[Liz]

Corporate profits reported to the I.R.S. in 1998 were $155 billion less than those reported to shareholders, according to Mihir A. Desai, a Harvard economist. His study and others suggest that tax shelters may be the primary reason for this difference, which is costing the government as much as $54 billion in taxes each year.

The Clinton Legacy continues.

Enron created 881 offshore subsidiaries, 692 of them in the Cayman Islands, as part of its strategy to avoid taxes.

Duh. Who would have ever guessed this was illegal (/sarcasm off). So, I guess Arthur Andersen didn't have a clue?

[The Toad]

So, the tax-code is so complex that the IRS doesn't even understand it. LOL. Not much of a surprise really. With so many rules, there are going to be contradictions that someone who really knows the laws can exploit.

This is just another argument for a flat tax.

[em2vn]

Any ideas as to how union members will be blamed for this?

[cyncooper]

Corporate profits reported to the I.R.S. in 1998 were $155 billion less than those reported to shareholders,

But the NY Times makes sure to insert:

Enron, the Houston-based energy trading company, was one of the most politically connected businesses in the country, with ties to President Bush and many other federal officials.

[aruanan]

It involves lots of other companies and how they inundated the I.R.S., out-complexed the I.R.S. The I.R.S. just cannot handle the complexity of some of these transactions."

Too bad someone can't come up with a $19.95 Complexity Kit for the average guy who is being porked by Congress via the IRS.

[VRWC_minion]

What a bunch of bull. The IRS knows exactly what the score is. This stuff is argued daily in tax court, in appeals etc.

[jlogajan]

If the IRS can't understand the tax code, it sure isn't Enron's fault.