Wednesday, February 11, 2015 12:49:19 PM
Foreign trusts
IBC transactions
Stock Compensation Transactions
Lease In/Lease Out or LILO Transactions
Offsetting Foreign Currency Option Contracts
Let's look at some other abuses in more detail.
Variable Prepaid Forward Contracts
Mr. Jones wants to sell his stock while it's still valuable but does not want to pay taxes on the profits. So he puts the stock in a bank for safekeeping, promising to sell the stock to the bank later. The bank gives him a handsome sum of cash, a significant percentage of the stock's value. But the stock has not yet been officially sold, only pledged. Stock fluctuates in value, so, to prevent a loss on the "pledged" transaction, the bank reinvests the stock elsewhere. The result is that Mr. Jones gets a bunch of cash and doesn't have to pay capital gains taxes.
Offshore Tax Havens
Companies form corporations, banks and trust providers in foreign countries called "tax havens," where taxpayers can hold their money and assets to avoid paying U.S. federal income tax on them. These entities are designed to make it difficult to trace ownership -- and therefore tax liability -- of the assets. Popular tax havens include Panama, Belize, the Cayman Islands, St. Kitts and Nevis, the British Virgin Islands, and the Isle of Man [source: McCoy].
Inflated Partnership Basis Transactions (Son of Boss)
This complex transaction, popular in the 1990s, involved the formation of partnerships and the artificial inflation of business losses in these partnerships. When the IRS cracked down, it offered a settlement to participants in the scheme. The average participant in Son of Boss paid $1 million to the IRS; one participant paid over $100 million. All told, the IRS restored over $3 billion in unpaid taxes, interest and penalties through this settlement [source: IRS].
Abusive Roth IRA Transactions
Roth IRAs are retirement accounts with contribution caps. You can contribute a certain amount of your earnings within a certain time period. Anything over the cap is subject to an excise tax. To get around this limit, participants create separate businesses whose sole purpose is to make contributions to the IRA. The participants run their money through these businesses to make it look like they're not violating a contribution cap. Income that should be taxed flows tax-free into the IRA.
Recent TENX News
- Tenax Therapeutics to Host KOL Event: “LEVEL Setting: the Scientific Rationale for Levosimendan as a Potential First Treatment for PH-HFpEF, and the Ongoing Phase 3 LEVEL Study” • GlobeNewswire Inc. • 04/09/2024 12:30:00 PM
- Tenax Therapeutics Provides Business and Clinical Development Updates with Full Year 2023 Financial Results • GlobeNewswire Inc. • 03/28/2024 12:30:00 PM
- Tenax Therapeutics to Present at the 36th Annual Roth Conference • GlobeNewswire Inc. • 03/12/2024 12:30:00 PM
- Tenax Therapeutics Announces Oral Presentation of Levosimendan for the Treatment of PH-HFpEF at THT 2024 • GlobeNewswire Inc. • 02/29/2024 02:00:00 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 02/26/2024 09:31:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/23/2024 09:30:34 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/20/2024 09:01:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/20/2024 01:33:49 PM
- Tenax Therapeutics Announces Global License Amendment that Significantly Expands Rights to Levosimendan • GlobeNewswire Inc. • 02/20/2024 01:30:00 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/16/2024 04:28:52 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/16/2024 12:36:40 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/12/2024 09:46:29 PM
- Tenax Therapeutics Announces Pricing of Approximately $9 Million Public Offering • GlobeNewswire Inc. • 02/08/2024 01:16:41 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 02/08/2024 05:15:17 AM
- Tenax Therapeutics Enrolls First Patient in Phase 3 LEVEL Study Evaluating TNX-103 (Oral Levosimendan) for the Treatment of Pulmonary Hypertension in Heart Failure with Preserved Ejection Fraction (PH-HFpEF) • GlobeNewswire Inc. • 02/08/2024 01:01:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/06/2024 01:56:32 PM
- Tenax Therapeutics Announces USPTO Grants Notice of Allowance for U.S. Patent Application, Significantly Broadening IP Protection for Use of Levosimendan in Pulmonary Hypertension with Heart Failure with Preserved Ejection Fraction (PH-HFpEF) • GlobeNewswire Inc. • 02/06/2024 01:30:00 PM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • BLO • Apr 25, 2024 8:52 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
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Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM