On Wed, 15 May 1996, E. ALLEN SMITH wrote:

From: IN%"unicorn@schloss.li" "Black Unicorn" 15-MAY-1996 18:59:01.44

...

For these a company running at a constant net operating loss could be formed to purchase cars for resale (funny how no one ever buys them) and manage property (which no one seems to ever lease).

But won't such a company run into tax problems? In other words, the IRS is going to look with some suspicion on a company that keeps showing no profits (and thus no taxes) but keeps going anyway. They're going to think that the owners are making a profit anyway but concealing it - which is the case. I'm not sure how to handle this one, other than not owning major property (rental et al). -Allen

So what, pray tell, is the IRS going to do? Impose a "we see no income" fine and seize property? They can audit, but audits are winable too. An offshore company simply keeps dropping cash into the local business. That's not a crime. The local business is losing money like crazy, but who is to say they are defrauding per se? Bad business judgment is hardly tax fraud, and how do you know (with a properly blinded ownership) that the assets that are pouring into this company with all these expenses are taxible in the U.S. in the first place? --- My preferred and soon to be permanent e-mail address:unicorn@schloss.li "In fact, had Bancroft not existed, potestas scientiae in usu est Franklin might have had to invent him." in nihilum nil posse reverti 00B9289C28DC0E55 E16D5378B81E1C96 - Finger for Current Key Information Opp. Counsel: For all your expert testimony needs: jimbell@pacifier.com