Tuesday, February 3, 2009

Treasury report skeptical of "Son of Boss" settlement impact

Nearly one-fourth of the investors in the "Son of Boss" abusive tax shelter who participated in a settlement with the Internal Revenue Service failed to file their returns on time, paid their taxes late or failed to file returns at all, according to a report by the U.S. Treasury Inspector General for Tax Administration.

Investors in the tax shelter paid $3.8 billion in the settlement to avoid prosecution by the IRS. "Despite the success achieved, the Son of Boss settlement had little effect on investor filing and payment compliance," the report said.

The report, including the IRS response, is available on the U.S. Treasury website.