IRS Announces Settlement Initiative

Courtesy of IRS

October 27, 2005 - Announcement 2005-80

Announces a settlement initiative under which taxpayers and the Service can resolve certain specified transactions.

Most of the transactions involve tax shelter-related issues.

But there are other things here, too.

Some are related to ESOPs set up by small corporations.

There are employees who've doubled-dipped, deducting expenses for which their employers repaid them.

Others are for those who've taken abusive charitable contributions.

In essense, IRS has set up a procedure where the Service and taxpayers can come to terms about deliberate or accidental errors, without any criminal action or major fuss.

For more details, read this PDF.