IRS Abusive Transaction Settlement Initative

Taxpayers who engaged in a wide variety of "abusive transactions" will be able to settle their tax troubles with the IRS. According to the annoucement, IRS Commissioner Mark Everson promised:

"We’re offering taxpayers a quick, quiet and cost effective way to put these deals behind them."

The IRS has identified 21 "abusive transactions" available for settlement. Among the more popular transactions are risk-free currency swaps, abusive transactions involving pension plans, employee reimbursement, and charitable contributions. Settlement applications are due by January 23, 2006. Taxpayers involved, or potentially involved, in these transactions should seek legal counsel.