Abusive Tax Transactions
The IRS is engaged in extensive efforts to curb Abusive Tax Transactions schemes.
The Tax Exempt and Government Entities Division of the IRS participates in this IRS-wide effort. It’s done by devoting substantial resources to the identification, analysis, and examination of abusive tax shelter schemes.
- Listed Transactions – Background
- Employee Plans Listed Transactions
- How Abusive Transactions Impact Availability of EPCRS
- Report an Abusive Transaction Involving a Retirement Plan
- Additional Resources
The IRS finalized regulations on abusive tax shelters. The regulations are that a taxpayer must disclose certain transactions, known as “listed transactions”. This is done by filing a disclosure statement (Form 8886 and instructions) with its tax return.
Form 8886-T and instructions should be used by tax-exempt entities in disclosing this information. The instructions include an explanation of the penalties if there is a failure to disclose a reportable transaction.