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| Oregon one of 21 states pursuing taxpayers who use abusive tax shelters | ||
| 06/07/2007 | ||
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SALEM—Oregon has joined 20 states and the Multistate Tax Commission (MTC) in a one-time program that encourages businesses and individuals to come clean if they used abusive tax shelters to avoid paying taxes. An abusive tax shelter allows a taxpayer to avoid paying state or federal income tax. They include, but are not limited to, “listed transactions” as defined by the IRS. Abusive tax schemes became popular in the 1990s among individuals and businesses with one-time large capital gains. Some businesses and individuals believed the tax schemes were legitimate. The MTC program will give those taxpayers an opportunity to report abusive tax shelters without penalty. The program ends October 1. “Taxpayers can avoid paying costly penalties if they report their abusive tax shelters during this period,” said Department of Revenue Director Elizabeth Harchenko. “If they wait until after the program ends, they will have to pay penalties. It could be very expensive for them.” Taxpayers who filed returns showing abusive tax shelters for any tax period beginning before January 1, 2006 may participate in the program. Taxpayers who have not filed tax returns also may participate. “It will be easy for taxpayers to comply because so many states are working together through the MTC to form one set of procedures and a single point of contact. We’ll also be pooling our enforcement abilities,” Harchenko said. Taxpayers who want to participate in this program must complete separate forms MTC-VCP-1 for each state to which they owe taxes. With each form, they must send an amended or original state tax return, federal Form 8886, and full payment to the MTC. The MTC must receive all documents by October 1. After the program ends, Oregon will contact taxpayers who could have participated in the MTC’s program but chose not to. Forms, rules, procedures, and a list of participating states are available at www.mtc.gov . For more information, contact the MTC by e-mail, VCP@mtc.gov; telephone, 202-624-8699; or in writing, Voluntary Compliance Program, c/o Multistate Tax Commission, 444 North Capitol Street, Washington, DC, 20001. A directory of listed transactions is on the IRS website, www.irs.gov . |
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