4 ms·

That is the dream. But remember that the IRS doesnt care much about the 90%. They DO care about the 0.1%. Doing something like that is a high risk way of gett

That is the dream. But remember that the IRS doesnt care much about the 90%. They DO care about the 0.1%. Doing something like that is a high risk way of getting audited.

vinceguidry 8y ago
There was just an article about how the IRS is doing fewer audits in recent years due to lack of resources and political cover.
- sehugg 8y ago
  Propublica: After Budget Cuts, the IRS’ Work Against Tax Cheats Is Facing “Collapse” https://www.propublica.org/article/after-budget-cuts-the-irs-work-against-tax-cheats-is-facing-collapse https://www.propublica.org/article/after-budget-cuts-the-irs...
GFischer 8y ago
But it's very hard to prove such fraud. If you artificially pump the value of an artist by a few well placed public auctions - the art might have been bought by a front man for the owner, then the IRS doesn't have a leg to stand on, as a "market value" for the artist has been established (my mother worked on auctions for a time and there were a lot of shady schemes to pump up value of collectibles). The 0.1 have access to the very best tax advisors money can buy (and probably some IRS insider info as well).
- radiantswirl 8y ago
  Finally someone's dropping real talk in this thread. It's so easy to game the system of charitable giving and make it profitable that it's a joke. Art Auction houses (arguably ) exist primarily to aid rich people's tax evasion. Guaranteed minimums on objects sold, "anonymous" sockpuppet buyers artificially bidding up prices, appraisals done by people with no incentive not to inflate prices -- all of these things make tax evasion easy for the .01%. When you're that rich you hire a former IRS agent who quit to work in the private sector. He helps you evade all the tax laws that he once worked to enforce, because he knows them better than anyone. Rich people can inflate the value of their artworks with trivial ease through the auction house system. All they're doing is avoiding taxes.
Tsubasachan 8y ago
Its not easy going after the super rich. They can, and do, hire the best and brightest.
charlesdm 8y ago
Getting audited is bad, why? The point is: can the IRS make their case and prove that whatever behavior by a taxpayer is not actually sound and proper? If you make a seemingly reasonable decision, even with an ultimate (very) beneficial tax outcome, there is not much that can be challenged if no laws have been broken. Add to that the army of lawyers that on meaningful cases will keep pushing things out forever, and you should have an understanding as to why tax authorities around the world do not like to challenge the very wealthy that much. They often also control companies and assets that employ people, which can be used as leverage in negotiations.
- deleted 8y ago
  [deleted]

That is the dream. But remember that the IRS doesnt care much about the 90%. They DO care about the 0.1%. Doing something like that is a high risk way of getting audited.

vinceguidry 8y ago

There was just an article about how the IRS is doing fewer audits in recent years due to lack of resources and political cover.

sehugg 8y ago
Propublica: After Budget Cuts, the IRS’ Work Against Tax Cheats Is Facing “Collapse” https://www.propublica.org/article/after-budget-cuts-the-irs-work-against-tax-cheats-is-facing-collapse https://www.propublica.org/article/after-budget-cuts-the-irs...

GFischer 8y ago

But it's very hard to prove such fraud. If you artificially pump the value of an artist by a few well placed public auctions - the art might have been bought by a front man for the owner, then the IRS doesn't have a leg to stand on, as a "market value" for the artist has been established (my mother worked on auctions for a time and there were a lot of shady schemes to pump up value of collectibles). The 0.1 have access to the very best tax advisors money can buy (and probably some IRS insider info as well).

radiantswirl 8y ago
Finally someone's dropping real talk in this thread. It's so easy to game the system of charitable giving and make it profitable that it's a joke. Art Auction houses (arguably ) exist primarily to aid rich people's tax evasion. Guaranteed minimums on objects sold, "anonymous" sockpuppet buyers artificially bidding up prices, appraisals done by people with no incentive not to inflate prices -- all of these things make tax evasion easy for the .01%. When you're that rich you hire a former IRS agent who quit to work in the private sector. He helps you evade all the tax laws that he once worked to enforce, because he knows them better than anyone. Rich people can inflate the value of their artworks with trivial ease through the auction house system. All they're doing is avoiding taxes.

Tsubasachan 8y ago

Its not easy going after the super rich. They can, and do, hire the best and brightest.

charlesdm 8y ago

Getting audited is bad, why? The point is: can the IRS make their case and prove that whatever behavior by a taxpayer is not actually sound and proper? If you make a seemingly reasonable decision, even with an ultimate (very) beneficial tax outcome, there is not much that can be challenged if no laws have been broken. Add to that the army of lawyers that on meaningful cases will keep pushing things out forever, and you should have an understanding as to why tax authorities around the world do not like to challenge the very wealthy that much. They often also control companies and assets that employ people, which can be used as leverage in negotiations.

deleted 8y ago
[deleted]