IRS Sues to Obtain Records in Deferred Sales Trust Investigation

The IRS on Tuesday asked a federal court in California to enforce administrative summonses on a firm being investigated for promoting a potentially illegal tax shelter.

The government demanded that Kaylor DST Services LLC and Michael Kaylor produce records relating to the promoiton of a so-called “Deferred Sales Trust” shelter, which the agency says may improperly defer the recognition of capital gains taxes. The US District Court for the Central District of California should order compliance with the summonses because the IRS has taken “all administrative steps” required for enforcement under IRC Sections 7402(b) and 7604(a), the petition said. ...