Texas lawyers invested millions in unqualified tax shelters
Three Texas personal injury lawyers will have to pay up after a tax court decided yesterday that they invested hard-earned fees in tax shelters that couldn’t pass the Internal Revenue Service’s smell test.
“Each of these lawyers was in the business of estimating risk and reward in evaluating every case he considered, but in this instance each sought refuge in a tax shelter whose builders used flawed designs and constructed it from bad materials that do not survive close inspection,” the court said. (6611, Ltd. v. Commissioner)
