It’s Over
When this case was announced in the media earlier this year there was some vilification of Mr. Egan, which I really think was misplaced. Mr. Egan was part of the team of people that helped put men on the moon. His team of advisers believed that there were geniuses in the national firms that had figured out a legitimate capital gain strategy. In retrospect, it is easy to say that they should have realized the game was up when KPMG told them they had to disclose.
Sauce for the Goose
The court did not bother to remand the case back to appeals given the amount of time that had passed. The IRS behaviour in this case is rather disturbing. My bet would be that Dr. Byk did in fact file his second quarter 941 near the dawn of the millennium. Either way the IRS looks really lame, though, not being able to explain the codes on documents that they introduce as evidence. On the other hand it is heartening to know that the tax court is there for us in this situation.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.