "premiums" paid under these arrangements are often excessive and used to skirt tax law. For example, coverages may "insure" implausible risks, fail to match genuine business needs or duplicate the taxpayer's commercial coverages. In abusive "micro-captive" structures, promoters, accountants or wealth planners persuade owners of closely held entities to participate in schemes that lack many of the attributes of insurance. More information can be found at IRS increases enforcement action on Syndicated Conservation Easements. These abusive arrangements are designed to game the system and generate inflated and unwarranted tax deductions, often by using inflated appraisals of undeveloped land and partnerships devoid of a legitimate business purpose. In syndicated conservation easements promoters take a provision of tax law for conservation easements and twist it through using inflated appraisals of undeveloped land and partnerships. These aggressively marketed abusive arrangements wrap up the IRS's annual "Dirty Dozen" list and include the following: Syndicated conservation easements The best defense for a taxpayer approached by a promoter is to show caution: if it sounds too good to be true, it probably is. To fight the evolving variety of these abusive arrangements, the IRS recently created the Office of Promoter Investigations (OPI) to focus on participants and the promoters of abusive tax avoidance transactions. OPI coordinates service-wide enforcement activities. Some taxpayers play the audit lottery hoping they don't get noticed. These promoters frequently devise new ways to cheat the system and market them aggressively. These "deals" are generally marketed by unscrupulous promoters who make false claims about their legitimacy and charge high fees to boot. The IRS warns people to be on the lookout for promoters who peddle false hopes of large tax deductions from abusive arrangements. WASHINGTON - The Internal Revenue Service today concludes the "Dirty Dozen" list of tax scams with a warning to taxpayers to watch out for schemes peddled by tax promoters, including syndicated conservation easements, abusive micro-captive insurance arrangements and other abusive arrangements.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |