Thursday, September 17, 2015
Billionaires and the middle class alike can't hide from the IRS!!
To think you’re ever out of reach of the IRS is to think incorrectly. “Flying under the radar” is a term better left for situations not involving the IRS. Whether you’ve skipped filing a few tax returns over the years or if you posthumously owe $388 million in gift, estate and generation-skipping taxes, the IRS will eventually get what it believes it deserves. Was that last example too specific? That’s because it belongs to a story about how the estate of Bill Davidson, the deceased billionaire owner of the NBA’s Detroit Pistons, the WNBA’s Detroit Shock and the NHL’s Tampa Bay Lightning, was forced to pay $388 million to the IRS, after losing a lawsuit to challenge an assessment of additional taxes. Davidson’s estate was tax deficiencies are broken down by $187 million in gift taxes, $152 million in estate taxes and $49 million in generation- skipping taxes.