BLIPS

For other uses, see Blips (disambiguation).

BLIPS is an acronym for Bond Linked Issue Premium Structure, or Bond Linked Investment Premium Strategy. It is a type of tax shelter involving investors who take out bank loans that the government considers illegitimate. These loans are then shifted to partnerships to claim tax losses.[1]

BLIPS are invalid in the eyes of the Internal Revenue Service (IRS).[2]

  1. ^ Lynnley Browning, Judge Rules a Tax Shelter in KPMG Case Is Legitimate, The New York Times, July 21, 2006.
  2. ^ Vaughn v. United States IRS, 765 F.3d 1174, 1177 (10th Cir. 2014).