Page 4 - Can the Code Sec. 6700 Tax Shelter Promoter Penalty Apply to Everyday Tax Advice?

PENALTIES
constitutes the organization of an entity, plan or arrangement described in section 6700(a) (1)(A).”).
10 See Code Sec. 6662(d)(2)(c)(ii). It should be noted that, in the House Report to P.L. 101-239 (the Omnibus Budget Reconciliation Act of 1989), the House of Representatives “clarif[ied] that, under present law,” an “investment plan or other arrangement” under Code Sec. 6700 included the marketing and sales of state and local tax exempt bonds that contained misstate-
ments as to their tax exempt status, without regard to whether such instruments otherwise would have satisfied the traditional definition of a tax shelter, leaving the door open to a broader interpretation of “investment plan or other ar- rangement” under Code Sec. 6700. See H.R. Rep. No. 101-247, 1989 U.S.C.C.A.N. 1906.
11 See, e.g., Stover, 650 F3d at 1108; Campbell, 897 F2d at 1320.
12 Campbell, 897 F2d at 1320.
13 1987 WL 4787 (N.D. Cal. Feb. 25, 1987).
14 Gleason, 432 F3d at 683 (quoting Pres. Servs. Est., 202 F3d at 1103).
15 Campbell, 891 F2d at 1321–1322 (citing H. Conf. Rep. No. 760, 97th Cong., 2d Sess. 572 (1982)); see also CCM 200402008 (Dec. 12, 2003).
16 G.F. Buttorff, CA-5, 85-1 ustc ¶9435, 761 F2d 1056, 1062 (quoting S.Rep. No. 97-494, 267 (1982), reprinted in 1982 U.S.C.C.A.N. 781, 1015).
17 S. Rep. No. 97-494, 266, 1982 U.S.C.C.A.N. 781, 1014.
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24 JOURNAL OF TAX PRACTICE & PROCEDURE OCTOBER–NOVEMBER 2016