DOJ freezes $500M in tax shelters run by San Diego company

DOJ freezes $500M in tax shelters run by San Diego company

[JURIST] The Department of Justice has announced that a federal judge has ordered a freeze of $500 million in assets held by San Diego tax-planning company Xelan and its subsidiaries. The company has sold tax-reduction plans to about 4000 doctors and dentists worth at least $420 million in the past several years, prompting the DOJ to clamp down. The IRS and FBI searched Xelan's San Diego offices Thursday and audited returns from those purchasing tax reductions from the company. District Judge Thomas J. Whelan of the US District Court for the Southern District of California issued the order Tuesday. Read the DOJ press release announcing the action. The New York Times has more.