Update On Recent IRS Activities

In March, 2020, the Treasury Inspector General for Tax Administration (“TIGTA”) found that the IRS Office of Tax Exempt Bonds was not instituting promoter penalty examinations (I.R.C. sec. 6700). In its response, which was made a part of the TIGTA report, the IRS appears to have intentionally misled TIGTA by making up a non-existent “high threshold” for instituting these types of penalty examinations on promoters of abusive tax schemes.

In April, 2020, I wrote to the IRS and TIGTA regarding the inaccurate and misleading IRS response. My letter to the IRS is attached. The IRS has not responded to my letter or to a Congressional inquiry regarding this matter. Neither the IRS nor TIGTA has corrected the public report.

Meanwhile, the IRS has refused to investigate major U.S. banks who are promoting and selling fraudulent tax schemes incorporating ostensibly tax-exempt bonds, notwithstanding the ready availability of veteran revenue agents who have either extensive experience and/or received exhaustive training on how to investigate these banks pursuant to section 6700 of the Internal Revenue Code.