Court affirms $8.46 million tax penalty

The Ninth Circuit Court of Appeals has affirmed the imposition of an $8,465,000 penalty for the promoter of a “bogus tax scheme” involving the donation of timeshare properties for charity.  (See Nonprofit Issues® Vol. XXXII, No. 1.)  In doing so, the Court affirmed a trial court determination on the scope of the “activity” by which the scheme should be measured for imposition of the penalties.