Tax Shelter Transparency and Enforcement Act

[AI summary unavailable — showing source text] Tax Shelter Transparency and Enforcement Act - Amends the Internal Revenue Code to revise provisions concerning tax shelters, including to: (1) set forth rules for use in applying the economic substance doctrine, including defining economic substance; (2) impose penalties on individuals who fail to include on any return or statement required information regarding reportable transactions; (3) impose a penalty of 40 percent (20 percent, if there has been adequate disclosure) of the understatement for a noneconomic substance transaction understatement; (4) direct a material advisor, with respect to any reportable transaction, to make a return describing the transaction, its potential tax benefits, and other information prescribed by the Secretary; (5) penalize an individual for making a statement with respect to certain tax statements (deductions, credits, and etc.) that an individual knows is false or fraudulent as to any material matter at the rate of 50 percent of the gross income derived from such activity; (6) authorize appropriations for the purpose of carrying out tax law enforcement to combat tax avoidance transactions and other tax shelters, including the use of offshore fina…