Warren Buffett's Company NetJets Sued For Millions In Unpaid Taxes

You'd think Warren Buffett would jump at the chance to pay more taxes. Evidently not.

Buffett, the billionaire investor and CEO of Berkshire Hathaway, has for several months insisted that he and other affluent Americans should have a higher tax burden. Buffett's ideas have been well received among the millionaire community and the general population, and President Obama is likewise a fan. In fact, a proposed tax named in Buffett's honor is projected to raise $31 billion in additional rich-people dollars over the next decade if it passes.

But just because Buffett wants to pay a higher effective tax rate doesn't mean companies related to him are chomping at the bit.

According to The New York Times' DealBook, one of the companies within Buffett's Berkshire fiefdom -- an Ohio-based private aviation firm called NetJets -- is being sued by the federal government for what the government says is a whopping sum of unpaid taxes.

At issue is a maintenance tax for NetJets planes that the company says it shouldn't have to pay -- and the government says it should. (For a more detailed explanation, head over to DealBook.) The lawsuit reportedly seeks $366 million in taxes and penalties.

It's not clear to what extent, if any, Buffett himself is personally involved in the decision-making process at NetJets. The chairman and CEO of the company is Jordan Hansell, who assumed control of NetJets a little under a year ago.

This isn't the first time that people have asked questions about taxes owed by one of Buffett's corporate properties. Last August, shortly after Buffett jump-started a debate over taxing the affluent with a widely read opinion piece in The New York Times, it was reported that Berkshire Hathaway itself still had yet to pay several years' worth of back taxes. The company said in an annual report that it expected to "resolve" the situation within a year.

And as previously reported by The Huffington Post, NetJets itself has already spent $2.5 million on lobbyists in a successful effort to change tax law in such a way that will allow companies like NetJets to pay lower taxes.

Comments

[Meg CorrelloLux]

01:12 AM on 08/28/2012

Why will it take a decade? Hmmmm? Should be done in a year and more within a decade.

[Daniel Tabor]

07:19 AM on 07/07/2012

Interesting how many people claim this is Buffet's liability, when it is a company he is not the OWNER of, but the CEO of a company that owns this company (NetJets). Whatever Berkshire Hathaway or NetJets, or both, owe in taxes is NOT BUFFET'S LIABILITY. So talking about Buffet owing "buckets of cash to the IRS" is so much ignorant hogwash.

[Nightwinger]

11:54 AM on 04/17/2012

Thank you.
It's about time somebody mentions that Obama names a tax plan for a guy who owes buckets of cash to the IRS.

[FHP]

05:35 AM on 04/11/2012

The first sentence accuses Bufett of not paying his taxes and then this article says it's unclear how much and if Buffett is involved in this company at all. Another shining example of great american journalism.

[lukylip98]

05:26 PM on 04/02/2012

The left always knows what is best for the rest of us while they stuff their pockets.
Warren Buffett sits next to the king and is not Robin Hood.

[ctubbs70]

12:48 PM on 03/28/2012

Every company that I know of takes advantage of every tax loophole there is - what's news about that? And most companies I know (including non-profits) normally file for extentions to get their tax returns in - so Bershire probably does the same thing - big f'in deal. Typical respsonses on here - you only skim the surface of a story and not the details, Buffett pays his taxes and even RELEASED his returns. FACTS - you might want some to come to an informed decision right wing trolls.

[heathergreeneyes]

11:30 PM on 04/14/2012

Great! So then you have no problem when Exxon or Haliburton does the exact same thing, they can also take advantage of every loophole there is.

Oh right! The left never misses a chance to bitch when big oil does it. They just write a post like yours when the company in question is one they like!

Don't liberals scream for windfall profit taxes on Exxon's "excessive profits"? Well Apple computers profits now exceed Exxons! Lets see how long it takes liberals to demand a windfall profit from Apple computer!

I won't hold my breath though!

[dtairtime]

12:11 PM on 03/28/2012

Buffet = hypo/crite

I wonder how many millions or sweetheart deals he got in exchange for his activism on taxes?

[frank1946]

08:16 AM on 03/28/2012

Tax the Rich Poster Child is a Hypocrite ?

Warren is actually a professional Comedian...................DEMS are his specialty !

NetJets pays a lower rate than his Secretary, how could that be ?

[wackette]

07:59 AM on 03/28/2012

We have can't continue to let the fox guard the hen house... all government employees
(from the president to congress and down) should be paid "minimum wage". Can you
imagine how many problems would be solved (quickly) by that one change? We need our
people at the top, watching all the "fat cats", not "in bed" with them.

