Abusive Tax Avoidance Transactions - Illinois Income Tax
The Illinois Department of Revenue (IDOR), the Internal Revenue Service (IRS), and 48 other state taxing agencies work in a cooperative effort to identify participants and material advisors of abusive tax avoidance transactions, also known as abusive tax shelters. As part of this effort, Illinois has:
- Enacted penalties and additional reporting requirements for both use and promotion of abusive tax shelters;
- Entered into agreements to exchange information with the IRS and various other state taxing agencies to create and maintain a database of taxpayers participating in abusive tax shelter activity; and
- Agreed to work with the IRS and other state taxing agencies in sharing client lists from material advisors who market abusive tax shelters.
Legislation and Regulations