As someone who works at a non-profit that partners with various for-profits, I'm skeptical that the IRS would allow such sort of large-scale tax fraud to happen.
Right, I'm not saying those things don't happen, but the example you gave is exactly what the IRS should be looking for -- transactions between insiders and related parties. Of course, they've been trying to gut the IRS...
Sure, but what's being implied in the article, and the years-long IRS investigation/battle, is that the constant declared losses were indeed tax fraud.
Did you read the examples? In many of these cases, tax fraud isn't the primary factor:
"On September 18, 2012, in Cincinnati, Ohio, Larry Lough, of West Chester, Ohio, was sentenced to 24 months in prison, three years of supervised release, and ordered to pay $757,751 in restitution to defrauded investors and $145,175 in restitution to the IRS. Lough pleaded guilty on February 15, 2012, to conspiracy to commit mail and wire fraud, conspiracy to commit employment tax fraud and income tax evasion."
“Three businessmen told the Senate Finance Committee today of Internal Revenue Service agents who, with guns drawn, broke down doors, terrified workers and forced teen-age girls to change clothes in front of male agents in raids at the men's homes and businesses that they said were unnecessary.
These aggressive paramilitary tactics were denounced as intolerable and ‘’fascist’’ by Democratic and Republican senators as the panel heard testimony for a second day in its second round of hearings on I.R.S. abuses of taxpayers.”
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