IRS gives shelter investors until late June to come forward, avoid some

penalties

http://www.fox23news.com/news/national/story.aspx?content_id=15735A72-9973-4D05-A8C2-4666047301C9

WASHINGTON (AP) - The Internal Revenue Service said Wednesday that taxpayers who used a tax shelter known as "Son of Boss," which was marketed aggressively beginning in the late 1990s, can avoid some penalties if they come forward by June 21.

The IRS said it knew of several thousand instances in which the shelters were used to create a large, artificial loss so as to offset an unusual, one-time gain like the sale of a business. The loss canceled out the gain and taxes owed.

Each transaction allowed investors to evade between $10 million and $50 million in taxes, for a total tax avoidance of more than $6 billion, not including interest and penalties, the IRS said.

The IRS and Justice Department have been pursuing promoters who market and sell abusive tax shelters, in some cases suing the promoters for lists of investors.

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