And Chicago tax lawyer Robert E. McKenzie, who has defended rich folks claiming losses on everything from deer farms to race horses to yachts, says the Romneys -–despite the fact that Ann Romney’s statements on what dressage has done for her personally suggests lack of profit motive– likely did all the paperwork right and can assert they thought they’d make a profit, even if they never do. “The way I would argue it is `this horse competed in the Olympics and we’ll breed it and make money off the foal’,’’ says McKenzie. “When you’re that rich you can afford to have talented tax advisers.”
106 Swiss banks have signed agreements to provide information about U.S. account holders.
“The current Offshore Shore Disclosure Program (OVDP) began in January 2012 continues until it is terminated by the Service. Taxpayers whose names have yet to be disclosed to the IRS may apply for the program. Those accepted to OVDP must amend their last eight years of income tax returns and pay additional taxes, interest and penalties They must also file eight years of special reports for foreign accounts, known as FBARs. The IRS will then assert a penalty of up to 27 1/2% of the highest balance in the offshore accounts. Taxpayers who are dissatisfied with the penalty regime may opt out and might receive lower penalties but the IRS reserves the right to assert even higher penalties if it finds the offshore depositor’s pleas for mercy unpersuasive.”