Billionaire hedge fund manager Leon G. Cooperman thought he was making a $43 million donation that would save him substantially on his 2005 and 2006 tax returns.
The IRS, however, thought differently.
The tax agency says instead of a deduction, Cooperman now owes Uncle Sam $14 million in back taxes and another $5 million in penalties.
Adding insult to injury, Cooperman says he was just following the advice of his paid tax professionals.
Looks like Cooperman needs to find some new tax advisers.
And just so you don't end up in a similar, although I hope much less costly, tax mess, be sure to check out your tax pro carefully before you hire him or her.
- More taxpayers turning to tax pros
- Picking a tax pro
- Hire a tax pro
- 'I find the tax code complex'
- Economy's effect on tax filing methods
- Bad tax clients, revisited
- Time for tax therapy
- Letterman's Top 10 tax list
- Tax preparer testing (and more) on the way
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