Warren Buffet is a Deadbeat Taxpayer

[I AM NOT THAT GUY 5,715]

Warren 'Raise My Taxes' Buffett's Company May Owe IRS $1 Billion

Using only publicly-available documents, a certified public accountant (CPA) detailed Berkshire Hathaway’s tax problems to ALG researcher Richard McCarty. Now, the American people have a better idea of how much in back taxes the company could owe Uncle Sam.

According to page 56 of the company report, “At December 31, 2010… net unrecognized tax benefits were $1,005 million”, or about $1 billion. McCarty explained, “Unrecognized tax benefits represent the company’s potential future obligation to the IRS and other taxing authorities. They have to be recorded in the company’s financial statements.”

He added, “The notation means that Berkshire Hathaway’s own auditors have probably said that $1 billion is more likely than not owed to the government.”

Read more: http://newsbusters.org/blogs/noel-sheppard/2011/08/30/warren-raise-my-taxes-buffetts-company-may-owe-irs-1-billion#ixzz1WcFGZBD8

[mawilson 2,133]

Now who owes an apology to whom?

[Mr. Big Dog 10,747]

Now who owes an apology to whom?

My money is on the RWN blog owing the apology to Warren.

[I AM NOT THAT GUY 5,715]

Buffett’s Billion-Dollar Tax Hypocrisy

So, on one hand Buffett advocates for paying more taxes, but when it comes to his own company’s taxes, he has gone through great lengths to pay less. That’s rich.

As the report chronicles, “We anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (‘IRS’) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months. The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years.”

McCarty pointed to a prior tax fight the company fought. “Apparently, this is not the first time that Berkshire Hathaway has tangled with the IRS. They fought a 14-year battle over the dividends received deduction. That case was just resolved in 2005,” McCarty said.

Although the prior case was settled in Buffett’s favor, it demonstrates a decades-long pattern of behavior by Buffett to minimize his taxes. That’s the important part of the story.

In politics, you don’t get to divorce your actions from your words, and if Buffett does not understand that, he ought not to step into the political arena. It led radio host Mark Levin, commenting on Buffett’s seeming tax avoidance hypocrisy, to ask, “Is Warren Buffett stupid?”

Leaving Buffett’s poor political instincts aside, since he says he wants to pay more, why not just pay it? The answer is likely that Buffett’s actions show that he does not actually want to pay more, he wants you to pay more.

Read more at NetRightDaily.com: http://netrightdaily.com/2011/08/buffetts-billion-dollar-tax-hypocrisy/#ixzz1Wd4dX8vK

[Captain Oates 911]

Deferred tax is a calculated balance sheet item and is usually highly theoretical because capital expenditure and other write offs in the future can drastically change the figure and avoid it becoming a current liability..

In reality it is an early warning to the company's tax planners to take action to avoid the deferred tax ever becoming payable

The RWNJ's must be conflicted about Buffet as he is both the most successful capitalist investor and has center left politics

[mawilson 2,133]

The RWNJ's must be conflicted about Buffet as he is both the most successful capitalist investor and has center left politics

There's no conflict. Wall Street is as center left as they come - they love government

bailouts, stimulus packages, zero percent interest rates, quantitative easing.

Why wouldn't they - it's free money.