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IRS: Not so fast claiming tax evasion.

By Marks & Katz, LLC

 Bill of Rights. (From the public domain.) Kudos to the United States Supreme Court for unanimously reversing a conviction for tax evasion and filing a false income tax return, where defendant Michael Boulware claimed his company had no earnings or profits for the tax years in question, and asserted the defense of a return on capital (i.e., a return on his investment of his personal assets into his own company).  As Justice Souter wrote for a unanimous Supreme Court in Boulware v. U.S., _ U.S. _ (March 3, 2008):  Sections [Internal Revenue Code] §§301 and 316(a) govern the tax consequences of constructive distributions made by a corporation to a shareholder with respect to its stock. A defendant in a criminal tax case does not need to show a contemporaneous intent to treat diversions as returns of capital before relying on those sections to demonstrate no taxes are owed...continue to full post

Full post as published by Underdog on March 05, 2008 (boomark / email).