[Cynthia Shore]

07:19 AM on 03/28/2012

Hypocrisy of the left is sickening.

[NorquistNemesis]

04:45 AM on 03/28/2012

Yeah, uh-huh. Sounds like a 6 degrees of Warren Buffet game the Cons are putting out there.

[Jacey Smythe]

04:32 AM on 03/28/2012

Forget NetJets...Warren Buffet owes the govt 100MM (million) in unpaid taxes, he has been using high priced lawyers to avoid paying the taxes for years. That old creepy dude is a scam...he takes stock instead of salary, so his secretary pays tax on salary and he pays tax on $1 only....but he is in the right pocket now to avoid paying his fair share...just like GE (no -0- tax on 5 Billion revenue), Solyndra, Trubo-Tax Gietner, Rangle, Sharpton...the list is endless of cronies and politicians gleeming the system, while strong arming the middle class for more.

[NorquistNemesis]

04:50 AM on 03/28/2012

Pffft! What you are accusing him of is no different than what fright-wing millionaires already do. So the question is whether you're more upset over what you perceive as hypocrisy or what you proclaim he is doing? Because if it's the latter, there's a whole list of people you should be railing against. The only difference is they are not prominent for promoting "liberal" policies.

[Jacey Smythe]

06:20 AM on 03/28/2012

You got it...hypocracy and lies! Yes, the "entire list" should have to pay their fair share, and if they are politicians having a hired position of trust...kick em all out! Dont you see he is a fake, he is not really promoting liberal policies...he is pretending. He has no skin in the liberal policy game...he is pretending with a wink and beating the system on taxes fully condoned by the admin in exchange. So yes, I feel that sucks. And I dont care if they are right-wing, left-wing or chicken-wing....they all need to stop getting away with gleeming the system, since their manipulations and theft are always paid for by the sweat and tears of the middle class. Do you get it now? Or is he above reproach because he feins to agree with your ideals...he might as well sell snake oil off a wagon. Did you know he manipulated Barack with the stimulus, he advised and directed funds, and then benifited by picking up the corporate stocks once driven low and then increased using Barack...and he made more billions. And he still doesnt pay taxes, dont you think that is wrong? You think its right for him to do that to Barack? Do you get it now?

[dtairtime]

12:14 PM on 03/28/2012

Exactly - he is NO better yet he preaches just the opposite.

At least you admit he is no different then the rest of the 1% - he is just smart enough to find another way to profit from it - he stumps for higher taxes all the while avoiding paying every penny he can.

That my friend is a classic definition of a hypocrite. Even worse I would say he has stopped over the line far enough to be criminal in his morals and ethics.

[TallMagnolia]

08:13 AM on 03/28/2012

Everything you said is baseless. Warren Buffet does his own taxes and pays it straight with no loopholes. He said as much in an interview with Bill Moyers, and all you need to do is look at the TAX RETURNS HE RELEASED to verify it.

5 cents a post is no way for you to make a living.

[Jacey Smythe]

12:47 PM on 03/28/2012

Oh he said so, LOL. The IRS is in litigation with him for years over past due hundreds of millions of dollars...that is a straight fact! Read, research and learn...and maybe one day you can be Warren Buffet and BS the public and the IRS.

[Carol McCormack Stone]

04:12 AM on 03/28/2012

Hmmm a private company, NETJETS. So the media is linking Buffett to this company how??? Because he is a stockowner & owns some shares? Really?

[heathergreeneyes]

11:34 PM on 04/14/2012

Buffet runs these companies in the same way the CEO's of Exxon or the CEO of Haliburton run those companies.

But your more then happy to blame Cheney for anything Haliburton did, but Buffet somehow gets a free pass!

Classic liberal!

[ylobrkrd]

01:00 AM on 03/28/2012

It's not clear to what extent, if any, Buffett himself is personally involved in the decision-making process at NetJets.

Knowing to "what extent" would have made the article worthwhile since HP decided to stress that it was part of Buffett's holdings.

[sandiegoconservative]

02:18 PM on 03/28/2012

Warren Buffett is infamously known for his involvement and knowledge in his holdings and dealings. Don't try to whitewash the issue. He uses tax tricks to pay less and then argues that he should be paying more. He is trying to have his cake and eat it too, and he is playing the Dems for suckers.

[ylobrkrd]

11:15 PM on 03/28/2012

They need to bring some investigative proof. This is not Fox or at least it wasn't.

[rotorhead1871]

12:44 AM on 03/28/2012

Alzheimers????