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View Diary: STUNNING: Colbert's Revelation (301 comments)

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  •  A Few Paragraphs Transcript for Those Who Can't (20+ / 0-)

    stream during the work day?

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Tue Nov 13, 2012 at 07:04:57 AM PST

    •  In consultation with his lawyer, Stephen (7+ / 0-)

      learns that he can take all the money ($800,000) from his SuperPAC, give it to his 501C4 PAC along with instructions to pass it to a new, anonymous PAC that would be created.  The 501C4 PAC would never actually have the money, because it is directed to pass along all the money, so Stephen doesn't have to declare that as income to his 501C4.  The new anonymous PAC then doesn't have to declare what it does with the money, even to the IRS, because it never had the money either.  So the money can just disappear as it is used for whatever purpose the new anonymous PAC decides.

      That's what I got from it, but IANAL, a grifter or a thief so I'm sure there are some details I missed as my eyes and ears glazed over.

      Basically Stephen gets to spend the money however he wants to through using his anonymous new PAC.  No taxes, no reporting.

      •  Listen closely to the fine print (0+ / 0-)

        All the discussion related to reports to the IRS from a 501(c) 4 organization.  It did not relate to an individual Form 1040 return.

        If the money goes to an individual, that individual is still responsible to report it to the IRS.

        Depending on the amount of money involved, the IRS may or may not find it worthwhile to trace the money to an individual, but failure to report this income would still be tax evasion.

    •  Money gathered by the super pac is transferred to (5+ / 0-)

      Stephan's 501c4 account which is then transferred to a secret pac account.  Once the money passes through the 501c4 account to the secret pac, Stephan can do whatever he wants with all the money without having to report one dime of it to the IRS.  Stephan stands to pocket 800 thousand dollars free and clear, tax free, to spend at his whim.
      This loophole applies to all the super pac money gathered during the campaigns.

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