tax shelter


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tax shelter

n.
A financial arrangement, such as the use of special depletion allowances, that reduces taxes on current earnings.

tax′-shel′tered (-shĕl′tərd) adj.

tax shelter

n
(Accounting & Book-keeping) commerce a form into which business or financial activities may be organized to minimize taxation

tax′ shel`ter


n.
any financial arrangement, as an investment that reduces or eliminates the taxes due.
tax′-shel`tered, adj.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.tax shelter - a way of organizing business to reduce the taxes it must pay on current earnings
reduction, step-down, diminution, decrease - the act of decreasing or reducing something
References in periodicals archive ?
In the traditional sense, a tax shelter is simply a method that a taxpayer uses to generate tax deductions and credits by investing in "investment activities" that often are not expected to generate any real profits.
The Tax Court held that the tax shelter exception to the tax practitioner/client privilege did not apply to documents in the form of the minutes of meetings between a partnership and a federally authorized tax practitioner because the tax advice in the documents was not given in connection with the promotion of a tax shelter.
A listed transaction is a reportable transaction that is the same as, or substantially similar to, a transaction specifically identified by the Treasury Department as a tax avoidance transaction; in other words, a tax shelter determined by the IRS to be abusive and therefore unlawful.
It is my experience--including that of the recent tax shelter initiatives--the Service also recognizes and supports our Appeals mission and our need to be independent.
Graham and Tucker (2006) examine a sample of nearly 50 tax shelter firms.
It must stay out of the tax shelter business and agree to restrictions on its tax practice.
To contribute to the discussion surrounding these changes, GAO's objectives were to determine (1) according to Internal Revenue Service (IRS) data, how many Fortune 500 companies obtained tax shelter services from their auditor; (2) according to IRS data, in how many Fortune 500 companies did the auditor provide the services to individual company officers or directors; and (3) whether selected Fortune 500 case study companies changed how they obtain tax services from their auditor in recent years.
Although the IRS lost this case, it will continue to aggressively litigate any transaction considered a tax shelter.
Both bills also include revenue offsets, including new tax shelter penalties and a host of other provisions that address perceived tax abuses.
An IRS report on trends seen in tax shelter activity; issue identification, legal guidance and analysis of shelters; and a review of current IRS tax shelter regulation and compliance strategies were covered in the Web cast.
A tax shelter does just what the term implies -- it shelters your other income from income tax.
Also in 1999, the Tax Court found sufficient facts to indicate that Compaq Computer engaged in an abusive tax shelter transaction (Luscombe, 1999).