Treasury Targets Tax Shelters
New proposed regulations exclude contingency fees based on a tax benefit winning Internal Revenue Service approval, permit the IRS to publicly reprimand or censure people whose offenses do not result in disbarment, and require firms to set up compliance procedures.
"Abusive tax shelters are the most serious compliance problem in the U.S. tax system," said Treasury Secretary Lawrence H. Summers. "These proposed measures would deter the purveyance of these shelters, protect the integrity of our tax system and ultimately reduce the tax burdens of honest taxpayers."
A public hearing is scheduled for May 2, 2001 on these proposed rules. The new rules were developed in with the approval of the American Bar Association and the American Institute of Certified Public Accountants. View more on this story in the Washington Post .