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(135,060 posts)
Thu Jul 19, 2012, 01:08 PM Jul 2012

What Could Mitt Romney's Pre-2010 Filings Tell Us?

Hopefully, the release of Romney’s tax and reporting information for several years prior to 2010 would confirm what we already know. That is, Romney is a rich guy who is taxed at a low rate because of the preferential income (tax exempt income, capital gains, qualified dividends, etc.) he receives. Further, without an audit of his specific activity, it appears Romney is taking advantage of planning allowed under federal tax law. By allowed I mean loopholes and even gray areas of the law where his tax advisors determined that no special disclosure to the IRS was required. Just like his 2010 and 2011 returns, this information could tell us of foreign interests that could be in conflict with his position as president. Although Romney may not think this is so, it is for the voters (not Romney) to decide whether a conflict exists.

It is possible more is going on in years prior to 2010. I would want to know whether and when he fully disclosed foreign account information for the tax years since such filings were required. I raised this issue in January when I thought more filing information was forthcoming. Please see my article, Does the IRS Have its Mitts on Romney’s Foreign Accounts? Federal banking law requires US citizens and residents to annually disclose information regarding foreign bank and financial accounts they own, or have signature or other authority over. This filing is done each year on form TD F 90-22.1, commonly referred to as the FBAR. Failure to disclose foreign account information can result in severe civil penalties, as well as criminal penalties including prison. Is it possible Romney was not in compliance during a period when the federal government was not actively pursuing foreign accounts? Did Romney “quietly” catch up with the FBAR filings, or did he participate in an IRS’s voluntary program, so as to avoid the government discovering his noncompliance first? Is it possible that Romney did not report all of his foreign source income for years when an FBAR was not filed or complete? As I said in my prior article, substantial noncompliance could end his run for president. Romney should be able to resolve these questions by fully disclosing his FBAR filings along with his tax returns for prior years.

Prior year returns may also reveal that what was thought to be a gray area in the law was actually black, such as certain basis generating transactions used to shelter capital gains. This would mean Romney may have substantially underpaid taxes in prior years. Again, these issues could be resolved if Romney discloses information for prior years.

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What Could Mitt Romney's Pre-2010 Filings Tell Us? (Original Post) maddezmom Jul 2012 OP
That..... HE LIED!!!! Historic NY Jul 2012 #1
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