How Much is Buffett’s Berkshire Hathaway Back-Tax Bill Exactly? About $1 Billion
- Posted on August 30, 2011 at 5:57pm by
Tiffany Gabbay
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On Monday, The Blaze reported that Warren Buffett’s company, Berkshire Hathaway, owes back taxes dating to 2002. The news is significant because in a recent op-ed column for the New York Times, Buffett, one of President Obama’s staunchest supporters, stated that, to now, the “super wealthy” have been coddled and deserve to be taxed at an even higher rate than they currently are.
When Buffett made his revelation earlier in the month, most assumed his company was up-t0-date on its taxes. That assumption has turned out to be incorrect, however — and to a substantial degree perhaps.
According to Berkshire’s 2010 annual report, the company has been in a near decade-long struggle with the IRS over its own taxes. Using public documents, a certified public accountant detailed Berkshire’s tax problems to Americans for Limited Government researcher Richard McCarty, revealing the damage could be close to $1 billion. Netright Daily adds:
According to page 56 of the company report, “At December 31, 2010… net unrecognized tax benefits were $1,005 million”, or about $1 billion. McCarty explained, “Unrecognized tax benefits represent the company’s potential future obligation to the IRS and other taxing authorities. They have to be recorded in the company’s financial statements.”
He added, “The notation means that Berkshire Hathaway’s own auditors have probably said that $1 billion is more likely than not owed to the government.”
$1 billion is not an insignificant chunk of change, even for Buffett, representing about 0.2 percent of the company’s $372 billion in total assets.
The annual report goes on to state: “We anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (‘IRS’) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months. The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years.”
Meanwhile, McCarty believes Berkshire‘s current issues may be consistent with the company’s long-time history regarding taxes, noting, “this is not the first time that Berkshire Hathaway has tangled with the IRS.”
“They fought a 14-year battle over the dividends received deduction. That case was just resolved in 2005,” McCarty said.
Before knowing just how much Buffett’s company owed, the press were quick to blast the mogul for his apparent hypocrisy.
On Monday the New York Post reported:
Obvious question: If Buffett really thinks he and his “mega-rich friends” should pay higher taxes, why doesn’t his firm fork over what it already owes under current rates?
Likely answer: He cares more about shilling for President Obama — who’s practically made socking “millionaires and billionaires” his re-election theme song — than about kicking in more himself.
While the site Mogulite jumped into the fray:
Ironic, isn’t it? When Warren Buffett penned that op-ed demanding he be taxed more, we assumed that meant he had actually paid his taxes. Not quite the case. Buffett’s famed company, Berkshire Hathaway, owes taxes that are nearly a decade old.
[...] They promise they’ll work it out with the IRS within the next year. Can’t Buffett just take a little out of his piggybank and pay up? For a man who so actively preaches honesty and integrity, we’re a little baffled as to why Berkshire won’t just fork over what it owes.
If the press came down hard on Buffett before — for merely learning his company owed back taxes at all — one can only imagine how the tycoon might be disparaged now that we’ve learned just how much his company could owe the IRS.
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Comments (130)
Miami
Posted on August 30, 2011 at 6:41pmIt‘s no wonder he feels he doesn’t pay enough taxes, he doesn’t pay his taxes.
Maybe just maybe if he did he would feel different? Lets say we penalize him a billion on top of the billion he owes, do you all think he would believe that’s enough? How about we pill on some late fees to boot…
Report Post »INOGAWD
Posted on August 30, 2011 at 7:15pmWarren is a smart guy,Why don’t we drill for our own OIL.? We are paying twice as
Report Post »much for Gas since Obama took office..and paying 30 to40%
more for FOOD.. Obama’s CHANGE really SUCKS…..
Don‘t think he’ll be Happy till we are all on Food Stamps…
fastfacts
Posted on August 30, 2011 at 7:42pmIF WARREN BUFFETT WAS SO SMART HE…
Wouldn’t have made a big stink of his whole tax situation. He actually told the world that his secretary paid more than him, now everyone is investigating him and he is caught: http://www.americanparchment.com/video/2011/aug/buffett_tax_rate.html
Funny how he is helping Obama even though Obama attacked him and his friends and Buffett had to chastise him: http://www.americanparchment.com/video/2011/july/buffett_attacks_obama.html
Report Post »Kara2012
Posted on August 30, 2011 at 8:42pmThat’s why Democrats are always for higher income taxes. They know they won’t be the ones paying their fair share, so why not. This hypocrite needs to be exposed, along with all of the other Democrat hypocrites in the Obama administration.
