Article: Update on IRS crackdown.(Tax Tip)

THE COMBINATION OF THE INTERNAL REVENUE Service's crackdown on perceived tax shelters (including and the related disclosure and list-maintenance requirements) along with taxpayers who continue to seek ways to reduce their tax liabilities is now resulting in litigation.

Caught in the middle are the tax professionals who, owing to perceived competitive pressures as well as a genuine desire to provide service, try to be proactive in suggesting new ways to reduce clients' tax liabilities. A tax advisor who sits back and waits for his client to come to him with a tax planning question appears to fall into the traditional role of rendering tax advice. The tax advisor ...

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