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Tax Shelter Guru Gets $60 Million IRS Penalty And No Day In Court

Tax Shelter Guru Gets $60 Million IRS Penalty And No Day In Court

Due to circumstances beyond the scope of this post, John Larson was one of the very few participants who ended up doing time because of all these shenanigans.  Being generally aware of these circumstances I was puzzled about how he could have possibly had the $1.4 million that he put up to try to get his day in court.  I found a clue in another decision that came down while he was still in prison.  Larson had originally been fined $6 million, which he paid.  He appealed the fine and a court cut it in half, but the IRS went for a jeopardy assessment on the refund, because they were still not done with him civilly.  In the litigation on the jeopardy assessment we get:

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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.