The IRS spearheaded an effort to find some taxes they believed were slipping through the cracks. The results shocked even them:
A government effort to persuade people and companies to come forward with questionable tax shelter arrangements has netted 577 disclosures involving more than $16 billion in claimed deductions, the IRS announced Thursday.For a four-month period, "accuracy-related" penalties were not assessed against those who made a disclosure. This helped people who thought that their tax situation might be legally questionable less afraid to step forward.
"It exceeded our expectations," said Larry Langdon, commissioner of the Internal Revenue Service's large and mid-size business division. "We're learning about transactions we didn't know about before."