Illinois Department of Revenue
 
 
Abusive Shelters
 
 
 
 
 

Abusive Tax Avoidance Transactions

 
 

Illinois has joined the IRS and 48 states in a cooperative effort to identify participants and promoters of potentially abusive tax avoidance transactions, commonly known as abusive tax shelters. As part of this effort, Illinois has:

  • Enacted new penalties and additional reporting requirements for both use and promotion of abusive tax shelters;
  • Assembled and trained a team of auditors and lawyers dedicated to uncovering abusive tax shelters;
  • Entered into agreements to exchange information with the IRS and various other states to create and maintain a database of taxpayers participating in abusive tax shelter activity, and
  • Agreed to work with the IRS and other states in sharing client lists from promoters who market abusive tax shelters.
  • Enacted a Voluntary Compliance Program (VCP) to give taxpayers an opportunity to file and pay any tax liability from participating in a tax avoidance transaction before the new penalties related to abusive tax shelters go into effect.

Press Releases

Tax Shelter Updates

General Information

Penalties and Interest

More Information

 
 
Answer Center
 
 
Quick Links
 
 
 
 
Information For
 
 
 
 
About IDOR