May 5, 2014

“Too Big To Audit? Large Partnerships Escape IRS Scrutiny, GAO Reports”

CNS News:

In 2011, while the Internal Revenue Service (IRS) was busy scrutinizing the tax-exempt status of 100 percent of Tea Party groups and other conservative non-profits, the tax agency did not audit a single high-value electing large partnership (ELP) with more than $100 million in assets.

That’s according to a preliminary report released to Congress by the Government Accountability Office (GAO) April 17th. (See GAO.pdf)

An ELP is a business entity with more than 100 partners and more than $100 million in assets that is required to file a 1065-B tax return every year. They include large private equity firms, hedge funds and oil and gas partnerships.

“No partnerships that filed a Form 1065-B from tax years 2002 to 2011 had their tax return audited and closed by IRS from fiscal years 2007 to 2013,” a footnote on page 14 of the GAO report stated.

Jim White, a spokesman for GAO, confirmed that no ELPs were audited by the IRS between 2007 and 2013, the last year statistics are available. However, he pointed out that there were only 15 ELPs out of 105 filing 1065-B returns nationwide in 2011 that met the $100 million asset threshold.

Another 2,211 partnerships filed under IRS Form 1065 in 2011, “but only 20 audits (or less than one percent) were closed that year,” White told CNSNews.com, acknowledging that “this is a very low audit rate.”

[...]

“These are the big guys,” said Amy Elliott, legal editor at the non-profit Tax Analysts, who pointed out that some ELPs have up to $20 billion in assets. “The IRS should be looking at them more.”

Tax Analysts put a video up on You Tube explaining why the IRS treats these large partnerships as essentially  too big to audit.

“So, were you the one that said at Tax Analysts that these are basically unaudited entities at this point, or ‘audit proof’ I guess was the word used?” CNSNews.com asked Elliott.

“Right, I mean, I think there is a sense among partnership practitioners that these entities are essentially audit-proof,” she replied.

Reached for comment, several nascent TEA Party groups forced by the IRS to disclose membership lists, or answer questions about members’, etc., replied “the fuck?”

Liberal fascism, as I’ve repeatedly argued, is the natural stopping point for all those power-mad politicians who purport to be taking us toward Utopian socialism.  The ruling elite isn’t going to give up its power, but it needs big business to kick back to campaign funding in exchange for corporate welfare and rules that reduce competition.

It’s a symbiotic relationship that only ends when the government is able to nationalize industry, and to do so too aggressively would ruin the phony veneer of a market system that Americans still overwhelmingly believe in.

So.  The collusion is all but complete and entrenched.  And it doesn’t matter which party is in power.  As the current GOP establishment stance on “comprehensive immigration reform” all but proves.

Posted by Jeff G. @ 12:04pm
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Comments (5)

  1. The people who manage those accounts are the people the IRS turns to for advice on interpreting the laws. People with that kind of knowledge and skill are far too expensive to work for Uncle Sam.

  2. Pingback: The Camp Of The Saints

  3. - Its always much easier to beat the house odds when you own the casino.

    - Meanwhile bonehead has assigned a real Congressional bulldog as head of the newest Benghazi epic string of “Heres what the fucking Democrats do with their governmental powers and theres not a damn thing we seem to be able to do about it” hearings.

    - Or put another way, Jeff is probably right about his suspicions of why nothing ever seems to get done in these Obamable scandals.

  4. Monarchy -> Constitutional Republic -> Liberal Fascism -> Fascism -> Socialism/Communism

    THE ROAD TO PERDITION

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