Gerald Kramer
The AZ CPA
5350 N 16th St
Phoenix, AZ 85016
(602) 264-9331
Fax: (602) 279-1766
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TAX BRIEF # 3
OCTOBER 2003
IRS and Arizona Announce Partnership to Target Abusive Tax Avoidance Transactions ( ATAT)
The Internal Revenue Service and the Arizona Department of Revenue recently announced the establishment of a new partnership to combat abusive tax avoidance. Under the agreement, the IRS will share information on abusive tax avoidance transactions and those taxpayers who participate in them.
Abusive tax schemes cost the state of Arizona several million dollars each year. The memo of Understanding will allow the Department of Revenue to take a more aggressive approach against taxpayers that are purchasing abusive tax avoidance products to evade paying their fair share of Arizona income tax, said J. Elliot Hibbs, director, Arizona Department of Revenue.
Under the partnership, the IRS will exchange information about abusive tax avoidance transaction leads. This will allow the IRS and the Department of Revenue to avoid duplication and piggyback on the results of each otheršs work. The state and the IRS will then share information on any resulting tax adjustments, reducing the need for duplicating lengthy taxpayer examinations by both the state and the IRS.
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