The Internal Revenue Service obtained a temporary restraining order freezing more than $500 million allegedly related to a tax-shelter scheme marketed to physicians by Xelan, San Diego, a membership organization dating to 1971 that describes itself as an "Economic Association of Health Professionals." The money is held in investment accounts controlled by Xelan and an associated organization, Doctors Benefit Insurance Co., based in Barbados. Through Xelan, more than 4,000 doctors and dentists allegedly invested in illegal tax shelters disguised as supplemental disability insurance or charitable deductions. As a result, the physicians could owe more than $420 million collectively in back taxes, plus interest, the U.S. Justice Department said. The IRS this summer blocked a sale of Xelan, which with four affiliated companies filed for Chapter 11 bankruptcy protection in June. At deadline, Xelan officials could not be reached for comment. -- by Mark Taylor
IRS freezes $500 million in physician tax probe
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.