Tax shelter means a partnership or other entity, any investment plan or arrangement, or any other plan or arrangement if a significant purpose of that partnership, entity, plan, or arrangement is the avoidance or evasion of federal income tax.
Tax shelter means a tax shelter as defined in section 6111 of the Internal Revenue Code, including a tax shelter described in section 6111(d) of the Internal Revenue Code, except that:
Tax shelter means a property that would be a tax shelter, as defined in section 1079.1, if
Examples of Tax shelter in a sentence
Thus, a C cor- poration that uses a combination of ac- counting methods including the use of the cash method is subject to this sec- tion.(b) Tax shelter defined—(1) In general.
Tax shelter exception to confidentiality privileges relating to taxpayer communications (sec.
Tax shelter annuities for employees, amendments and terminations.
Tax shelter farm activities ( personal service corporations only) .
Tax shelter within the meaning of section 6662(d)(2)(C).(2) Requirement of registration.
More Definitions of Tax shelter
Tax shelter means any property, including any right to income, other than a flow-through share or a prescribed property, in respect of which it may reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the property, that, if a person were to acquire an interest in the property, at the end of a particular taxation year that ends within four years after the day on which the interest is acquired, the amount referred to in the second paragraph would equal or exceed the amount by which the cost to the person of the interest in the property at the end of the particular year, determined without reference to Title VIII of Book VI, would exceed the aggregate of all amounts each of which is the amount of any prescribed benefit that is expected to be received or enjoyed, directly or indirectly, in respect of the interest in the property by the person or another person with whom the person does not deal at arm’s length ;”.
Tax shelter. FOR IMPOSITION OF PENALTIES Under Section 6662 of the Code, a twenty (20%) percent penalty is imposed on any portion of an underpayment of tax attributable to a "substantial understatement of income tax." In general, a "substantial understatement of income tax" will exist if the actual income tax liability of the taxpayer exceeds the income tax liability shown on his return by the greater of 10% of the actual income tax liability or $5,000. Unless the understatement is attributable to a "tax shelter," the amount of an understatement is reduced by any portion of such understatement which is attributable to (i) the income tax treatment of any item shown on the return if there is "substantial authority" for the taxpayer's treatment of such item on his return or (ii) any item with respect to which the taxpayer adequately discloses on his return the relevant facts affecting the item's income tax treatment. In the case of a "tax shelter," which is defined in Section 6662 of the Code as a partnership or other entity that has as its principal purpose the avoidance or evasion of federal income tax, this reduction in the understatement only will apply in cases where, in addition to having "substantial authority" for treatment of the item in question, the taxpayer reasonably believed that the income tax treatment of that item was more likely than not the proper treatment. In addition to the substantial understatement penalty, Section 6662 of the Code also imposes a 20 % penalty on any portion of an underpayment of tax (i) attributable to any substantial valuation misstatement (generally where the value or adjusted basis of a property claimed on a return is 200% or more of the correct value or adjusted basis), or (ii) attributable to negligence, defined as any failure to make a reasonable attempt to comply with the Code, or a careless, reckless or intentional disregard of federal income tax rules or regulations. The Regulations under Code Section 6662 provide that an entity will be deemed to be a tax shelter if the tax avoidance or evasion in motive exceeds all other motives. Based on the investment objectives of the Partnership, it is my opinion that the Partnership will not be considered a "tax shelter" for purposes of Code Section 6662 if challenged by the IRS, litigated and judicially decided.
Tax shelter as defined in Section 6111 of the Code.
Tax shelter means a tax avoidance transaction.
Tax shelter means any entity, plan, or ar- rangement, if avoiding or evading federal income tax or Wisconsin income or franchise tax is a sig- nificant purpose of the entity, plan, or arrange- ment.
Tax shelter or “confidential corporate tax shelter” within the meaning of Section 6111 of the Code and the Treasury Regulations thereunder or (iii) “potentially abusive tax shelter” within the meaning of Section 6112 of the Code and the Treasury Regulations thereunder. (u) No Group Company has distributed shares of another Person nor had its shares distributed by another Person in a transaction that was intended or purported to be governed in whole or in part by Section 355 or Section 361 of the Code (v) Each plan, program, agreement or arrangement of the Group Companies that is or forms part of a “nonqualified deferred compensation plan” (within the meaning of Section 409A(d) of the Code) has been administered, documented and maintained in all material respects in accordance with Section 409A of the Code and the rules and regulations promulgated thereunder, such that no Tax, interest or penalty is or has been due and owing in respect of such arrangement failing to be in compliance therewith. No Group Company has any “gross-up” or indemnity obligations for Taxes imposed under Section 4999 or 409A of the Code. No payment or benefit which could be made with respect to any a “disqualified individual” (as defined in Section 280G of the Code and the regulations thereunder) is reasonably expected to be characterized as a “parachute payment” within the meaning of Section 280G(b)(2) of the Code. (w) The Group Companies have not taken any action with respect to Taxes pursuant to the Families First Coronavirus Response Act, the CARES Act, or other Coronavirus Aid, including any action that resulted in or will result in the delay or reduction in the payment or the deposit of any Taxes, any delay in the filing of any Tax Return, any material Tax election or other Tax-related filing (including pursuant to IRS Notice 2020-18, IRS Notice 2020-23 or any similar or related guidance for federal, state or local Tax purposes), any change in accounting method or accounting period, any amendment to any Tax Return, any consent to any extension or waiver of the limitations period applicable to any Tax claim or assessment, any claim for refund, any utilization of any Tax credits (including any Employee Retention Credit), Tax benefits or other Tax incentives, or any other similar effects relating to Taxes or Tax Returns. (x) For purposes of this Section 4.14, any reference to any Group Company shall be deemed to include any Person that merged with or was liquidated or converted (or is deemed t...
Tax shelter has a different meaning for this purpose than under the penalty rules described above at “—Accuracy-Related Penalties.” Recent Legislative Developments The present U.S. federal income tax treatment of publicly traded partnerships, including the Partnership, or an investment in common units may be modified by administrative or legislative action or judicial interpretation at any time. For example, from time to time, members of Congress and the President propose and consider substantive changes to the existing U.S. federal income tax laws that affect publicly traded partnerships, including the elimination of the Qualifying Income Exception upon which the Partnership relies for treatment as a partnership for U.S. federal income tax purposes. 137