Abusive tax shelter

An abusive tax shelter is an investment arrangement that claims tax deductions considered by the IRS to be illegal. These shelters may engage in any of the following arrangements:

These arrangements commonly route invested funds through partnerships or trusts. An abusive tax shelter has no economic purpose; it exists solely to reduce the income taxes of investors

When this type of arrangement is declared illegal, investors are liable for back taxes, penalties, and interest charges.

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Family Tax Planning