Tax Shelters And Small Businesses Reform Would Curb Penalties For Not Reporting Listed Transactions
We will likely soon see legislation to curb IRS enforcement of penalties against small businesses for engaging in ’listed transactions.’ Fees for not reporting these transactions aim to curb the use of abusive tax shelters. They target businesses and individuals abusing transactions such as certain benefits plans to avoid taxes. Its unintended victims: small businesses who purchased benefits plans from financial planners without knowing they were participating in any problem transaction, and ended up owing enormous penalties....