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It isn't bad enough that former governor Romney, and his lap-dog, Congressman Ryan have decided to release only their 2010 Federal income tax returns for public consumption, rather than the past five years, as requested by their opponents, or the past ten years, which is more in keeping with past candidates, including George Romney, a short review of the Romney's "filed 1040 for 2010" shows that it must be a fake tax return. I'll explain.

First, the tax return shows that it was signed and dated by a member of Price Waterhouse Coopers, a highly respected public accounting firm that does not forget to include what was missing on the tax return.

Second, the Romneys show approx $ 3,009,000 in total tax due.

Third, approx $ 1,369,000 was withheld, or estimated during the tax year.

Fourth, $ 3,250,000 was paid on extension at 04/15/2011.

Therefore, the Romney's were underwithheld by $ 1,640,000 by 01/15/2011.

Although they ultimately paid $ 4,619,000, an overpayment of  $ 1,610,000,
$ 1,640,000 was paid untimely. This underpayment would be subject to
penalty which is required to be calculated on Form 2210.

The Romney's were not kind enough to include Form 2210, or their 2009 filed tax return which are required when there is an underpayment.(so we have to presume they didn't file Form 2210, and we will have to make assumptions).

Either way, since the tax return was filed after the due date, (10/15/2011) it would be subject to underpayment penalties of at least $ 30,000, upward to $ 90,000. The tax preparer would know this. And the CPA's at PWC don't miss this one.  

I can only presume that this is an incomplete tax return, most likely a fake tax return. Since the Romney's have chosen not to release their 2009 1040, I have to believe their released 2010 Form 1040 is a FAKE tax return!

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Comment Preferences

  •  I knew it! I knew it! I knew it! (2+ / 0-)
    Recommended by:
    phonegery, martini
  •  Sounds reasonable to me. If Price Waterhouse (2+ / 0-)
    Recommended by:
    buffie, martini

    didn't know about or were sloppy with deadlines and penalties I'd be surprised $money would use them.

    "I believe more women should carry guns. I believe armed women will make the world a better place. Women need to come to think of themselves not as victims but as dangerous." Anna Pigeon

    by glorificus on Tue Sep 04, 2012 at 08:26:34 AM PDT

  •  not necessarily (3+ / 0-)
    Recommended by:
    phonegery, johnny wurster, VClib

    If Romney paid what he owed in the previous year as withholding there is no penalty.

    this is a reasonable rule, since for many people with investment income, they do not know until the end of the tax year ( or later) how much they made.  So there is a safe harbor of paying the entire amount owed the preious year.

    Since most  people think Romney opaid no taxes in 2009, he clearly met that threshold.

    As my father used to say,"We have the best government money can buy."

    by BPARTR on Tue Sep 04, 2012 at 08:36:26 AM PDT

    •  If Romney paid what he owed... (1+ / 0-)
      Recommended by:

      That would be true only under certain circumstances, and the Romney's don't fit either.

      1. We would have to see his 2009 1040.

      2. They were still required to file Form 2210, which they didn't.

      3. The return was not filed until 10/15/2011. Sorry, subject to penalties, no matter how you swing it!

      •  He had paid at least 100% of the tax bill (5+ / 0-)
        Recommended by:
        marleycat, Actbriniel, ColoTim, VClib, BPARTR

        by 4/15, so no there's no penalty.

        •  No Penalty? (0+ / 0-)

          The penalty applies because he did not have the required amounts on deposit by 04/15/2010, 06/15/2010,  09/15/2010, and 01/15/2011. He can pay as much as he wants by April 15, 2011, but if he is underwithheld by the due dates as shown on the Form 2210, he still owes the penalty.

          That's the point. I don't assume that the Romney's paid anything in Federal income tax in 2009. He didn't produce the tax returns, no tax paid.

          Under that scenario, he is subject to penalties.

          •  He had to have paid 1.4MM or whatever, (2+ / 0-)
            Recommended by:
            VClib, BPARTR

            and his refund was $3MM.  He was overpaid, ergo no penalty.

            •  by refund, I mean 2009 refund applied to 2010. (1+ / 0-)
              Recommended by:

              That's deemed to have been paid on 4/15/10.  Since he covered his entire estimated tax due on 4/15/10, there's no penalty for underpayment.

              •  How do you know that? (0+ / 0-)

                I have no documentation that he overpaid in 2009. I don't know what he paid in 2009, how do you? Because he said so? What did he say? I heard him say-ambiguously, that he never paid less than 13% in taxes.

                What he never bothered to explain was-what taxes?
                Federal income tax?
                FICA tax?
                State tax?
                Local income tax?
                Real Estate tax?
                Gross Receipts tax?
                Corporate income tax?
                Excise tax?

                If, added up, the average american pays over 50% in the above taxes that would apply to them. That Mr. Romney  could pay just 13% is despicable!

                The problem is...we just don't know! What is worse, he doesn't want us to know!! And he calls this transparency?

                Anyone who doesn't want his finances open up to the public is not qualified to run for President of the United States!

      •  PA Voter - johnny w is a tax lawyer (0+ / 0-)

        Who has written extensively here at DKOS regarding the Romney tax returns.

        "let's talk about that"

        by VClib on Wed Sep 05, 2012 at 04:56:46 AM PDT

        [ Parent ]

  •  Another contradiction. (3+ / 0-)
    Recommended by:
    martini, Tracker, workingclasszero

    I haven't dug into it at all, and probably don't have the chops to fully understand at this point, but....

    It's well documented that Rmoney self financed a large part of his 2008 run for the Republican nomination.

    It's also well documented that Rmoney claims all his money is in a 'blind trust' since well before 2008.

    So the question is, how did the trustee of the 'blind trust' decide it was in Mitt's financial interest to give boatloads of the trusts assets to Mitt's campaign?  No trustee would make that decision.  It would be contrary to his fiduciary duty to protect the assets of the trust.

    This tells me that his trusts aren't blind at all.  That he's directed them, and every time he uses the blindness of his trust as a defense, it's just a flat out lie.

  •  Underpayment penalty on Form 2210 (4+ / 0-)

    depends on your prior year Tax.

    In general, you may owe the penalty for 2010 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of:

    1.  90% of your 2010 tax, or
    2.  100% of your 2009 (prior year) tax.

    Special rules for higher income taxpayers:

    If your adjusted gross income for 2009 was more that $150,000, substitute 110% for the 100% in (2) above.

    If Romneys prior year (2009) tax was zero, he does not owe the penalty in 2010.

    If his 2009 tax was 1,250,000 and he paid in 1,375,000 throughout the year, he may not owe the penalty.

    Also, Form 2210 indicates that the form should not be filed even if the penalty is owed.

    Notice: This Comment © 2012 ROGNM

    by ROGNM on Tue Sep 04, 2012 at 08:47:20 AM PDT

  •  There is an interesting point here, but you've (7+ / 0-)

    just missed it.  As I've noted before, the reason there's no underpayment penalty - the only way it's possible there was no underpayment penalty - is that their total tax liability for 2009 was no more than $1.24MM.  ie, if you've paid in at least 110% of the prior year's tax bill, you'll be in the safe harbor and won't have an underpayment penalty.

    IOW, we know that his 2009 tax bill was about one-third of his 2010 tax bill.

  •  I demand (0+ / 0-)

    that Mitt Romney release the birth certificate for his tax returns...

    If you think it's a good idea to not have to call your insurance company immediately after being pulled from a flaming wreck to make sure the ER visit is covered-you might be FOR the PPACA

    by workingclasszero on Tue Sep 04, 2012 at 11:07:33 AM PDT

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