“Today’s decision by the United States Court of Appeals for the Federal Circuit confirms that illusionary losses purportedly created by the so-called ‘contingent liability’ tax shelter are not deductible against actual taxable income. The Court’s decision is the second from a United States Court of Appeals to address this tax shelter scheme, and represents a significant advance in the Justice Department’s ongoing effort to combat abusive tax shelters and restore integrity to the tax laws.”
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06-426