I have a diary up on the new Obama ad about Romney's taxes and his approval of the Son of Boss tax avoidance scheme while head of the audit committe at Marriot, a scheme later found to be illegal by the IRS and Courts. Obama Ad: "Isn't It Time For Romney To Come Clean" On His Taxes?
Here's a little on Romney and Son of BOSS from wikepedia:
The federal appeals court invalidated the maneuver by Marriott in a 2009 ruling, siding with the U.S. Department of Justice, which called Marriott’s transaction and attempted tax benefits “fictitious,” “artificial,” “spectral,” an “illusion” and a “scheme.” Marriott had argued the plan predated government efforts to close such shelters.[4]
Mitt Romney who joined the company’s board in 1993, headed the audit committee for Marriott when it began to use the "Son of Boss" tax shelter until 1998. As a Marriott director, his responsibilities included oversight over the tax planning conducted by management.[5]
Please google Son of BOSS and Romney early and often. :-)
I did and I found an interesting bit of speculation from a tax expert at Forbes.
Was Romney In Son of Boss Deals ?
We don’t know. It is possible that even if we get to look at his returns, we won’t be able to tell, since they were designed to be opaque. We do know, however, that he was or at least should have been quite familiar with them. We know this because he was on the audit committee of Marriott, when Marriott did Son of Boss deals. Given how pervasive the deals were and the high reputation of the firms involved in them, I could see Mr. Romney thinking it would be irresponsible to not do a Son of Boss deal – “I pay all the taxes owed and not a penny more.”
Romney Returns - Could Son Of Boss Deals Be Worrying Him?
There's more after the fold.
Last week Reid was clearly baiting Romney with the zero taxes stuff. Now an ad talking about Son of BOSS and asking Romney to "come clean."
So take a walk down speculation highway with me. Here's an interesting theory based on some facts and guesses. That's all it is.
Premise 1: By some means, OFA knows what Romney is trying to hide in his taxes.
2. Romney really did pay zero some years and very little in others.
3. One way he reduced taxes was Son of BOSS (at least before 99 when the appellate court slammed Marriot.)
4. OFA knows this.
OFA is sending messages to Romney, taunting him, and forcing to committ errors.
Reid last week about zero taxes. This week, Son of BOSS.
Maybe?
The beauty of this all is that I can be completely wrong, but Romney's refusal to release his tax returns makes all sort of speculation possible.
So do you think part of what Romney is hiding is Son of Boss in his own returns?
Let's go back to Peter J. Reilly of Forbes:
People who used Son of Boss to reduce their tax liability were relying on some very prestigious firms. They did not think they were doing anything wrong. Everybody now knows it was wrong though. Sometimes the IRS gets six years to catch up with you instead of three. There was a big fight about how that rule applied to Son of Boss deals. The Supreme Court ended up saying it was only three years. There was dancing in the streets.
Romney Returns - Could Son Of Boss Deals Be Worrying Him?
Could Romney owe millions in taxes that he avoided but does not have to pay because of the statute of limitations expiring?
Inquiring minds want to know.
Midnight speculations for night owls.