Legal update: tax shelters.

Author:Roberts, Wayne D.
Position::Small Business CENTRAL - Brief Article

The Michigan Department of Treasury has entered into an information-sharing agreement with the Internal Revenue Service in an effort to recoup tax revenue from individuals and businesses that have engaged in shelter schemes. The move is similar to agreements that have been entered into by more than 40 other states with the IRS, as well as New York City and Washington D.C.

According to Michigan Treasurer Jay Rising, one factor motivating Michigan's decision to take part in the national effort to share information was California's recent successes in collecting hundreds of millions of tax dollars that had been sheltered using tax schemes. As a part of this information-sharing arrangement, the IRS released more than 900 names of Michigan entities that the federal government suspects of taking part in what they are terming "abusive" tax schemes. This list will allow the Michigan tax authorities to reduce costs by focusing their audits on likely tax shelter participants.

For businesses, this development means that the time is now to take...

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