Monday, September 17, 2007
"Internal Lehman emails reviewed by the Journal reveal bankers searching for the line between smart tax planning and improper tax avoidance. In the end, according to the emails and to people familiar with Lehman's business, the bankers and their lawyers concluded that it was a business worth pursuing," the Wall Street Journal says.
The Journal reported in July that the Internal Revenue Service is seeking information from Lehman and Citigroup Inc. about certain trades. Other firms expect to receive similar inquiries.
Tuesday, September 11, 2007
The investigation appears to have been sparked by disclosures required by a new accounting rule known as "FIN 28."
The Journal quoted one letter as requesting the companies to "describe any United States tax position or group of similar tax positions that represents 5 percent or more of your total [unrecognized tax benefit] for the period, including in the description of each whether the tax position involved foreign entities or jurisdictions."
Senate investigators also want to know what tax professionals and law firms were involved in tax-cutting transactions on which companies spent at least $1 million for legal fees or other costs.
Tuesday, September 4, 2007
Judge Peter W. Hall set Sept. 18 for oral arguments on the issue.
Saturday, September 1, 2007
This program will be available to municipal bond issuers who wish to correct such violations. Resolution terms described in this program are only available until March 1, 2008. Failure to correct a violation could result in a related bond issue being deemed “arbitrage bonds,” which lose their tax-exempt status.