Source: http://famguardian.org/TaxFreedom/CitesByTopic/TaxShelter.htm
Timestamp: 2017-05-24 17:57:43
Document Index: 779129117

Matched Legal Cases: ['§461', '§6111', '§6112', '§6662', '§6700', '§6671', '§301']

CITES BY TOPIC: tax shelter
Black's Law Dictionary, Sixth Edition, pp. 1462-1463
Tax shelter. A device used by a taxpayer to reduce or defer payment of taxes. Common forms of tax shelters include: limited partnership interests, real estate investments which have deductions such as depreciation, interest, taxes, etc. The Tax Reform Act of 1986 limited the benefits of tax shelters significantly by classifying losses from such shelters as passive and ruling that passive losses can only offset passive income in arriving at taxable income (with a few exceptions). Any excess losses are suspended and may be deducted in the year the investment is sold or otherwise disposed of.
[Black's Law Dictionary, Sixth Edition, pp. 1462-1463]
Webster's Ninth New Collegiate Dictionary, p. 1209, ISBN 0-87779-510-X (deluxe):
"tax shelter n(1952): a strategy, investment, or tax code provision that reduces one's tax liability "
[Webster's Ninth New Collegiate Dictionary, p. 1209, ISBN 0-87779-510-X (deluxe)]
IRS Website: Abusive Tax Shelters
IRS Website: Listed Abusive Tax Shelters and Transactions
IRS Form 8264: Application for Tax Shelter
IRM 5.20: Abusive Tax Avoidance Transactions
IRS Form 8271: Investor Reporting of Tax Shelter Registration
IRS Publication 550: Investment Income and Expenses-Read Chapter 2 on Tax shelters
IRS Abusive Tax Promotions Training Manual, Training 3118b-002-HOT!
IRS Market Segment Specialization Program: Abusive Tax Shelters
IRS Market Segment Specialization Program: Abusive Tax Shelter Penalty Guide
26 U.S.C. §461: General Rule for Taxable Year of Deduction (i) Special rules for tax shelters
For purposes of this subsection, the term ''tax shelter'' means -
(C) any tax shelter (as defined in section 6662(d)(2)(C)(iii)).
26 U.S.C. §6111: Registration of tax shelters (c) Tax shelter
The term ''tax shelter'' means any investment -
For purposes of this subsection, the term ''tax shelter ratio'' means, with respect to any year, the ratio which -
Except as provided in this paragraph, the term ''investment base'' means, with respect to any year, the amount of money and the adjusted basis of other property (reduced by any liability to which such other property is subject) contributed by the investor as of the close of such year.
For purposes of subparagraph (A), there shall not be taken into account any amount borrowed from any person -
(ii) who is a related person (as defined in section 465(b)(3)(C)) to any person described in clause (i),unless such amount is unconditionally required to be repaid by the investor before the close of the year for which the determination is being made.
The Secretary may by regulation -
(II) include in the investment base any amount not described in subparagraph (A), if the Secretary determines that such exclusion or inclusion is necessary to carry out the purposes of this section.
An investment is a substantial investment if -
For purposes of this section, the term ''tax shelter'' includes any entity, plan, arrangement, or transaction -
For purposes of paragraph (1)(B), an offer is under conditions of confidentiality if -
(B) any promoter of the tax shelter -
(iii) causes another person to claim, that the tax shelter (or any aspect thereof) is proprietary to any person other than the potential participant or is otherwise protected from disclosure to or use by others.
For purposes of this subsection, the term ''promoter'' means any person or any related person (within the meaning of section 267 or 707) who participates in the organization, management, or sale of the tax shelter.
(ii) no tax shelter promoter is a United States person, then each United States person who discussed participation in such shelter shall register such shelter under subsection (a).
Subparagraph (A) shall not apply to a United States person who discussed participation in a tax shelter if -
26 U.S.C. §6112: Organizers and sellers of potentially abusive tax shelters must keep lists of investors (b) Potentially abusive tax shelter
For purposes of this section, the term ''potentially abusive tax shelter'' means -
(1) any tax shelter (as defined in section 6111) with respect to which registration is required under section 6111, and
(2) any entity, investment plan or arrangement, or other plan or arrangement which is of a type which the Secretary determines by regulations as having a potential for tax avoidance or evasion.
26 U.S.C. §6662: Imposition of accuracy-related penalties (d) Substantial understatement of income tax
(C) Special rules in cases involving tax shelters
(iii) Tax shelter
For purposes of this subparagraph, the term ''tax shelter'' means -
(III) any other plan or arrangement, if a significant purpose of such partnership, entity, plan, or arrangement is the avoidance or evasion of Federal income tax.
26 U.S.C. §6700: Promoting Abusive Tax Shelters 26 U.S.C. §6671(b): Definition of "person" for the purposes of "abusive tax shelters" and other penalties TITLE 26 >
Subchapter B >
PART I > Sec. 6671 Sec. 6671. - Rules for application of assessable penalties (b) Person defined
26 C.F.R. §301.6111-1T Questions and answers relating to tax shelter registration.