God And The IRS – And Kent Hovind!
I didn’t think anybody would ever be able to top “Call me Ishmael” as an opening line of a book, although “When Mr. Bilbo Baggins announced that he would shortly be celebrating his eleventy-first birthday” comes close. Professor Samuel Brunson has managed it though with his Thanksgiving line, at least in my book. Well his […]
First Circuit Says IRS Cannot Use Smell Test To Squash Plan To Funnel Millions Into Roth IRA
The Benensons had their Roth IRAs each invest $1,500 in JC Holding which owned JC Export, a newly formed DISC, in 2002. Then they had their family-owned manufacturing business Summa Holdings pay commissions on its exports which sent $5,182,314 to JC Export from 2002 to 2008. JC Holding had to pay corporate income tax (If JC Export had been owned outright the Roth would have had to pay the tax on unrelated business income). The after-tax balance ended up in the Roth ready to be invested tax free. They were not interested in the deferral feature. The whole point was to fatten up the Roth IRA with some of Summa’s after-tax income.
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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.