Five prominent Silicon Valley businessmen are suing Ernst & Young, accusing the Big Four accounting firm of roping them into an illegitimate tax shelter which resulted in millions of dollars in IRS penalties, interest and professional fees.
Thomas Fallon, Carl Redfield, Richard Timmins, Robert Puette and Alexandre Balkanski filed suit in Santa Clara County Superior Court on Jan. 30.
According to the lawsuit, the men are five of 125 people in the U.S. who bought an Ernst & Young tax shelter product called a "contingent deferred swap" or "CDS" between 1999 and 2002. The five men all purchased the tax shelter product as a way to reduce exposure to taxes on a collective $51 million.
The Internal Revenue Service said in 2002 it wouldn't recognize the swap as a legitimate tax strategy.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment