IRS offers settlement over 'abusive' tax scheme

The Internal Revenue Service in the US has announced a settlement initiative for executives and more than 40 corporations that took part in an "abusive tax avoidance transaction" involving unreported income of $700m.

The scheme involved the transfer of stock options or restricted stock to family controlled entities, according to the IRS.

It said in a statement: "Executives, often facilitated by their corporate employers, transferred stock options to family controlled partnerships and other related entities typically created for the sole purpose of receiving the options and avoiding taxes o

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