Are there other consequences that may apply to material advisors relating to abusive tax shelters?
Effective October 27, 2007, any person who organizes or assists in organizing a tax shelter or participates in the sale of any interest in a tax shelter, and who makes a statement that the person knows or has reason to know is false or fraudulent regarding the allowabilty of tax benefits to be achieved with the tax shelter, is subject to a penalty in an amount of 50% of the person’s gross income derived from such act.
