FROM THE OFFICE OF PUBLIC AFFAIRS

Treasury has been working hand in hand with the IRS to have the right policies and rules to effectively address the problem of abusive tax avoidance transactions.  The best policies mean little unless they are enforced, and today's action represents another important step by the IRS, Chief Counsel and the Justice Department in bringing these transactions, and their promoters, into the light.

The John Doe summons initiative is an important step in our efforts to ensure that the IRS has the information necessary for it to fully and fairly enforce the tax laws.

For the first time, a summons is being issued to a law firm requesting the identification of taxpayers who may have invested in listed transactions or other potentially abusive transactions organized or sold by the firm.

We are working to create a new climate of respect by going after conduct that represents the most troublesome forms of potentially abusive tax avoidance.

 Attached:

Tax Shelter Backgrounder

Statements by IRS Commissioner Everson and IRS Chief Counsel B. John Williams