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| | New Tax Law Affects Settlement Initiative |
 | | The deadline to elect to participate in the settlement initiative is Jan. 23, 2006. |
 | | The Gulf Opportunity Zone Act of 2005, signed into law Dec. 21, 2005, changes this rule for these abusive tax avoidance transactions. A participant in a “listed” or “undisclosed reportable” transaction will now be subject to the running of interest on the unpaid liability from the filing of the tax return. |
 | | The new law, however, specifically excludes individuals from this interest rule who take part in the IRS settlement initiative described in Announcement 2005-80. This carve out is designed to encourage taxpayers to correct their abusive transaction activities by coming forward, conceding the legitimacy of their transaction, and paying 100-percent of the tax. |
| www.irs.gov /newsroom/article/0,,id=152514,00.html (323 words) |
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