May 5, 2004
"It's good news that the IRS is cracking down on these 'Son of Boss' transactions. The public Treasury has lost billions because of this particular abusive tax shelter," said Sen. Chuck Grassley, chairman of the Senate Committee on Finance. "While the Treasury is allowing those who bought these tax shelters to come in from the cold, the Finance Committee will be watching closely to ensure that the IRS brings a big stick to those who don't fess up. The IRS especially needs to go after the promoters. In addition, the commissioner and I discussed the limitation of appeals rights in this crackdown, and I'm satisfied that he recognizes my view that this should happen only in rare situations. Finally, abusive and egregious tax shelters are so prevalent that we are moving legislation that ends the suspension of interest for taxpayers who buy listed tax transactions like the 'Son of Boss' and others."
“I applaud the IRS’s plan to aggressively combat the ‘Son of Boss’ transaction, with particular focus on those who have promoted this abusive scheme. The IRS knows the names of several thousand taxpayers who have participated in Son of Boss and will eventually learn the names of thousands more. According to Commissioner Everson, these cases represent $6 billion in lost tax revenue. Billions more may be at stake.
"The IRS has stepped up to the plate — and I believe they have hit a homerun with their pursuit of the 'Son of Boss' transaction. Now Congress is up at bat. The Senate Finance Committee has passed tax shelter legislation numerous times. Our legislation would give the IRS additional tools and penalties to go up against the taxpayers who enter into abusive tax shelters, as well as the promoters. I urge my colleagues to step up to the plate — it is time to be a team player and hit another homerun so that we knock abusive tax shelters out of the ballpark."
Joint Statement by Sen. Norm Coleman, chairman, and Sen. Carl Levin, ranking member, Senate Permanent Subcomittee on Investigations
“The IRS initiative is an essential step in ending the type of egregious tax shelters featured in our Subcommittee hearing last year. The IRS approach allows taxpayers who used outrageous sham tax dodges to pay Uncle Sam the amount of taxes they owe with interest and penalties. It sends a clear message that those who use abusive tax shelters will be held accountable.”
Statement from Rep. Amo Houghton, chairman, HouseWays and Means Oversight
Statement from Rep. Earl Pomeroy, ranking member, Ways and Means Subcommittee on Oversight
"With this enforcement initiative, the IRS is sending a loud and clear message to millionaire tax cheats and Enron-style corporations," said Congressman Earl Pomeroy, ranking member of the Ways and Means Subcommittee on Oversight. "It is an outrage that millionaires and corporations are dodging their tax responsibility, and it is equally shameful that certain accounting firms are helping promote this fraud. This aggressive effort will help crack down on those who break our tax laws and will help bring these cheaters to justice."
Related Link — IR-2004-64, IRS Offers Settlement for Son of Boss Tax Shelter