"Violating tax shelter rules shouldn't be a negotiable offense. That the IRS had to negotiate Ernst & Young's compliance underscores the need to pass the Grassley-Baucus shelter legislation. We expand the shelter registration and customer list requirements and establish stiff penalties for noncompliance.
"It shouldn't surprise anyone that Ernst & Young is so deeply involved in tax shelters. Unfortunately, Ernst & Young isn't alone. We continue to hear about tax shelters being promoted by other accounting firms, law firms, and investment banks. Ernst & Young distributed a video Webcast promoting corporate expatriations in the wake of the post-September 11th stock market slide. I just hope a $15 million penalty is large enough to get their attention."