Obama touts Buffet Rule? IRS sues Warren Buffet’s NetJets Inc. for $366.3 million

InsideCounsel ^ | 3/2/12 | By Julie Beck

[OPS4]

you’re going to mess with the IRS, you should probably make sure you’ve paid your taxes first. That’s the moral you can extract from the tale of Warren Buffet’s private aircraft company, NetJets Inc, so far. In November 2011, NetJets, owned by Buffet’s Berkshire Hathaway Inc., sued the Internal Revenue Service (IRS) for $642.7 million in allegedly illegally imposed ticket taxes and penalties. Now, four months later, the IRS is suing NetJets for $366.3 million in unpaid taxes.

[OPS4]

So Obama uses a Tax fraud like Buffet to set his Rules up for all of us to follow? Obama is clueless.

[musicman]

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[SgtHooper]

Although I find it hypocritical, it makes business sense, since he will settle for millions less than what he should pay.

My rule - if ya owe it, pay it!

[USNBandit]

In this case it may not be a tax fraud. NetJets is not a unique company. It is a fractional jet services company. NetJets isn't the first of its kind, but it is definitely one of the biggest. There is some disagreement between the IRS and NetJets regarding the type of service they provide and what part of that is taxable. I would doubt NetJet's lawyers would fight this if it was a sketchy argument.

It does make for good political theatre in the midst of Buffett running around screaming "tax me more!"

[OPS4]

NetJets owes money, that has been clarified by Cavuto and his pals on Fox. How much is the remaining question.
Using tax loop holes in his corporations, does not
coincide with his tax the rich speech which President OBOZO
is running around the world touting.

[USNBandit]

NetJets manages fractional ownership of corporate aircraft. Those owners pay a service fee for maintenance and crewing of aircraft which are owned by the fractional owners.

The $600+million the IRS wants is in ticket taxes that are levied against commercial tickets and charter companies. What the IRS wants is for NetJets to collect a similar ticket tax for fractional owners to use their own jets.

One of the other complaints of NetJets is that the IRS has not charged other fractional companies with the same tax placing NetJets at a price disadvantage with their competitors.

[Tucker39]

Amen! And on that subject; Am I out of line for being pi$$ed when El Rushbo, et al, flack for some tax resolution outfit, and use as their poster boy supposedly real living truck driver who has NOT FILED INCOME TAX RETURNS FOR YEARS, and then gloat over the claim that they can get him off the hook for 20 cents or less on the dollar?!

Since I’ve always paid every penny of mine, I’d rather say, “FRY THE SOB! Am I being unreasonable....or am I a chump for paying mine every year?

[CFIIIMEIATP737]

You’re not a chump for paying every year. Wealthy people spend a lot of time with financial advisers seeking every possible deduction.

I’m not wealthy, but in addition to my regular job I have a home business. It only makes a few hundred dollars a year, but the tax advantages are tremendous.

[SgtHooper]

Those commercials have always hacked me off. Dadnabbit, if they owe the taxes, pay em! Full amount! It’s getting something for nothing, or a helluva lot less.