Report Post »Hobbs57
Posted on August 30, 2011 at 9:21pm@ INo- Heck, they only give $200 a month for food on food stamps. That isn’t even close to enough now that Obama got the food all jacked up in price.
Report Post »GO
Posted on August 31, 2011 at 1:57amNo liberal Democraps pay their taxes. Just look at the White House
Report Post »The10thAmendment
Posted on August 31, 2011 at 3:44amHell, if Gates, Buffet, Soros, GE, and GM would actually pay their taxes the US economy would be in good shape.
Report Post »JustJP
Posted on August 31, 2011 at 5:34amI like what Mark Levin suggested…get Buffett, Gates, etc. to voluntarily pay HALF of their net worth. They would still be stinking rich.
Report Post »HKS
Posted on August 31, 2011 at 7:11amwithin the top 50 congressman, Democrats have double the wealth of Republicans, I wonder how many of them pay their taxes? If you want to know what a Liberal is doing, just listen to what they are bitching about, they think you’re to dumb to figure it out.
Report Post »mikem1969
Posted on August 31, 2011 at 8:54amjust goes to show you, when you support the lib progressive agenda, you don’t have to pay your taxes, so of course why would you mind if they went up, 2 * 0 is still 0.
Report Post »JRook
Posted on August 31, 2011 at 11:25amThis report like many others is so misleading as to be worthless. The actual facts are the BH is in discussion with the IRS to resolve tax liability associated with interpretation of tax laws. Why should BH or Buffet interpret tax law differently than Haliburton, Disney or FOX. The real story is in the need to simplify the tax code and eliminate the tax avoidance and tax loopholes for wealthy corporations and wealthy individuals.
Report Post »Shackleford
Posted on April 15, 2012 at 12:54pmAnyone else think Buffet is selling his soul to the devil in exchange for leniency against the IRS?
Report Post »retiredlogger
Posted on August 30, 2011 at 6:41pmNow that’s Rich……….lol
Report Post »Miami
Posted on August 30, 2011 at 6:49pmAnd he’s a hypocrite to boot
Report Post »rockstone
Posted on August 30, 2011 at 8:19pmWarren is a student of PT Barnum. I just love how people fall for the ‘sweet old man from Omaha’ bit.
Report Post »TeaPartyPatriot
Posted on August 30, 2011 at 6:39pmD-crats love to tax you to death, then tax your death, all while wasting your tax dollars on crony capitalist bonuses, bailouts, abortions, pork, socialist welfare and THEMSELVES. But, like lunatic-left liberal d-cRAT TAX CHEATS geithner, rangel, olbermann, mccaskill, holder, daschle, killifer, buffett, solis, kirk, sebelius and millions more, they hate to pay taxes, and they’ll cheat the government out of every penny they can.
Report Post »Miami
Posted on August 30, 2011 at 6:46pmSo very true, why is it so many Dems can’t pay their taxes or refuse to pay their taxes…?
Report Post »let us prey
Posted on August 30, 2011 at 6:53pmObumbler gave that bloated creep a medal of freedom last year.
Report Post »INOGAWD
Posted on August 30, 2011 at 7:23pmYea, That’s why they are so Buddy, Buddy..AWWW
Report Post »BO and MO are so nice to Me…
INOGAWD
Posted on August 30, 2011 at 7:29pm“There will be NO special interest on My watch”, Obama..
Report Post »Lie # 103
BONETRAUMA
Posted on August 30, 2011 at 6:39pmDamn tax cheat. Just another of the big O’s butt buddies.
TEA 2012
Report Post »Miami
Posted on August 30, 2011 at 6:52pmYep and Obama will probably get him off like he did with GE
Report Post »axel@25
Posted on August 30, 2011 at 6:35pmBuffet is fully aware that for the circles he runs in, income taxes could easily be 1000% and they still wouldn’t have any taxes…because they don’t have paychecks (maybe $1 a year) the rest of their spending money is from stock sales and is only subject to capital gains of 25%. In other words…they have no income only capital gains….and most of that is derived from investments that are kept out of the US in tax havens.
