Auerbach Law Group, P.C.
White Plains
East Hampton
Call us

Contact our offices

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Certain tax shelters can lead to trouble with the IRS

Although the term may have a negative connotation, a tax shelter is, strictly speaking, not always illegal or bad.

After all, many people in the White Plains area have retirement plans which carry tax benefits with them. Many other New Yorkers own real estate and may attempt to do advantageous exchanges of real estate rather than selling it outright. Taking advantage of these investment vehicles with the favorable tax consequences in mind is, in a way, placing one's money in a tax shelter.

The problem is that many others, either innocently or not, may get caught up in what the IRS describes as abusive tax shelters. Many of these abusive tax shelters are listed on the IRS's website. Despite what those who promote them might say, the IRS considers these shelters, and similar look-alike financial setups, to be unlawful schemes to avoid or reduce one's tax liability.

Not surprisingly, the IRS has a strict enforcement program aimed at shutting down abusive tax shelters, and punishing those who promote or participate in them, through civil or even criminal tax litigation. The IRS says that it will use the means necessary, including audits, reporting hotlines, self-reporting requirements and other legal devices as part of its efforts.

Of course, taking advance precautions, including reading the IRS's list of disapproved tax shelters, is important. However, well-intentioned New Yorkers can wind up getting pulled into a suspect tax shelter remarkably easily.

In some cases, it may even be the IRS which is unfairly pursuing what really is a lawful plan to work within the tax code.

In all cases, someone who is involved in an investigation of an abusive tax shelter should consider seeking out legal advice.

No Comments

Leave a comment
Comment Information

Contact us

White Plains Office
81 Main Street
Suite 307
White Plains, New York 10601

Phone: 914-686-7171
Fax: 914-686-0168
White Plains Law Office Map

East Hampton Office
17 Beverly Road
Post Office Box 2888
East Hampton, New York 11937

Phone: 631-329-7171
Fax: 631-604-6140
East Hampton Law Office Map

Chappaqua Office
726 King Street
Post Office Box 488
Chappaqua, New York 10514

Phone: 914-238-7171
Fax: 914-238-4353
Chappaqua Law Office Map

map-bg map-bg