First 2005 Tax Time media con "Snared by Their Shelters" (Rich in trouble?

[papau]

http://www.latimes.com/news/local/la-me-peevey10jan10.story
COLUMN ONE
Snared by Their Shelters
Thousands of wealthy Americans are paying dearly for questionable tax-avoidance schemes, and blaming the experts who proposed them.
By Evan Halper
Times Staff Writer

January 10, 2005

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 an additional $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." <snip>

[aquart]

1. Do ONLY Democrats get caught?

[papau]

2. Under Bush - more or less - but newly rich GOP often tossed to curb

The really rich never get caught.

[Kansas Wyatt]

3. No LOYALTY card....

No free pass, and you will be watched closely.