The OID Fraud And Criminal Gullibility
I have to say that I have some sympathy with the perspective that a reasonable person seeing the refund checks might want to take another look at the scheme. If they were incapable of understanding the reasoning behind the scheme and what OID actually is, it could be hard to resist. Something tells me that it might be people other than Ms. Rampton, who really belong in federal prison and that she is, herself, a victim of this scheme.
IRS Stampedes A Cattle Shelter
Interestingly, in attacking Mr. Gardner’s cattle activity, the IRS passed over both the silver bullet and the stiletto to go for the blunt instrument – Section 183. Section 183 is sometimes called the “hobby loss section”, but its application is much broader. Basically, if you post losses from an activity in which you are not trying to make a profit you can be denied those losses under Section 183. It is much worse than having the losses deferred under the passive activity loss rules. It may turn out to be even much, much worse than having the losses suspended under the at-risk rules, but we will save that for the end.
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.