Some new Tax Shelters a No-Go With Treasury
Based on sources, The New York Times reports that several Big 5 firms are proposing unique tax shelters to clients that do not make the grade. The shelters create artificial tax losses by investing in partnerships.
The Treasury Department did not release the names of the firms that are suspect, and could not be sure of which firms even proposed the shelters. The Treasury chose to handle the matter through administrative changes because implementing a ban on these types of shelters does not require any legislation.
Lawrence Summers, secretary of the Treasury, said these and other similar shelters demonstrates the need for legislation to curb any illegal schemes. Although the Clinton administration has generally been in favor of such legislation, Republicans have not.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.