Robert Redford’s New York Tax Trouble Provides Lessons For Planners
Most states follow federal principles pretty closely in computing state taxable income but note well the caveats in that statement. “Most states” and “pretty closely”. It probably came as a very unpleasant surprise that inserting an S corporation into the chain of tiered entities can make a big difference in New York state’s view of the transaction, but there you have it
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.
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.