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Reuters: Ignoring Tax Cheats

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Scuba Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-28-11 12:44 PM
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Reuters: Ignoring Tax Cheats
http://blogs.reuters.com/david-cay-johnston/2011/09/27/ignoring-tax-cheats/


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Each year New York State lets real estate investors evade at least $200 million of taxes. In peak years the figure likely rises to $700 million, if known tax cheating in another state is any indication. Some of the investors who cheat New York State also cheat New York City out of at least $40 million annually.

Back in the 1990s Jerry Curnutt figured out how to finger such cheats when he was the top partnership specialist at the Internal Revenue Service. Curnutt’s computer sifted through tax returns until he learned how to separate thieves from honest taxpayers. The tax-evasion estimates of $200 million and $40 million are his.

Six New York state tax auditors took classes Curnutt taught in June 2000 and gave stellar evaluations. California’s top tax auditor praised Curnutt’s course as “effective, relevant and most importantly, appreciated and understood by our auditors.”

Why has nothing been done for more than 11 years to make the cheats in New York pay what the law requires?

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