Execs, Firms to Take Reduced Tax Penalties

Dozens of executives and more than 30 corporations have agreed to take advantage of an Internal Revenue Service program that offers reduced penalties to those accused of trying to hide income through an abusive tax shelter, the agency said Monday.

The executives could have their taxable income adjusted upward by $500 million. An additional 19 executives who did not participate in the program face audits or criminal tax investigations into whether they underreported income by $400 million.

Executives had until May 23 to report their involvement in the shelter and participate in the settlement program, which requires them to pay a 10% penalty.