Kaiser and IRS tax shelters

Brian S. Weinstock

By Brian S. Weinstock

On April 12, 2010, the Department of Justice, Tax Division filed a Complaint in the United States District Court for the Eastern District of Missouri against Philip Kaiser requesting a permanent injunction and other relief. The public record reveals that the Department of Justice, Tax Division is attempting to enjoin Kaiser and all those in active concert or participation with him from allegedly organizing, promoting or selling “tax schemes” known as:

  1. a Private IRA Corporation or “PIRAC”,
  2. a Charitable Family Limited Partnership or “Char-FLP”,
  3. a Real Estate Purchase Option, and
  4. Derivium also called a “90% stock loan.”

If you take steps to correct any IRS violations before the IRS begins to investigate your transactions, you can take advantage of IRS correction programs. Once an IRS investigation begins with regard to you, you cannot take advantage of these programs. The IRS has already begun investigations into self-directed Roth IRA accounts or PIRACs as well as the Charitable Family Limited Partnership or Char-FLP. A Justice Department spokesman has already been quoted as stating that the Department of Justice is going to get Kaiser’s client list. Therefore, time is of the essence to contact an attorney to assist you in reviewing your transaction and with any potential IRS examination.

Updated pleading in U.S. Court of Appeals… read more.
Article discussion McGraw Milhaven… read more.


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