TBD on Ning
geee all that discrimination and stuff at the irs....
guess why else they wanna whine and play the victim?
Billionaire Seeks $186 Million Tax Refund, Claims IRS Biased By 'Politically Charged Atmosphere'
Billionaire investor Peter R. Kellogg and IAT Reinsurance Co. Ltd., the Bermuda-based insurance company his family owns, are suing the Internal Revenue Service for refunds of $186 million in taxes and interest they paid after the IRS revoked IAT’s tax-exemption retroactively. In court documents, Kellogg and IAT claim IRS officials were “unduly prejudiced” against them by a “politically charged atmosphere” created by journalists and that the IRS arbitrarily timed the revocation to maximize the taxes owed and “punish” them.
The IRS also disallowed IAT’s deduction of $1.3 million in business and personal travel expenses for Kellogg in 2000 and 2001. IAT argues its board properly authorized payment for Kellogg’s personal travel since it “recognized the need for Mr. Kellogg to travel privately because of his status including being listed by Forbes magazine.” Forbes estimates that Kellogg, 70, is worth $2.7 billion. He ran Wall Street’s top market maker, Spear, Leeds & Kellogg, until engineering its sale to the Goldman Sachs Group in 2000 for $6.5 billion.
Kellogg’s use of a 501(c)(15) tax exempt insurance company to shield hundreds of millions in capital gains from tax was first exposed in a March 2001 Forbes cover story on the proliferation of edgy and over the edge tax shelters, Are You A Chump? Back then, the law limited the tax exemption to companies writing no more than $350,000 a year in premiums, but did not cap the investment income or assets exempt insurers could have. So in 1999, Forbes reported, IAT wrote $3,330 in premiums, earned $179 million on its investments and ended the year with $330 million in assets. (Full disclosure: I was the author of that Forbes article.)The Forbes 2013 Investment Guide 
Janet Novack Forbes Staff
The loophole got even more attention in April 2003 when The New York Times published a long story on 501(c)(15), also featuring Kellogg. David Cay Johnston, the author of that article, also singled out Kellogg in his December 2003 book, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benef... . (Johnston is now a columnist for Tax Analysts and lecturer at Syracuse University Law School.)
Kellogg’s assertions about the IRS’ bias and political sensitivity are contained in three previously unreported refund lawsuits he and IAT filed in the Court of Federal Claims at the end of April—before the public disclosure that the tax exempt division had improperly singled out 501(c)(4) exempt....
http://www.forbes.com/sites/janetnovack/2013/06/17/billionaire-seek...
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Replies to This Discussion
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Permalink Reply by LoveLife&Laughter on
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...oh, bother.
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They think (at least they think they do) it's the only way to win elections. What a country.
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Permalink Reply by exedir on
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errata, it is 501c4...which have become the vehicle of choice after the Citizens United decision by those of all the political persuasions.
The IRS issue that arose with these groups was how to define, primarily vs. exclusively, "social welfare" as the object to the entity's purpose. The main benefit for the 501c's is tax exempt and they are not required to disclose donors.
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