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Buffett's Birkshire Hathaway Owes Taxes Back to 2002
- Thread starter pspr
- Start date
Quote from peilthetraveler:
http://www.irs.gov/newsroom/article/0,,id=232163,00.html
These are the rates the government charges interest at. 3% for underpayment and 5% if you are a large corporation.
Heck...maybe next year I wont pay taxes. I'll just pay them the 3% in interest. If I owe $50k in taxes, its better to just pay $1,500 in interest and let the money work for me. And if I ever go belly up,I will just go to one of those IRS lawyers that settle for pennies on the dollar. Its a win/win for me!
People do this all the time,I even went almost 4 years with out paying a years taxes because I needed the money to expand my business .The next 3 years I filed and paid taxes and they just kept sending letters stating that interest was piling up on the year I didn't pay and that they could take my assets,never a threat of jail.That was when I talked to my attorney about the issue and he explained what I posted earlier.He said the worst that could happen is they can garnish wages,put liens on my house ,car,bank account etc but I could never go to jail for not paying unless I fraudulently filed
If you have assets the IRS wont settle for pennies on the dollar
Quote from Maverick74:
Range Rover is talking out of his ass. Obviously everyone in the country who pays taxes would do that. If you make a million dollars a year and owe 500k in taxes, no one in their right mind would pay the 500k. They would just pay 15k. They would keep doing that every year till they died and then oops sorry, I'm dead now, can't pay the rest.
You're a fucking idiot.As I stated earlier this option is only for businesses and self employed people .Most people are employed and have most of their taxes taken from withholding taxes and the government usually withholds more then a person owes.You also cant do it forever because eventually the government will come after your assets
The reason they probably didnt bother with you was because the income from running your lemonade stand in front of your moms house in each of those years was less than 100$. Once you became a big shot and expanded your lemondade stand to three lemonade stands then they wanted a piece of the action. :
They sure seemed to be on my ass in a heartbeat when i owed them 75k, thinking back on it now, it was probably closer to 9 months before they were on me, not six as i originally stated.
They sure seemed to be on my ass in a heartbeat when i owed them 75k, thinking back on it now, it was probably closer to 9 months before they were on me, not six as i originally stated.
Quote from AK Forty Seven:
People do this all the time,I even went almost 4 years with out paying a years taxes because I needed the money to expand my business .The next 3 years I filed and paid taxes and they just kept sending letters stating that interest was piling up on the year I didn't pay and that they could take my assets,never a threat of jail.That was when I talked to my attorney about the issue and he explained what I posted earlier.He said the worst that could happen is they can garnish wages,put liens on my house ,car,bank account etc but I could never go to jail for not paying unless I fraudulently filed
If you have assets the IRS wont settle for pennies on the dollar
Quote from pspr:
You don't get an extension to pay your taxes! You just get an extension to file your return. You have to pay your taxes by April 15th or the penalty and interest starts accruing whether you've filed an extension or not.
Absolutely correct. All taxes are owed on April 15th no matter what!
Buffettâs Billion-Dollar Tax Hypocrisy
By Bill Wilson
8/30/11
Writing for the New York Times recently, Berkshire Hathaway chairman and chief executive Warren Buffett called for taxes to be increased on the so-called âsuper-rich,â suggesting that he and his elite billionaire and millionaire friends are itching to pay more.
Buffett wrote, âMost wouldnât mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.â
Of course, if thatâs the case, why doesnât Buffettâs company settle its own ongoing tax disputes with the Internal Revenue Service (IRS)? As Americans for Limited Government (ALG) has reported exclusively â a story given national attention by a New York Post editorial â according to Berkshire Hathawayâs own annual report, the company has been embroiled in an ongoing standoff over its tax bills.
Using only publicly-available documents, a certified public accountant (CPA) detailed Berkshire Hathawayâs tax problems to ALG researcher Richard McCarty. Now, the American people have a better idea of how much in back taxes the company could owe Uncle Sam.
