This feed is published daily with selected new or updated
content from across our network. For a list of network sites, many of
which feature daily news, see below.
Providing essential tax news and information for globally
mobile artists, contractors, entrepreneurs, professionals, small businesses,
sportspersons and entertainers.
Lowtax Network Sites
Lowtax Network Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
IRS Suspends Some Tax Shelter Penalties,
by Mike Godfrey, Tax-News.com, Washington
Monday, July 13, 2009
The US Internal Revenue Service (IRS) is suspending collection of certain penalties
to allow Congress time to work on legislation to help small businesses that invested in listed tax shelter transactions that generated modest tax benefits, but resulted in tax penalties significantly larger than the tax benefits received.
The agency’s unusual offer of clemency to certain businesses who find
themselves facing penalties way out of proportion to any tax benefits they may
have received from tax shelters comes after a bipartisan group of lawmakers
wrote to IRS Commissioner Doug Shulman last month requesting the agency’s
assistance while Congress legislates to solve the matter.
“I’m pleased the IRS complied with our request so that Congress
can do its part to ensure the tax code treats small businesses fairly,”
said Senate Finance Committee Chairman Max Baucus, who signed the letter along
with committee ranking member Chuck Grassley, House Ways and Means Oversight
Subcommittee Chairman John Lewis and subcommittee ranking member Charles Boustany.
"We are working – both sides of the aisle and the capitol –
to ensure assessed tax penalties fall in line with received tax benefits. Until
we reach that goal, we require cooperation from the IRS so that millions of
American small businesses don’t get another chip stacked against them
in the lagging economy,” Baucus added.
The penalties in question are assessed under section 6707A of the tax code
and were enacted by Congress in 2004 as part of the then administration’s
drive to neutralize abusive tax shelters. The penalties amount to USD100,000
for individuals and USD200,000 for other classes of taxpayer, per year. But
even Commissioner Shulman concedes that in some cases the penalties are “way
out of line” with those dished out for similar transgressions.
“I am concerned that because the current statute applies uniformly without
exceptions and without regard to the amount of tax in question, some taxpayers
are caught in a penalty regime that the legislation did not intend,” Shulman
wrote in his response to the Congressmens’ letter.
“I am dismayed by the feedback that I have received from some of the
most seasoned IRS examination professionals that this statutory provision, in
certain cases, requires them to assess penalties that are way out of line with
penalties for other similar cases of noncompliance,” Shulman reported.
To allow Congress time to fix this problem, the IRS has taken the step of suspending
collection enforcement action on cases where the annual tax benefit from the
transaction is less than USD100,000 for individuals or USD200,000 for other
taxpayers per year, until September 30, 2009.
Grassley, while welcoming Shulman’s response, is of the view that Congress
will probably need longer to fix the problem.
“It’s good to have the reprieve from the IRS, though the suspension
will probably need to be longer in order to get necessary changes through Congress,”
he said.
“The IRS should also do the right thing by studying why only small businesses
have been hit with the penalties since they’re less likely to have the
expensive lawyers that big corporations do. It’s a matter of tax fairness
for both the IRS and Congress,” Grassley added.
.
PROTECT AND GROW
WEALTH OFFSHORE
Protect
Yourself and Your Assets against Devaluation of the Dollar, Currency
Controls, tax hikes and nationalization!
Discover legal ways to protect what is rightfully yours.
Truth revealed about Secure Multi-currency Banking, Family Foundations,
offshore gold/silver storage, Second Passports and more. Get your
"plan B" in place. Don't suffer from the crisis - profit from
it!
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here for a brief introduction
to RSS and instructions on how to get the Tax-News feed.
IMPORTANT NOTICE: THE LOWTAX NETWORK has
taken reasonable care in sourcing and presenting the information contained on
this site, but accepts no responsibility for any financial or other loss or damage
that may result from its use. In particular, users of the site are advised to
take appropriate professional advice before committing themselves to involvement
in offshore jurisdictions, offshore trusts or offshore investments. All materials
on this site copyright THE LOWTAX NETWORK 1999 to 2010. Contact
us for further information.
TAX-NEWS.COM
13/07 
Free Tax-News Feed