FROM THE OFFICE OF PUBLIC AFFAIRS To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. June 24, 2004 Treasury Warns Against Abusive Tax Reduction Scheme Today, the Treasury Department and the Internal Revenue Service issued a notice cautioning taxpayers against promoters who market arrangements that purportedly provide reductions in Acting Assistant Secretary for Tax Policy Greg Jenner stated, "This notice is another example of our ongoing efforts to prevent promoters and taxpayers from making highly questionable arguments, and setting up dubious arrangements, in an attempt to avoid paying their fair share of taxes." The notice describes a form of arrangement that has been promoted and that involves running a taxpayer's salary or business income through a U.S. Virgin Islands entity such as a limited partnership. The notice warns, however, that these questionable positions may also be promoted through other forms of arrangements and with respect to The IRS is working on ongoing cases involving arrangements of this type. "This scheme is an effort to disguise or distort where taxpayers live or do business," said IRS Commissioner Mark W. Everson. "We appreciate the assistance given us by the U.S. Virgin Islands Bureau of Internal Revenue on this matter."
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