KPMG represented its tax strategy known as (BLIPS) Bond Linked Premium Structure — a tax product known as a "loss generator", intended to generate paper losses that taxpayers could use to offset and shelter other income from taxation — as a legitimate tax and business transaction. KPMG enlisted assistance from a law firm to persuade plaintiffs to purchase its tax strategy. The Internal Revenue Service (IRS) has now challenged that tax strategy and plaintiffs have and will incur significant costs as a consequence. It is the contention of the plaintiffs that KPMG knew that the tax strategy was abusive and unlawful and that KPMG deceived then into purchasing this strategy through its own misrepresentations and those of the entities with whom it partnered. The IRS has deemed the transactions illegal.
The case also arises under RICO (Federal Statutes), which will, in effect, triple the potential amount of dollars awarded to the plaintiff.
RPWB will continue to pursue this case to its fullest extent, as well as assist you in evaluating and litigating your abusive tax shelter cases. Please
contact us if you have any questions or if you want to inquire about representation from an abusive tax shelter attorney.
