PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3468-3471)
Congressional Research Service
Version 00 · Introduced in Senate · Apr 26, 2002
Tax Haven and Abusive Tax Shelter Reform Act of 2002 - Amends the Internal Revenue Code to set forth general and special rules defining economic substance.Doubles the penalty for certain tax accuracy related underpayments.Penalizes the promoter of tax avoidance strategies which have no economic substance in an amount equal to 100 percent of the gross income derived.Modifies provisions concerning penalties for aiding and abetting understatement of tax liability, including adding provisions directed specifically at individuals who advise, represent, or procure certain tax shelters failing to meet legal requirements.Revises provisions concerning the failure to maintain lists of investors in potentially abusive tax shelters to set the penalty for certain violations at 50 percent of gross proceeds.Creates a new penalty, the penalty for failure to include tax shelter information with a return.Requires the registration of certain tax shelters without corporate participants.Requires Americans transferring money or property to a tax haven or to a resident of a tax haven to furnish information with respect to the transfer. Permits exceptions. Imposes a financial penalty where an individual fails to provide the information requested by the Secretary.Reduces certain specified tax benefits with respect to income from identified tax havens.Imposes a financial penalty of $5,000, in addition to any other penalty imposed by law, for failing to keep records or file a required report with respect to any foreign financial agency transaction.
People & committees
Sen. Kerry, John F. [D-MA] · D–MA
Legislative record
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Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3468-3471)
Sponsor introductory remarks on measure. (CR S3467-3468, S3471)
Introduced in Senate
Primary sources
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Source last updated: Aug 19, 2025. Consult Congress.gov for the current record.
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