Tax shelter settlement reached between IRS and law firm
Arnold & Porter pays undisclosed sum to draw a line under tax shelter case with the Internal Revenue Service
The IRS has reached a settlement with Arnold & Porter, a law firm which
has subsequently paid an undisclosed penalty after admitting to the promotion of
tax shelters.
It’s alleged between the periods of 2000 and 2002 the law firm failed to
comply with tax shelter registration requirements.
In addition, Arnold & porter also participated in organizing three types
of listed tax-shelter transactions which it then sold to high net-worth
individuals and corporations.
Ernst & Young has also been caught up in the dispute over compliance with
tax shelter registrations.
Peter Cinquegrani, a former partner at Arnold & Porter, and employees of
Ernst & Young designed tax shelters and a legal opinion to support it,
according to
Reuters.
Following the settlement of the case, the IRS said the law firm has since
implemented a suitable compliance program.
Further Reading:
http://www.webcpa.com/article.cfm?articleid=29075
