FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department and the Internal Revenue Service on Thursday issued a notice to curb another marketed tax scheme -- the so-called Bond and Option Sales Strategy, or BOSS transaction. In this scheme, taxpayers and promoters use a series of contrived steps in an attempt to generate tax losses to offset income from other transactions.

"We will continue to go after abusive schemes and shelters as they come to our attention," Treasury Secretary Lawrence H. Summers said. "Our aim is to build on a culture of compliance by protecting those who willingly pay their fair share."

The notice alerts taxpayers and promoters that the Treasury and IRS believe that the purported losses arising from such transactions are artificial and are not properly allowable. The notice also informs taxpayers and promoters that penalties may be imposed.