Guilty again. Former Jenkens and Gilchrist tax shelter wizard Paul Daugerdas was again convicted on tax crime charges yesterday arising out of the great tax shelter frenzy of the Clinton and Bush II years. A previous conviction was overturned on grounds of juror misconduct. Bloomberg Businessweek reports that he was convicted on seven of 16 counts.
A co-defendant, former BDO Seidman CEO Denis Field, was acquitted.
Mr. Daugerdas built a fortune around tax shelters with clever names like “HOMER,” “CARDs” and “BLISS.” The shelters typically involved offsetting investment positions, with losses allocated to shelter customers and gains allocated to tax-indifferent offshore entities. The shelters have fared poorly on exam and in the courts, with a nearly unbroken record of failure in litigated cases.
Mr. Daugerdas built a fortune around selling access to the Tax Fairy, the magical sprite who waves her wand to make tax problems go away. The news that there is no tax fairy proved costly to his clients, and probably also to him.
Clunk. Cash for Clunkers was an expensive boondoggle, reports the Brookings Institution. The study estimates that the program cost $1.4 million per “job created” while destroying thousands of perfectly good vehicles and raising transportation costs for those who rely on used cars.
Related: Braley: “Cash for Clunkers” phenomenally successful (Radio Iowa)
Kyle Pomerleau, Cash for Clunkers: Not Much of a Stimulus (Tax Policy Blog)
Paul Neiffer, Calculating Cost Basis Wrong Can Be Costly!
Tax Trials, IRS Resumes Field Exams & Collections. The shutdown is truly over.
Phil Hodgen’s series on the expatriate exit tax continues with Chapter 4 – Are You A Covered Expatriate?
TaxProf, The IRS Scandal, Day 176
Robert D. Flach is celebrating his 60th birthday with a sale.
Howard Gleckman, As Budget Talks Start, Beware the Bogus Revenue Hikes (TaxVox) “But behind the scenes, Washington’s wink-and-nod crowd thinks it has a solution: Raise new tax revenue—at least on paper—without actually increasing taxes. In fact, some of the gimmicks on the table create even darker Halloween magic.”
Tax Justice Blog, Kansas: Dispatches from a Failing Experiment
Going Concern, Career Conundrum: Is a Master’s Degree Worth It? It’s all relative. To me it was, because my it was in Accounting, while my B.A. was in History — a noble field, but one with grim employment prospects. If you have an undergrad degree, I’m not so sure it’s worth forgoing a year or two of salary. If you don’t have a job anyway, it may be the edge you need.
Kay Bell, A colorful way to ease IRS notice fears:
Adam Chodorow, however, has an idea of how to ease such tax correspondence induced panic attacks.
Chodorow, a professor at Arizona State’s Sandra Day O’Connor College of Law, suggests color-coding so that taxpayers will immediately know the amount of tax trouble they are in. This, he says, could abate taxpayer stress.
If the IRS could be relied on to issue accurate notices, that would be lovely, but incorrect “red” notices would probably induce a rash of taxpayer heart episodes.