AccountingWEB.com - Jan-19-2006 - The Internal Revenue Service (IRS) announced last week that taxpayers have until January 23, 2006 to file an election form to take part in the global settlement program for 21 specified transactions, and there will be no deadline extension. Interest on tax due as part of this settlement has been exempted from the interest calculation rules changes for abusive tax shelters passed by Congress in the Gulf Opportunity Zone Act of 2005.
The new Act provides that interest on additional taxes involving abusive tax shelter transactions will now start with the filing of the tax return and continue until the time the taxes are settled and paid. Previously, interest was suspended for the period beginning 18 months after the filing, until October 3, 2004. Taxpayers who chose to close out a transaction as part of the settlement initiative will be exempt, on a one-time only basis, from the additional interest.
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