Tax Shelter Case Dismissed

An entry on the TaxProf Blog discusses the Department of Justice's decision to dismiss a civil case against  xélan, Inc. that involved over 3,500 San Diego-area doctors and dentists involved in allegedly fraudulent tax shelters.  After trumpeting the filing of the civil action and the entry of a TRO freezing the company's assets, the TRO was subsequently lifted and last week, with much less fanfare (i.e. none), the DoJ dismissed the civil case.  Professor Caron describes the decision to dismiss the case as a "stunning reversal."