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F. Lee Bailey Bankruptcy Rooted In Poor Record Keeping

F. Lee Bailey Bankruptcy Rooted In Poor Record Keeping

From the Tax Court decision, I think that might be both true and untrue.  The DuBoc debacle is probably why Bailey faced such a big audit covering the years 1993 through 2001.  If Bailey had had good accounting done, there would not have been all that much to find, though.  There were a host of problems with omitted income and unsubstantiated deductions that have more of the hallmarks of inattention rather than trying to get away with anything.

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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.