IRS Recovers $3.2 billion From Son of Boss Users
The IRS has recovered $3.2 billion in unpaid taxes, interest, and penalties from taxpayers who used the “Son of Boss” tax shelter.
The top three payments totaled $270 million with one taxpayer paying over $100 million.
A Reuters article says:
“IRS on Thursday said it expects to recover more than $3.5 billion in unpaid taxes when it concludes the settlement program over the next few months.
Popular during the late 1990s market boom, Son of Boss was a variant of an illegal tax shelter called the Bond and Options Sales Strategy. It created what the IRS called artificial tax losses to offset profit from the sale of a business or other large, one-time gain.”
About 200 users of Son of Boss were rejected by the settlement program. At leaset 400 users didn’t apply.
According to a Washington Post article,
“The Son of BOSS initiative is one of a series of steps the IRS has taken during the past several years to try to rein in the explosive growth in tax shelters that arose during the boom of the late 1990s.
That growth also coincided with attacks by the Senate Finance Committee on the IRS for what the panel claimed were abuses of its own. Those hearings were followed by a new law bringing sweeping changes in the structure of the IRS and increased focus on service to taxpayers.”
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