Cornerstone Research evaluated the fundamental requirements for tax-advantaged transactions (also known as tax shelters) to be sustained if challenged by the IRS, including whether transactions had a reasonable business purpose.
Cornerstone Research evaluated the fundamental requirements for tax-advantaged transactions (also known as tax shelters) to be sustained if challenged by the IRS, including whether transactions had a reasonable business purpose. We calculated the expected value of tax-advantaged transactions given the contemplated tax benefits, up-front costs, risk of audit, chance of disallowance if audited, and potential penalties. We also evaluated the responsibilities and duties of taxpayers and tax advisors, and the importance of the representations and assumptions underlying tax-advantaged transactions.