Daniel David Rostenkowski, 1928-2010
Tax holidays this weekend (and beyond) in Connecticut, Florida & Massachusetts

'Bad tax advice' negates $43 million charitable tax deduction

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.

You can read more about the Cooperman deduction mess in Forbes and my Bankrate Taxes Blog post Bad tax advice costs $19 million.

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.

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