The IRS began its annual “Dirty Dozen” series on June 1, warning taxpayers of abusive transactions and scams.
The first installment of the series addresses four arrangements to shun:
- The misuse of a charitable remainder annuity trust (CRAT);
- Engaging in specious transactions with an individual retirement arrangement (IRAs) in Malta or another foreign country;
- Maintaining certain captive insurance arrangements through a Puerto Rican or other foreign corporation;
- And camouflaging, or “monetizing,” an installment sale as a series of loans.
Learn more about these potentially abusive schemes here.