IRS Extends Moratorium on Tax Shelter Penalties

The Small Businees Fair Tax bill S. 2917 was passed in the Senate unanimousley. We are still awaiting the House to vote on the sister bill HR4068.

IRS has extended the Moratorium on 6707A penalties until June 01, 2010.

Following are some of the links related to the news.

Webcpa – IRS-Extends-Moratorium-Tax-Shelter-Penalties

Bloomberg: IRS Extends Moratorium on Tax Penalty Fought by Small Business

Initially aimed at tax shelters for big corporations and wealthy individuals, the provision has also been applied to small-business owners who have paid into retirement accounts for themselves and their employees without following IRS disclosure requirements, said Kathleen Pakenham, a New York- based partner at White & Case, who represents 30 such clients.

“It’s a Band-Aid,” said Pakenham of the moratorium. “It’s not addressing the underlying problem.”