Just wait…for his “favor” to Obama he’ll receive at least the amount of his taxes owed in either future stimulus money, Bank bailout money, or delayed IRS and JD actions.
Buffy and Obama are both criminals that know they will never be held to account.
Report Post »PopModal
Posted on August 30, 2011 at 6:33pmI agree with Ann Coulter – I think there should be a Open-Your-Trap-Tax. Watch video of Ann explaining this new tax all Republicans can be proud of.
Report Post »http://www.popmodal.com/video/8483
George_Was_Right
Posted on August 30, 2011 at 6:32pmHe‘s feels he’s not paying enough taxes, because he’s not paying enough taxes….
Report Post »Exrepublisheep
Posted on August 30, 2011 at 6:40pmLol, correct!
Report Post »Living In NYC
Posted on August 30, 2011 at 6:56pmYep…guess if you don’t pay …. you need to start paying..guess that why Warren thinks he needs to pay more…cause he hasn’t paid the full boat! Pony up Warren!
Typical Obama friend…tax cheats, socialist and waterboy of Emperor’s message!
Report Post »jpsays
Posted on August 30, 2011 at 7:57pmLiberal brains can’t do basic math or apparently pay taxes like everyone else.
Report Post »geonj
Posted on August 30, 2011 at 6:30pmsomeone needs to go to jail as a result of the never ending rediculousness we face everyday from washington and wall street. these two entities are hot for each other and won’t give up their perverse, almost sexual, relationship.
Report Post »RightUnite
Posted on August 30, 2011 at 6:27pmYa know, if that old fool actually paid his back taxes, maybe the rest of us middle classers wouldn’t have to keep paying more taxes every friggin year! How about that, huh?
Report Post »Jenny Lind
Posted on August 30, 2011 at 6:26pmTotal fraud. I would love to be a fly on the wall when people like him try to explain their wealth and what they did with it to God-eye of the needle comes to mind. There are a few who really will get “atta boys” Huntsman Sr., and the Gates’ come to mind and I am sure there are more, but people like Buffet will deserve exactly what they have earned. It isn’t money is the root of all evil, but the love of money-and if you can’t even let go of what you owe IRS, how can you let go what you should be doing good with? I wonder if he ever thinks about what’s coming next when he takes his last breath here? I suspect he has more than taxes to worry about-and he should worry about that before he worries what anyone else is doing with their money. So tired of evil old men who think they own the world, they have a suprise coming with they meet the REAL landlord.
Report Post »Exrepublisheep
Posted on August 30, 2011 at 6:50pmAgreed.
Report Post »inferno
Posted on August 30, 2011 at 6:18pmIt’s easy to see why most supporters of Obama are tax frauds. At the same time they believe everyone else should pay higher taxes, while they ignore theirs. Does anyone wonder why the power structure stayed in place in the former Soviet Union for so long ? Simple. There were people like Warren Buffet who benefited from the power structure. Today this country is no different.
Report Post »CatB
Posted on August 30, 2011 at 6:25pmAnother Obama HYPOCRITE … surprised? NOT!
TEA!
Report Post »Hisemiester
Posted on August 30, 2011 at 6:15pmWouldn’t you like to grab this guy by the ears and rattle the pieces of his brain. Look into his eyes and see if there is anyone in there with brains. The IRS should be in this guys pocket big time. One Billion, with interest and fines. Hey you rich jack wagon. Give it all up.
Report Post »S. Dakers
Posted on August 30, 2011 at 6:15pmBuffet’s claim that “the wealthy” need to pay higher taxes while owing a billion in back taxes himself is a little like a porn star bemoaning America’s moral decline: neither should garner anyone’s attention.
I’m assuming that his company is accruing the standard 25% interest on all uncollected taxes, and that he will be the first to say that the government should collect those fees as well.
Report Post »teddie888
Posted on August 31, 2011 at 4:33amBuffy the Cheat is doing what Buffy does, cheat. He cheated on his wife for yrs and she moved out but no divorcewhile he lived with the girlfriend. Then when she died he he married her
Report Post »Lost Rebel
Posted on August 30, 2011 at 6:14pmAmazing how associates of Obama always get a pass. Many of them get promoted into his administration. You and I would not be in jail, we would be under it!!!
