Current Events — HabitableZone

Current Events » in reply to You were lucky.

I've seen 'em be screwy.

I have a super-wealthy friend whom they decided to audit once. It's largely inherited money, so there is his money, his kids money, the family foundation, and many, many interlocking business and sub-business matters. He has a full-time accountant who keeps track of things which go to the CPAs.

He is also super-conservative, both in politics and financial matters. He pays every conceivable tax, does not like the IRS but wants no troubles. I bought some real estate once and signed a note from him for $20,000 at 6%. When due I paid it back, but he had torn up the note and had another one with no interest. "I'd just have to pay taxes on it", he said. "Too much of a nuisance."

They decided to audit him once. He moved his bookkeeper out of the office, gave them that one, and they stayed there for 6 weeks. Found absolutely nothing questionable. Then they started out after a company of which he was a director for a number of years, wondering whether the funds paid for that should be included in Social Security.

The auditors had found a sinecure and weren't going to let go. Nice digs, easy work.

It took a threatened suit to get them to go away.

An example of your being right.

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