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S 1937 108th Congress Senate

Tax Shelter Transparency and Enforcement Act

Official title: A bill to amend the Internal Revenue Code of 1986 to curtail the use of tax shelters, and for other purposes.

Introduced: November 24, 2003 See on congress.gov
Taxation AccountingAdministrative procedureAdministrative remediesAffiliated corporations
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Antitrust lawBusiness recordsChief executive officersCivil actions and liabilityCommerceConfidential communicationsCongressCongressional reporting requirementsCorporate debtCorporate financeCorporate reorganizationsCorporation directorsCorporation taxesCrime and Law EnforcementDepartment of the TreasuryDepreciation and amortizationExecutivesFinance and Financial SectorFines (Penalties)Foreign Trade and International FinanceForeign banks and bankingForeign corporationsFraudGovernment Operations and PoliticsGovernment paperworkHome equity conversionHousing and Community DevelopmentIncome taxInformation disclosure (Securities law)InjunctionsInterestInvestmentsInvestorsLawLawyersLeasesLegal ethicsLiability insuranceLimitation of actionsLoan defaultsLossesPartnershipsProfitPunitive damagesReal estate investmentSecondary mortgage marketStockholdersStocksSubsidiary corporationsTax administrationTax consultantsTax creditsTax deductionsTax evasionTax liensTax penaltiesTax preparersTax returnsTax sheltersTaxation of foreign incomeTaxpayersTrusts and trusteesValuation
This bill died when the 108th Congress ended
It never became law before the 108th Congress (2003–2004) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Nov 24, 2003
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S15819-15827)
Nov 24, 2003
Sponsor introductory remarks on measure. (CR S15816-15819)
Nov 24, 2003
Introduced in Senate
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 Latest action November 24, 2003

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S15819-15827)

 Plain-English summary Congressional Research Service

Tax Shelter Transparency and Enforcement Act - Amends the Internal Revenue Code to revise provisions concerning tax shelters, including to: (1) set forth rules for use in applying the economic substance doctrine, including defining economic substance; (2) impose penalties on individuals who fail to include on any return or statement required information regarding reportable transactions; (3) impose a penalty of 40 percent (20 percent, if there has been adequate disclosure) of the understatement for a noneconomic substance transaction understatement; (4) direct a material advisor, with respect to any reportable transaction, to make a return describing the transaction, its potential tax benefits, and other information prescribed by the Secretary; (5) penalize an individual for making a statement with respect to certain tax statements (deductions, credits, and etc.) that an individual knows is false or fraudulent as to any material matter at the rate of 50 percent of the gross income derived from such activity; (6) authorize appropriations for the purpose of carrying out tax law enforcement to combat tax avoidance transactions and other tax shelters, including the use of offshore financial accounts to conceal taxable income; (7) permit the Secretary of the Treasury, in prescribing regulations governing the tax liability of an affiliated group of corporations making a consolidated return, to prescribe rules applicable to corporations filing consolidated returns that are different from other provisions concerning consolidated returns that would apply if such corporations filed separate returns; (8) require corporate tax returns to include a declaration by the chief executive officer (CEO), under penalty of perjury, that the return complies with the Internal Revenue Code and that the CEO was provided reasonable assurance of the accuracy of all material aspects of the return; (9) limit the basis of certain corporate property acquired by the issuance of stock or as paid-in surplus and for which there is the importation of net built-in loss to the property's fair market value immediately after the transfer of such property; and (10) repeal part V (Financial Asset Securitization Investment Trusts) of subchapter M (Regulated Investment Companies and Real Estate Investment Trusts).

 Related & companion bills 1
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
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APA
U.S. Congress. (2026). S. 1937: Tax Shelter Transparency and Enforcement Act. 108th Congress. Open America. https://openamerica.io/bill/108-S-1937/
MLA
"S. 1937: Tax Shelter Transparency and Enforcement Act." 108th Congress, 2026, Open America, https://openamerica.io/bill/108-S-1937/.
Bluebook (legal)
S. 1937, 108th Cong. (2026), https://openamerica.io/bill/108-S-1937/.
Markdown link
[S. 1937: Tax Shelter Transparency and Enforcement Act](https://openamerica.io/bill/108-S-1937/)
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