Wealthy Targets of IRS Malta Probe Get Letters Walking It Back

The IRS has rescinded some criminal summonses from its crackdown on Malta pension plans, raising questions about whether the agency is backing off or retooling its aggressive campaign targeting the offshore tax schemes.

Three attorneys interviewed by Bloomberg Tax said more than 30 of their clients had received a withdrawal letter last week. The IRS declined to comment.

It’s not clear whether the withdrawal letters represent a revision to the investigation’s focus into the potentially abusive schemes. If so, it would be a striking reversal after the agency sent out hundreds of summonses in June to wealthy Americans sheltering assets ...