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.