you're reading...
California Public Utilities Commission, CaliforniaALL, Carol Liu, ccpf, CPUC, Michael Peevey, Ophelia Basgal

Article Re CPUC’s Michael Peevey and Spouse Carol Liu Problems with the Internal Revenue Service (TLR Note: Notice attitude of IRS will not be able to find scheme)

“They are learning their trusted advisors and accountants and
lawyers sold them a bill of goods,” he said. “They weren’t told a
lot of information they should have been told.”

Peevey and Liu paid Andersen $225,000 for their tax plan.

In many cases, tax officials say, the firms created shelters they
knew were abusive but sought to paper them over with various
complicated accounting maneuvers.

“It was clear these firms were banking on us not finding these
schemes,” said Rossotti, the former IRS chief. “The logic was, the
IRS will never find out about it, and if they do find out it will
take years to litigate, and you will only have to pay part of the
taxes back.”

The accounting firms say the tax code is extremely complex and much
of it is open to interpretation. The firms note that clients were
told upfront that these strategies were merely an interpretation of
the tax code, one that the IRS and state tax officials could
ultimately reject.

Signs of trouble for Peevey didn’t come until two years after the
energy executive moved his money into the shelter in 1999. By then,
federal regulators were investigating Anderson as part of the Enron
scandal, and they came across the tax plan sold to Peevey and about
a dozen other clients.

By spring of 2002, the plan Peevey had locked himself into began to
fall apart. The IRS informed Peevey he was being audited.

The news came to him as he was diagnosed with lung cancer and he was
undergoing a tough confirmation process for his appointment to the
utilities commission. Consumer groups charged that his background as
former president of Southern California Edison made him too cozy
with industry.

Source @:
http://groups.yahoo.com/group/asianamericanartistry/message/5378

Advertisements

About Leslie Brodie

Leslie Brodie is a reporter, writer, blogger, activist, and a religious leader in the community.

Discussion

Comments are closed.

Categories

RSS .

  • Another Clifford Ham boondoggle in San Diego 2017/04/19
    More false promises of tunnels reaching out from jails to courthouses. Don’t say we didn’t tell you so because we’ve stated many times that ALL tunnel promises are false promises made to win local support of the projects and penciled out upon approval. What we find most disturbing is that Clifford Ham has a track […]
    Judicial Council Watcher
  • Writing our obit is a bit premature… 2017/04/06
    Welcome to 2017! Yeah, we know, a bit of time has passed since we’ve been hyperactive here. We’ve been a bit busy frying other fish.  If you consider yourself a progressive, you’ve already read and possibly even recognized our work elsewhere. We will be continuing those projects and check in here as not to neglect […]
    Judicial Council Watcher
  • Welcome to the first business day of our reinvigorated 10 year run! 2017/01/02
    Thanks to the sheer incompetence of Judicial Council staff leadership, we’re going to be spending the next ten years nipping at their heels. Last week, the San Francisco trial court ruled that the Jacobs entities maintained their contractors license and that the 22.7 million that the Judicial Council should have been able to recover is […]
    Judicial Council Watcher
  • Working for the Judicial Council and a pattern of racketeering activity 2016/10/31
    The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. The RICO Act focuses specifically on racketeering, and it allows […]
    Judicial Council Watcher
  • Is the CJA suddenly an unauthorized collective bargaining unit? 2016/10/27
    (JCW is responsible for retitling this press release)(JCW also feels that this is a great reason to surrender your CJA membership and join the ACJ and no, we’re not judges or affiliated with the ACJ in any manner) October 25, 2016 Last May, the California Judges Association crowed that it had been given “a seat […]
    Judicial Council Watcher

RSS Drudge Report Feed

.
%d bloggers like this: