Tax shelters.

• Author: Laffie, Lesli S.
• Position: From The IRS

According to IR 2003-51, 78 tax shelter promoters are currently under investigation by the IRS's Large and Mid-Size Business Division (LMSB). Further, the Service has issued 239 summonses to secure investor lists from promoters; 77 of those have been referred to the Justice Department for enforcement. Investor lists covering multiple transactions have been obtained from 25 promoters to date.

Treasury and the IRS are moving aggressively to crack down on abusive transactions, with a multifaceted strategy. LMSB is leading a comprehensive effort, supported by Appeals, other operating divisions and Treasury.

The Service said its effort to bring taxpayers into compliance through its voluntary tax shelter disclosure initiative was quite successful. The disclosure program, which extended from December 2001 to April 2002, resulted in 1,664 disclosures from...