On July 24, 2012 I submitted Forms 211 and 3949A to the IRS asking them to review the Romney tax problem. My understanding is that any review is at the discretion of the IRS. Two big questions are:
- Has the six-year statute of limitations run out? That would mean that 2005 and earlier cannot be reviewed unless the earlier improper claim as an active investor affects 2006 or later.
- Was there intent to evade tax or was it just an innocent mistake? Romney’s Public Financial Disclosure Report indicates he always knew he was a passive investor at Bain after February 11, 1999. A claim of active investor status on tax returns for 1999, 2000, or 2001 could be judged by IRS to have been fraudulent. If so, those tax returns would not be protected by the statute of limitations.
- Innocent mistakes are hard to make when you have so many lawyers.
Anyone with information on the Romney’s active/passive investor claims might also comment and submit their own Forms 211 and 3949A. There might be a reward. My submission is under About.