LAT: Jig Is Up for Tax Evaders

[RamboLiberal]

http://www.latimes.com/news/nationworld/nation/la-me-peevey10jan10,0,6951835,print.story?coll=la-home-headlines

As one of the state's top energy regulators, Michael Peevey is familiar with complicated schemes. Now he finds himself caught in one.

In the late 1990s, he started and sold his own energy company, came away with $10 million in stock from its new owner — a company called Applied Energy Systems — and plenty of advice. At the advice of accountants, he put the proceeds into an investment plan that promised to shield his windfall from taxes and produce another $1 million for a gift to UC Berkeley, his alma mater.

"I was assured the transaction was low-risk and safe," recalled Peevey, now the president of the state's Public Utilities Commission.

A few years later, he and his wife, Assemblywoman Carol Liu (D-La Cañada-Flintridge), heard from the Internal Revenue Service. By the agency's accounting, the couple owed Uncle Sam $2.36 million. The state would soon be demanding $1.1 million on top of that.

Peevey is now suing his accounting firm, Arthur Andersen, for $30 million. The firm, Peevey said, "let me down, and I think they took advantage of our long-standing relationship."

[aquart]

1. What a surprise. They're Democrats.

What about Arthur Andersen's other customers?

[struggle4progress]

5. Bingo. eom

[Liberty Belle]

2. You left off the title, which says it all:

Snared by Their Shelters:

Thousands of wealthy Americans are paying dearly for questionable tax-avoidance schemes, and blaming the experts who proposed them

:nopity: :nopity: :nopity:


Serves them right. With luck, Bush will manage to piss off the one group of voters who still support him: greedy rich people.

[yinkaafrica]

3. Just do like Cheney do!

[Lorien]

4. The only tax evaders I know personally

are both republicans. :D