WASHINGTON-Money laundering isn't the only thing on Treasury's mind these days, even as the Internal Revenue Service readies for the April 15 filing date for payment of federal income taxes. Targeted are corporate tax shelters that Treasury Secretary Lawrence Summers termed the "most serious compliance issue threatening the American tax system." New rules would require companies to disclose tax shelters on their returns if any two of six suggested conditions are met, including if a fee of $100,000 was paid to an outside firm that helped to create a shelter. Some Wall Street companies have specialized in that approach, marketing the shelters as tax-avoidance bonanzas. Insurance companies have also recently pleaded with some members of Congress to stop companies from relocating to Bermuda for the express purpose of not paying taxes. Big players like Hartford, Chubb, Kemper and Liberty Mutual want the loophole closed because it disadvantages their own stateside operations, they say.
Treasury Department and IRS to tighten tax shelter rules
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