In our Abusive Tax Shelters–Detection and Analysis practice area, we strive to be of immediate service to those individuals or entities who are struggling in their efforts to evaluate whether they are faced with legitimate tax-savings planning opportunity or something that is potentially abusive (i.e., too good to be true), or worse, find themselves to have been victimized by an abusive tax shelter.
After over a decade of practical experience in large firm practice, Mr. Tufts assists taxpayers in their efforts to identify potentially abusive tax shelters that have flooded the market. In addition, Mr. Tufts can assist taxpayers in fighting against the assessment of Section 6662A penalties in situations in which the particular transaction is one that was identified by the IRS but not properly subjected to the requirements of APA notice and comment rulemaking procedures, based on the arguments set forth in cases like Green Valley Invs., LLC v. Commissioner, 159 T.C. No. 5 (2022).
If you are interested in having an analysis performed of a particular transaction or in implementing a system in a firm that might assist in the detection of potentially abusive tax shelters, Mr. Tufts is ready to be of assistance to you. Also, if a taxpayer (individual or corporation or other entity) suspects that he, she, or it may have been victimized by a tax scam or abusive tax shelter scheme, or is some transaction seems to have created tax benefits which appear to be too good to be true, we can assist that taxpayer in evaluating their duties under the Federal tax law, and if necessary, further represent the taxpayer before the IRS. Parties potentially facing Section 6662A penalties might wish to explore whether the particular type of transactions were not properly identified by the IRS under the notice and comment rulemaking requirements of the APA, based on the reasoning of cases like Green Valley Invs., LLC v. Commissioner, 159 T.C. No. 5 (2022).
We also assists victims of abusive tax shelters and tax scams in evaluating any and all of their legal options with regard to promoters and others involved in the dissemination and distribution of these shelters, and in such cases, may refer the matter to another lawyer or law firm specializing in the bringing of such claims.
Transactions of Interest
- Contribution of Successor Member Interest to Charity
- The Toggling Grantor Trust
- Potentially Abusive Sales of REM Interests in Charitable Trusts
- Subpart F Income Partnership Blocker
- Basket Contracts
- Section 831(b) Micro-Captive Transactions (IRS Notice 2016-66)(NEW)
In many of these disputes, client representation needs to be handled by legal practitioners who can combine the necessary tax and business entity expertise to assist the owners in working through these issues. Mr. Tufts aims to provide an owner with the expertise he or she or it may need to work through the issues that can arise in a business dispute of this kind. Parties potentially facing Section 6662A penalties might wish to explore whether the particular type of transactions were not properly identified by the IRS under the notice and comment rulemaking requirements of the APA, based on the reasoning of cases like Green Valley Invs., LLC v. Commissioner, 159 T.C. No. 5 (2022).