According to page 56 of the company report, âAt December 31, 2010⦠net unrecognized tax benefits were $1,005 millionâ, or about $1 billion. McCarty explained, âUnrecognized tax benefits represent the companyâs potential future obligation to the IRS and other taxing authorities. They have to be recorded in the companyâs financial statements.â
He added, âThe notation means that Berkshire Hathawayâs own auditors have probably said that $1 billion is more likely than not owed to the government.â
$1 billion is not an insignificant chunk of change, even for Buffett, representing about 0.2 percent of the companyâs $372 billion in total assets.
So, on one hand Buffett advocates for paying more taxes, but when it comes to his own companyâs taxes, he has gone through great lengths to pay less. Thatâs rich.
As the report chronicles, âWe anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (âIRSâ) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months. The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years.â
McCarty pointed to a prior tax fight the company fought. âApparently, this is not the first time that Berkshire Hathaway has tangled with the IRS. They fought a 14-year battle over the dividends received deduction. That case was just resolved in 2005,â McCarty said.
Although the prior case was settled in Buffettâs favor, it demonstrates a decades-long pattern of behavior by Buffett to minimize his taxes. Thatâs the important part of the story.
In politics, you donât get to divorce your actions from your words, and if Buffett does not understand that, he ought not to step into the political arena. It led radio host Mark Levin, commenting on Buffettâs seeming tax avoidance hypocrisy, to ask, âIs Warren Buffett stupid?â
Leaving Buffettâs poor political instincts aside, since he says he wants to pay more, why not just pay it? The answer is likely that Buffettâs actions show that he does not actually want to pay more, he wants you to pay more.
By Bill Wilson
8/30/11
Writing for the New York Times recently, Berkshire Hathaway chairman and chief executive Warren Buffett called for taxes to be increased on the so-called âsuper-rich,â suggesting that he and his elite billionaire and millionaire friends are itching to pay more.
Buffett wrote, âMost wouldnât mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.â
Of course, if thatâs the case, why doesnât Buffettâs company settle its own ongoing tax disputes with the Internal Revenue Service (IRS)? As Americans for Limited Government (ALG) has reported exclusively â a story given national attention by a New York Post editorial â according to Berkshire Hathawayâs own annual report, the company has been embroiled in an ongoing standoff over its tax bills.
Using only publicly-available documents, a certified public accountant (CPA) detailed Berkshire Hathawayâs tax problems to ALG researcher Richard McCarty. Now, the American people have a better idea of how much in back taxes the company could owe Uncle Sam.
According to page 56 of the company report, âAt December 31, 2010⦠net unrecognized tax benefits were $1,005 millionâ, or about $1 billion. McCarty explained, âUnrecognized tax benefits represent the companyâs potential future obligation to the IRS and other taxing authorities. They have to be recorded in the companyâs financial statements.â
He added, âThe notation means that Berkshire Hathawayâs own auditors have probably said that $1 billion is more likely than not owed to the government.â
$1 billion is not an insignificant chunk of change, even for Buffett, representing about 0.2 percent of the companyâs $372 billion in total assets.
So, on one hand Buffett advocates for paying more taxes, but when it comes to his own companyâs taxes, he has gone through great lengths to pay less. Thatâs rich.
As the report chronicles, âWe anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (âIRSâ) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months. The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years.â
McCarty pointed to a prior tax fight the company fought. âApparently, this is not the first time that Berkshire Hathaway has tangled with the IRS. They fought a 14-year battle over the dividends received deduction. That case was just resolved in 2005,â McCarty said.
Although the prior case was settled in Buffettâs favor, it demonstrates a decades-long pattern of behavior by Buffett to minimize his taxes. Thatâs the important part of the story.
In politics, you donât get to divorce your actions from your words, and if Buffett does not understand that, he ought not to step into the political arena. It led radio host Mark Levin, commenting on Buffettâs seeming tax avoidance hypocrisy, to ask, âIs Warren Buffett stupid?â
Leaving Buffettâs poor political instincts aside, since he says he wants to pay more, why not just pay it? The answer is likely that Buffettâs actions show that he does not actually want to pay more, he wants you to pay more.