Report Post »majorsco
Posted on August 30, 2011 at 6:13pmI don‘t see how Buffett can ask people to pay more in taxes when he’s skating on $1billion that he owes. Is the Obama administration forgiving this tax cheat on his tax problem in exchange for his unwavering support? If the Justice Dept wasn’t in the tank already, I think we’d have an answer soon.
Report Post »biohazard23
Posted on August 30, 2011 at 6:13pmTaxes for thee but not for me…..
Report Post »teddie888
Posted on August 31, 2011 at 4:34amWhat Buffy does is instead of giving the gov the $ he keeps it and uses it to make more for himself
Report Post »Ookspay
Posted on August 30, 2011 at 6:13pmBy definition all liberals are hypocrites. Advocating future tax increases, while hiring legions of attorneys to avoid past responsibilities. Priceless.
Report Post »BoehnerMustGo
Posted on August 30, 2011 at 6:10pmI also want to know why Obama hasnt told OPRAH that she’s earned ENOUGH money and she needs to stop. And SOROS too….why isnt Obama telling this multi-BILLIONAIRES that the way he says it about everyone else. I think we should take 75% of Oprah, Soro’s, and Buffetts money and SPREAD THEIR WEALTH AROUND since they support the Obama agenda so much.
Report Post »BoehnerMustGo
Posted on August 30, 2011 at 6:06pmBuffett’s a HYPOCRITE…. just like Timmy Geitner and all the other Tax CHEATS in the BO Administration. BUFFET- get your nose out of Obama’s bum and stop carrying the Obama water cause you think its gonna get you out of your Billion $$ bill to the IRS.
Report Post »AJAYW
Posted on August 30, 2011 at 6:05pmKING -Obama will make a Ex Order forgiving all thats owed by him
Report Post »jblovesAmerica
Posted on August 30, 2011 at 6:05pmwhat a liar and now a thief.
Report Post »Warren Buffett is a fraud
INOGAWD
Posted on August 30, 2011 at 7:35pmGonna have to give that Medal back, Uh, Huh !!
Report Post »teddie888
Posted on August 31, 2011 at 4:22amDems never pay their taxes. That‘s why it’s easy for Buffy to tell people meaning all the Repubs will pay their taxes for him
Report Post »ALibertarianCitizen
Posted on August 30, 2011 at 6:05pmWe should charge interest on taxes that aren’t paid rather than immediately jail someone. Let’s say 6% interest. He’d owe almost 1.5 Billion instead of 1 Billion. Would be a better deterrent than threats of jail.
Report Post »Psychosis
Posted on August 30, 2011 at 6:15pmactually in his case 250% would be a better reminder for him next time
Report Post »MODEL82A1
Posted on August 30, 2011 at 6:04pmI know several multi-multi millionaires (all business owners) that have zero common sense. Perhaps this phenomenon extends to multi-multi billionaires.
Report Post »IMAWAKENOW
Posted on August 30, 2011 at 7:59pmYou KNOW them or you know OF them? I would bet 99% of the multi million company owners that didn’t just inherit it are smarter than the average man on the street. I get very tired of the jealous putting down someone that has made it in this country.
Report Post »Libby Tarian
Posted on August 30, 2011 at 6:03pmBuffy, put your money where your mouth is…
Report Post »barber2
Posted on August 30, 2011 at 6:02pmMr. Big Cheese Buffett: Instead of “volunteering” to pay MORE in taxes, how about paying the ones you already owe? Amazing . Is Holder/FBI “investigating” this Obama supporting clown? Let me guess…
Report Post »Utahcatholic
Posted on August 30, 2011 at 10:10pmI am done supporting any company this old fool owns or controls thru Berkshire Hathaway, they include:
.Benjamin Moore Paints
.Dairy Queen
.Pampered Chef
.Fruit of the Loom
.GEICO Insurance
.RC Willey Home Furnishings
.Johns Manville Building Products
Those are only a few of them, if you want to know more just google “buffet companies” and follow the links.
Report Post »I will make sure I never do business with any of those companies again. How about you fellow “Blazers”?