Crackdown On Tax Shelter Inconveniences Rich People

Reuters (03.24.05):

"The U.S. Internal Revenue Service has recovered $3.2 billion in unpaid taxes from taxpayers who used the 'Son of Boss' tax shelter, the agency said on Thursday. The IRS had deemed the tax shelter abusive and said last year it was aware of estimated understatements of taxes due of more than $6 billion, excluding interest and penalties. It offered settlements with taxpayers that allowed them to deduct as a loss their out-of-pocket transaction costs. IRS on Thursday said it expects to recover more than $3.5 billion in unpaid taxes when it concludes the settlement program over the next few months." IRS Recovers $3.2 Bln from Shelter Settlement

AP (03.24.05):

"There's been 'some real pain' among the 1,165 taxpayers who are participating in the 'Son of Boss' tax shelter settlement, IRS Commissioner Mark Everson said at a news conference. 'Some people have had to sell their villas and yachts' to come up with the money." Crackdown on Tax Shelter Nets IRS $3.2 Billion

Awwwww. Sure sorry to hear that. IRS Commissioner Mark Everson: "'This was not a bargain-basement deal," he said. Under the terms of the program, people were required to pay back 100 percent of the claimed tax losses and pay a penalty of either 10 percent or 20 percent." "Those who choose to litigate their case instead of participating in the initiative face assessment of the maximum penalty of 40 percent. Everson added that those who go to court will be publicly named, while the IRS does not make public the names of those participating in the settlement." Background: "Uh Oh! See, e.g.; Fish, Shoot, Barrel"