Reporting Loss Transactions: Too Much of a Good Thing

By Megan L. Brackney
New York Law School Review
Volume 59 2014/15

In 2004, Congress enacted the American Jobs Creation Act of 2004 (“Jobs Act”)1 to address abusive tax avoidance transactions that “threaten[ed] our tax system’s integrity and fairness.”2 Congress was motivated to enact this legislation based on reports by the Internal Revenue Service (IRS) revealing that over approximately a decade, several hundred thousand participants were likely engaged in abusive tax avoidance schemes, totaling approximately tens of billions of dollars of tax losses.

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