Bryan C. Skarlatos was quoted in a recent Wall Street Journal article titled “A Tax-Shelter Crackdown Uncovers a Dentist’s ‘Smile High Trust,’” which examines IRS enforcement efforts against tax shelter promotions involving alleged tax-reducing trusts that are targeted to “wealthy individuals, business owners and professionals like doctors and lawyers.” The article details the indictment of a Denver dentist who allegedly paid $50,000 to a tax shelter promoter to create a series of entities designed to hide taxable income from the IRS.
From the article:
While most Americans aren’t in the market for tax shelters, the allegations in this case are a reminder of what can happen when taxpayers ignore professional advice and common sense on taxes. They also show how easy it can be for people who want to slash their taxes to delude themselves.
“People see a complex structure and think, ‘This is what rich people do to reduce their taxes,’ ” says Bryan Skarlatos, a criminal tax attorney with Kostelanetz. “But a complex structure with no business purpose is often a sign of fraud to the IRS.”
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To read the full article, click here.
