(Reuters) - Citigroup Inc. and Lehman Brothers Holdings Inc.
, in April received information document requests from
the IRS, which questioned the use of derivatives by offshore
investors. These clients may have sidestepped withholding taxes
on U.S. stock dividends, the people said.
The probe is focused on derivatives trades where securities
firms buy stocks from offshore hedge-fund clients. In return,
the banks pay them any principal return and dividends these
stocks generated.
Read more at Reuters.com Government Filings News
, in April received information document requests from
the IRS, which questioned the use of derivatives by offshore
investors. These clients may have sidestepped withholding taxes
on U.S. stock dividends, the people said.
The probe is focused on derivatives trades where securities
firms buy stocks from offshore hedge-fund clients. In return,
the banks pay them any principal return and dividends these
stocks generated.
Read more at Reuters.com Government Filings News
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