Practice Strengths

Our Reportable Transactions Services team takes a proactive and practical approach to dealing with the complex web of regulations that require disclosure of tax shelters-or potentially abusive tax avoidance transactions. The current disclosure rules, while more coherent than earlier versions, still require careful analysis and interpretation, particularly in view of significant new penalties for failure to comply.

Our team has designed and implemented systems that help clients ensure compliance with the reportable transaction disclosure rules on a cost-effective basis. We offer an alternative to expensive, off-the-shelf compliance “packages” sold by other service providers. Our extensive experience lets us target situations and issues where there are significant disclosure risks.

We provide independent, timely and cost-effective reviews of both proposed and executed transactions to determine whether disclosure is required. We work together with clients to find an overall solution for a potentially reportable transaction—one that takes into account their existing corporate risk minimization policies. We provide responsible advice that takes into account penalty protection and privilege alternatives.

In fact, you might say that we “wrote the book” on reportable transactions. Members of our team co-authored BNA Tax Management Portfolio 798, Tax Shelters and often participate in cutting-edge forums on tax shelter policy. One of our team members was a primary author of the final tax shelter regulations.

About Our Tax Team

With a team of more than 80 lawyers—many of whom have served as senior government tax advisors and have received substantial leadership recognition within the legal profession—Baker Hostetler's national tax practice offers unsurpassed resources to our clients. We can handle any tax planning matter or tax controversy at the state, federal or international level, and have the insight and experience to make the Tax Code work to our clients' advantage.

Leadership in Action

Reportable Transactions/Tax Shelter Compliance

Monitorship under DOJ Agreement

Client: One of the world's largest financial institutions.

Type of Matter: Implementation of quality control procedures for certain types of transactions, often involving complex tax strategies, under an agreement with the Department of Justice.

Our Client's Challenge: Our client entered into an agreement with the Department of Justice concerning its participation in certain types of transactions, which often involve complex tax strategies. Pursuant to the agreement our client needed to put in place and follow a number of controls and procedures.

The Goal: To work with the client as a monitor on behalf of the DOJ to ensure compliance.

Our Strategy: Working closely with the client, we reviewed its procedures and also designed workable internal protocols that will help ensure that the terms of the agreement are being followed.

Results: The client has agreed to institute the vast majority of the recommendations provided by Baker Hostetler over the course of the monitorship.