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Wednesday, March 28, 2007

IRS Wins Cemco Tax Shelter Case

The U.S. District Court for the Northern District of Illinois on Tuesday granted the Government's motion for summary judgment in yet another tax shelter case:  Cemco Investors LLC v. United States, No. 04 C 8211 (N.D. Ill. 3/27/07).  The particular shelter was a BLIPSS variant -- the goal was to increase the basis of a partnership through the purchase of offsetting foreign currency contracts.  The judge did not buy it:

As detailed below, Cemco’s theory consists of several nuanced procedural steps. Ultimately, however, the argument amounts to little more than a house of cards, for if any of the steps fail (and several do), Cemco’s entire position collapses.

For more, see Joe Kristan.

http://taxprof.typepad.com/taxprof_blog/2007/03/irs_wins_cemco_.html

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The IRS won a "summary judgment" ruling on a version of the "BLIPS" tax shelter in a Chicago Federal courtroom... [Read More]

Tracked on Mar 29, 2007 6:41:29 AM

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