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EP Abusive Tax Transactions

NOTE: General Questions About Retirement Plans
Technical and procedural questions about your retirement plans are answered by EP Customer Account Services. Questions should be directed to (877) 829-5500 (toll-free number).

The IRS is engaged in extensive efforts to curb abusive tax shelter schemes and transactions. The Tax Exempt and Government Entities Division of the IRS, including the office of Employee Plans, participates in this IRS-wide effort by devoting substantial resources to the identification, analysis, and examination of abusive tax shelter schemes and promotions.

    • Abusive Transactions That Affect Availability of Programs under EPCRS
      A detailed explanation on how abusive transactions are affected by the new Employee Plans Compliance Resolution System eligibility requirements.

    • Notice 2006-65
      (Excise Taxes With Respect To Prohibited Tax Shelter Transactions to Which Tax-Exempt Entities Are Parties and Related Disclosure Requirements)
      The Tax Increase Prevention and Reconciliation Act of 2005 ("TIPRA"), enacted on May 17, 2006, includes new excise taxes and disclosure rules that target certain potentially abusive tax shelter transactions to which a tax-exempt entity is a party. Entities that may be affected by the new provisions include, but are not limited to, charities, churches, state and local governments, Indian tribal governments, qualified pension plans, individual retirement accounts, and similar tax-favored savings arrangements. The managers of these entities, and in some cases the entities themselves, can be subject to excise taxes if the entity is a party to a prohibited tax shelter transaction.

    • IRS Corporate Abusive Tax Transactions Home Page
      Listed transactions, with citations of published guidance, regulations or court cases and other useful resources.

    • "Abusive Tax Avoidance Transactions (ATAT) and Emerging Issues" audio
      ATAT and Emerging Issues EP Phone Forum audio and transcript.

  • Press Releases
    • Treasury, IRS Issue Section 409(p) Final Regulations
      The Treasury Department and IRS issued final regulations under Section 409(p). That section of the tax law generally prohibits accruals or allocations under an employee stock ownership plan (ESOP) that holds stock of an S corporation where the ownership interest in the ESOP or in rights to acquire the corporation are so concentrated among 10 percent owners that they hold 50 percent or more of the interests in the corporation. The final regulations are available for review. (12/16/2006)

    • Abusive Transaction Settlement Initiative
      Internal Revenue Service officials announced a broad-based, limited-in-time opportunity for taxpayers to come forward and settle an array of transactions the IRS considers abusive. (10/27/2005)

Report an Abusive Transaction Involving a Retirement Plan

Employee Plans maintains the Abusive Transaction Hotline that people can use to share information (anonymously, if preferred) about abusive tax shelters and emerging issues that may be abusive in retirement plans:

  • Telephone: (443) 853-5584 (not toll-free)
  • Fax: (443) 853-5644
  • Email: tegeepsheltercoord@irs.gov
  • Mail:
         Internal Revenue Service
         EP Tax Shelter Coordinator
         31 Hopkins Plaza, Room 1542
         Baltimore, Maryland  21201

 

Page Last Reviewed or Updated: 11-Jul-2014