The year before, Congress passed a law that terminated many tax benefits of foreign trusts established by U.S. residents, treating them more like domestic trusts.

FORBES: On The Cover/Top Stories

Consequently, more and more of domestic trusts are using trust protectors.

FORBES: Trust Protectors: Coming Out of the Woodwork

They've been pushing everything from hidden offshore accounts, bogus domestic trusts and discredited "tax protester" arguments (say, that the income tax isn't legal) to abusive insurance, deferred compensation and charitable deduction schemes.

FORBES: The IRS Wants You To Fess Up