Taxpayers who used 'Son of Boss' shelter pay $3.2B

From wire reports - They say some have had to sell their villas & yachts.

WASHINGTON — The Internal Revenue Service has recovered $3.2 billion in unpaid taxes from taxpayers who used the "Son of Boss" tax shelter, the agency said Thursday.
There's been "some real pain" among the 1,165 taxpayers who are participating in the settlement, IRS Commissioner Mark Everson said at a news conference. "Some people have had to sell their villas and yachts" to come up with the money.

The IRS had deemed the tax shelter abusive and said last year it was aware of estimated understatements of taxes due of more than $6 billion, excluding interest and penalties. It offered settlements with taxpayers that allowed them to deduct as a loss their out-of-pocket transaction costs.

He said this project dwarfed previous efforts to pursue tax evaders. A program to crack down on improper use of offshore credit cards netted $270 million, equivalent to the amount paid by just three individuals in the "Son of Boss" initiative. One person paid back more than $100 million and the average was nearly $1 million.

"This was not a bargain-basement deal," he said. Under the terms of the program, people were required to pay back 100% of the claimed tax losses and pay a penalty of either 10% or 20%.

http://www.usatoday.com/money/perfi/taxes/2005-03-24-son-of-boss_x.htm