Major trump donor Robert Mercer owes the IRS $7 billion in back taxes. https://t.co/dANmMeMZeW
— Anthony De Rosa 🗽 (@Anthony) November 2, 2017
Does this have anything to do with Mercer stepping down from Renaissance? https://t.co/DUgX89t1Ct
— Emily Flitter (@FlitterOnFraud) November 2, 2017
We were all, understandably, agog yesterday over Robert Mercer’s sudden decision to step down from his hedge fund (and also cut Breitbart loose). But I was working my ADD-addled way through the tweetstreams late at night, and read for the first time about Mr. Mercer’s disagreements with the IRS:
… Suddenly, the government’s seven-year pursuit of Renaissance Technologies LLC is blanketed in political intrigue, now that the hedge fund’s reclusive, anti-establishment co-chief executive, Robert Mercer, has morphed into a political force who might be owed a big presidential favor.
With Trump in the Oval Office, Mercer and his daughter Rebekah, who has become his public voice, seem armed with political firepower every which way you look – and that’s even though presidential adviser Stephen Bannon, their former senior executive and political strategist, appears to have recently lost influence.
Since the IRS found in 2010 that a complicated banking method used by Renaissance and about 10 other hedge funds was a tax-avoidance scheme, Mercer has gotten increasingly active in politics. According to data from the Center for Responsive Politics, he doled out more than $22 million to outside conservative groups seeking to influence last year’s elections, while advocating the abolition of the IRS and much of the federal government.
The Mercer Family Foundation, run by Rebekah Mercer, also has donated millions of dollars to conservative nonprofit groups that have called for the firing of IRS Commissioner John Koskinen, an Obama administration holdover whose five-year term expires in November…
IRS leader Koskinen has said publicly that he intends to finish his term. On his watch, the agency hasn’t been cowed by the Mercers.
The IRS recently released a little-noticed advisory stating that its top targets in future business audits will include so-called “basket options,” the instruments that Renaissance and some other hedge funds have used to convert short-term capital gains to long-term profits that have lower tax rates…
More detail from an Oct. 27 Bloomberg article:
… Members of the Internal Revenue Service’s Office of Appeals are scheduled to meet with lawyers for Renaissance in New York on Nov. 7, according to a person with knowledge of the matter. The meeting kicks off a review by an independent branch of the tax agency and suggests a resolution may be years away.
Although the dollar amount at issue has never been made public, Senate investigators estimated that Renaissance employees may have pocketed about $6.8 billion through what a bipartisan panel in 2014 called an “abusive” tax shelter. Renaissance executives maintain the transactions at issue were within the law and weren’t driven by tax savings…
Trump named David Kautter to become acting IRS commissioner after the term of John Koskinen, an appointee of Barack Obama, expires Nov. 12. Kautter doesn’t require Senate confirmation. Rootstrikers, a group critical of the Trump administration, began a petition drive Friday opposing the Kautter appointment, calling it an “end run around the Senate” that “could lead to a massive payback for billionaire Trump donor Robert Mercer.”…