Quote from Max E. Pad:
The reason they probably didnt bother with you was because the income from running your lemonade stand in front of your moms house in each of those years was less than 100$. In other words, you were not worth their time.
They sure seemed to be on my ass in a heartbeat when i owed them 75k, thinking back on it now, it was probably closer to 9 months before they were on me, not six as i originally stated.
Too funny! Yeah the government will look in your bank account and see if you have money. They also check withdrawals and wires to see if you are moving money around. If you are dead broke, they are not going to come after you.
Range Rover's mom was smart enough to keep his allowance small enough as to not tip off uncle sam. Range Rover should be thankful his mom was looking out for him.
Quote from AK Forty Seven:
You're a fucking idiot.As I stated earlier this option is only for businesses and self employed people .Most people are employed and have most of their taxes taken from withholding taxes and the government usually withholds more then a person owes.You also cant do it forever because eventually the government will come after your assets
Dude, you are referring to people who work at McDonalds which explains a lot to me. LOL.
BTW, anyone can file with their employer to NOT withhold their taxes and pay them separately.
Quote from Maverick74:
Too funny! Yeah the government will look in your bank account and see if you have money. They also check withdrawals and wires to see if you are moving money around. If you are dead broke, they are not going to come after you.
Range Rover's mom was smart enough to keep his allowance small enough as to not tip off uncle sam. Range Rover should be thankful his mom was looking out for him.
Thats the thing, they knew right when I had the money so they could pin me, because i was working with two different trading firms, i was trading with a deposit on the one trading account and simply getting a cheque for whatever i made, then one month when i had a big month, i stuck in the cheque for 30k, and it was gone a couple days later, so they were definately monitoring it for when they could get the most money. Then on top of that they started calling my trading firm, and they almost got me fired because the firm didnt want to deal with it. They made sure they didnt call my firm before they swiped the first 30k though, because they want to catch you by surprise when they first empty your account.
These guys are ruthless assholes when you owe them money, they couldnt care less if you have enough money in your account to gas up your car and drive to work, or if what they do can get you fired, they just want their money.
This was completely my fault though, because i wasnt responding to any of the letters they were sending me, i just figured i could give them the money whenever i had it, and pay interest, and i was dead wrong.
Quote from Maverick74:
Too funny! Yeah the government will look in your bank account and see if you have money. They also check withdrawals and wires to see if you are moving money around. If you are dead broke, they are not going to come after you.
Range Rover's mom was smart enough to keep his allowance small enough as to not tip off uncle sam. Range Rover should be thankful his mom was looking out for him.
Yet all these rich celebrities go years before The the IRS starts filing tax liens
Roy owes over 3 million form 2003.Roy has made at least 40 million since 2003 yet the IRS didn't file a lien against him for 2003 taxes until 2008
You can find numerous examples of working celebrities who taxes but the IRS starts filing tax liens years after the taxes are owed from this website
You and the dumbass you quoted are both fucking idiots
http://apps.detnews.com/apps/blogs/taxingdetroitblog/index.php
Uncle Sam pummels boxing great Roy Jones Jr.
Former heavyweight champ Roy Jones Jr., considered by many the best pound-for-pound boxer in history, is getting pounded by the IRS. The 42-year-old HBO boxing analyst, who is making an ill-advised comeback fight this spring, owes more than $3.5 million in delinquent federal taxes, records show.
Jones, 42, joins a long line of boxing greats in tax trouble, including memorabilia-hocking Kronk Gym legend Thomas Hearns and Grand Rapids native Floyd Mayweather Jr.
He will get back into the ring May 22 in tax-friendly Russia.
What's owed:
The IRS filed a $2,946,650 lien against him Feb. 11, 2008, in Santa Rosa County. He owes income taxes from 2003 and 2004, according to this lien.
The IRS filed a $629,085 lien against Jones on March 21 with the Santa Rosa County Clerk in Florida. According to the lien, which you can see below, he owes income taxes from 2009.