Tag Archives: Tax Audit

Some Tax Facts for Donald Trump from Warren Buffett

OMAHA, Nebraska –(BUSINESS WIRE)–Answering a question last night about his $916 million income tax loss carryforward in 1995, Donald Trump stated that “Warren Buffett took a massive deduction.” Mr. Trump says he knows more about taxes than any other human. He has not seen my income tax returns. But I am happy to give him the facts.

My 2015 return shows adjusted gross income of $11,563,931. My deductions totaled $5,477,694, of which allowable charitable contributions were $3,469,179. All but $36,037 of the remainder was for state income taxes.

The total charitable contributions I made during the year were $2,858,057,970, of which more than $2.85 billion were not taken as deductions and never will be. Tax law properly limits charitable deductions.

My federal income tax for the year was $1,845,557. Returns for previous years are of a similar nature in respect to contributions, deductions and tax rates.

I have paid federal income tax every year since 1944, when I was 13. (Though, being a slow starter, I owed only $7 in tax that year.) I have copies of all 72 of my returns and none uses a carryforward.

Finally, I have been audited by the IRS multiple times and am currently being audited. I have no problem in releasing my tax information while under audit. Neither would Mr. Trump – at least he would have no legal problem.

Contacts

Warren E. Buffett, 402-346-1400
Omaha, Nebraska

Panama Papers Exposes Global Double-Standards

Political Leaders, Criminals, Celebrities are all in there when it comes to evading taxes and hiding wealth illegally in offshore locations. The Panama Papers are a giant leak of more than 11.5 million financial and legal records exposes a system that enables crime, corruption and wrongdoing, hidden by secretive offshore companies. The key entity at the center of this expose is Mossack Fonseca, having 56,200 active offshore companies as of Dec 2015, and having offices worldwide to facilitate the “wealth management”. Files show client roster that includes drug dealers, Mafia members, corrupt politicians and tax evaders. Ordinary citizens are chased by Govt for even $100 of tax outstanding, and here we have millions and billions of dollars sitting at offshore locations completely avoiding any taxes. Hopefully IRS will take a serious look. If Govts worldwide really decide to act on the names that have come out, there are enough details on the transactions in various offshore companies. But will the global elite act against itself? Very unlikely. Read more here…

How to Prepare for a Tax Audit?

There is no reason to fear a Tax Audit if you have been ethical and truthful in your accounting. However, it is best to prepare thoroughly for an audit to make sure that it goes smoothly. Different types of audits require different preparation methods. If a business is brought up for an audit by the IRS, there are several things you can do to prepare your business for audit.

First, review the tax returns that are being audited. Make sure that you are ready to explain how you or your tax preparer came up with the figures in the return when you go into the audit. If you don’t know how your tax preparer came up with the figures, or you have any questions, you should contact your tax preparer prior to the audit for any clarification needed so that you are thoroughly prepared for the audit.

Organizing records used to prepare your tax returns yearly is a great way to maintain proper accounting before an audit. However, if you have not organized your records as you filed year by year, now is the time to organize them for the audit. Make sure that the person performing the audit has access to all records used to prepare the tax returns. Continue reading How to Prepare for a Tax Audit?