Don Korb Quoted in Thomson Reuters Article on Upcoming “Son of Boss” CasesJanuary 13, 2012
On January 13, Mr. Korb was quoted in a Thomson Reuters article titled, “'Son of Boss' Crackdown Lands in Supreme Court,” which addressed the upcoming bond and option sales strategies tax shelter case going before the U.S. Supreme Court. As noted in the article, the Son of Boss shelters were some of the costliest tax schemes in U.S. history, forcing the government to lose $6 billion in revenues and involved fabricating paper losses in order to offset gains.
Although the IRS settled many of these cases, the complex structures used in the schemes caused the court to lose some of its challenges, including Home Concrete partners, which won in February 2011 in an appeals court. As a result, the IRS wrote a controversial regulation that allowed the agency to use a six-year statute of limitations period and appeal some of the cases it had lost. Mr. Korb explained that “the IRS could get carried away” with changing regulations and Home Concrete could be the case “where this retroactivity issue could be decided.”