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Anthony Badami

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Did Mitt Romney Commit a Federal Felony?

Posted: 10/03/2012 6:45 pm

Ben Ginsberg, long-time Republican lawyer and one of Washington's "most powerful, least famous people," told reporters today that Mitt Romney, "in the next five weeks," would be articulating further details about his so far under-articulated tax policy -- a proposal that VP candidate Paul Ryan said would take "too long" to explain (though Ezra Klein did it in 131 words).

But the area that really needs articulating is not Mitt Romney's tax plan. The Tax Policy Center already calculated that Romney would have to raise taxes on the middle-class, at the very least, to meet his stated goals.

No... the one outstanding question that deserves to be asked during tonight's debate, but won't, is this: Did Romney participate in a 2009 IRS amnesty program for tax frauds?

For years, the IRS has had a policy that allows tax evaders holding money in off-shore accounts to come forward voluntarily to avoid jail time, on the condition they pay back taxes, in addition to interest and major penalties. Fewer than 100 people a year availed themselves of this privilege, that is, until 2008, when a whistleblower at a UBS branch in Switzerland told the IRS that thousands of American clients held unreported accounts in the overseas bank.

Consequently, in February 2009, the Swiss banking giant was forced to pay $780 million to the federal agency, confess to criminal wrongdoing in "selling offshore banking services" that had "enabled tax evasion," and hand over about 4,450 American clients suspected of fraud.

In total, about 14,700 Americans turned themselves in. Disdainfully (but unsurprisingly), the IRS allowed these non-disclosing tax frauds to avoid imprisonment (of up to five years), as long as they complied with the previous terms of the amnesty policy. The agency also kept the names anonymous.

We now know, that until 2010, Mitt Romney maintained a Swiss bank account. We don't know much about it, nor any of his other offshore accounts in the Cayman Islands or Bermuda, because Romney has refused to release any full tax returns (except for the one nobody cares about).

As Matt Yglesias deftly observed, Romney was actively running for president in 2007 and 2008, so it's doubtful he was doing anything during those years "that he thought couldn't withstand scrutiny." But why not release tax returns from 2007 and 2008?

Because it looks highly suspicious to disclose returns from 2007, 2008, 2010, and 2011, but not 2009. The American public would ask in an instant: What are you hiding?

Well, we don't know for sure, but we can speculate. Or better yet, we can put loads of pressure on our elected leaders and the journos tethered to the campaign to ask Romney what might be the most important question of the electoral season:

Did you participate in a 2009 amnesty program for tax evasion, which, if the IRS wasn't feeling so generous, could have put you behind bars? If you didn't, will you show us your 2009 returns, including the FBAR?

I'm just asking.

 

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Ben Ginsberg, long-time Republican lawyer and one of Washington's "most powerful, least famous people," told reporters today that Mitt Romney, "in the next five weeks," would be articulating further d...
Ben Ginsberg, long-time Republican lawyer and one of Washington's "most powerful, least famous people," told reporters today that Mitt Romney, "in the next five weeks," would be articulating further d...
 
 
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HUFFPOST SUPER USER
Jmaximus Spartacus
09:22 PM on 11/26/2012
Doesn't matter if he did or not, rich people hardly never go to jail unless they are a political target like Madoff.
10:46 AM on 10/04/2012
I agree..this needs to be asked louder and more often. This is ow the wing nuts run everything..if you say it often enough nd loud enough..that's all that matters
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HUFFPOST BLOGGER
Paul Abrams
12:58 AM on 10/04/2012
Welcome to the fight!! I have been writing about this here since July 12th:.
http://www.huffingtonpost.com/paul-abrams/mittigate_b_1666802.html

http://www.huffingtonpost.com/paul-abrams/ask-mitt-about-amnesty_b_1674641.html

http://www.huffingtonpost.com/paul-abrams/prediction-romney-will-no_b_1684234.html

http://www.huffingtonpost.com/paul-abrams/romney-tax-amnesty_b_1737204.html

http://www.huffingtonpost.com/paul-abrams/mitt-romney-tax-amnesty_b_1807020.html

http://www.huffingtonpost.com/paul-abrams/hey-mitt-why-await-2011-r_b_1820659.html

http://www.huffingtonpost.com/paul-abrams/interviewing-mitt-romney-_b_1866894.html

I have directly contacted people who have access to the Romney campaign to ask the question. I even contact Jim Lehrer directly to ask him to ask the question.

As Nixon said, "the american people have the right to know if their president is a crook".

I hope you are more successful than I have been.
12:11 AM on 10/04/2012
Please ask louder!
10:32 PM on 10/03/2012
Did Mitt Romney murder a baby? Maybe, he has not released his taxes for the past few years so it is entirely possible, so perhaps he did.
This is complete conjecture and I am sad it counts as news
12:30 PM on 10/04/2012
Some people say they're sad this counts as news. I say, see this youtube about "news" http://www.youtube.com/watch?v=NYA9ufivbDw
This user has chosen to opt out of the Badges program
09:32 PM on 10/03/2012
Rephrase the question: Why did Romney not participate in the 2009 IRS amnesty program?
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Ed R
Thank God I'm an atheist.
09:26 PM on 10/03/2012
Interesting article, it raises questions that I've previously encountered merely as hints and vague allusions.

Mr. Romney has been running for president for 8 years and his failure to move his investments to to US bothers me to no end. Even if he moved the money four years ago he could have released 4 years of returns and skated pretty easily with that release.

Why would he not do that? One possibility is that he is greedy and cannot give up one cent of earnings. Another is that he has such disdain for us and believes that he is above scrutiny. The final thought is that the off shore investments are tax dodges and illegal, which dovetails with this article.

Or the motivation could be some combination of all three conjectures.
Citizen Able
Your micro-bio is STILL empty.
09:17 PM on 10/03/2012
Keep asking this question.
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rrp123
Evolution is real, but you may not be
08:37 PM on 10/03/2012
Very good article, I would love to see this question asked tonight.
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HUFFPOST SUPER USER
GroveGal10
chillin' on Biscayne Bay
08:30 PM on 10/03/2012
I've been bringing up Romney's enrollment in the Amnesty Program every chance I get. I wrote to Rachel Maddow, Chris Matthews and Lawrence O'Donnell asking one of them to do a show about this.

Being in this program is the only plausible reason why Romney cannot show returns from 2003 - 2009. Those who enrolled had to amend tax returns and show interest, fines and penalties for those years. If he shows those returns, we'd know he's in the AP.

Even though these "felons" were forgiven for fessing up, a candidate running for President of this country should not have a forgiven felony on his record. It's tax evasion and fraud.

Now how do we get a TV network to open this up? No one from MSNBC has responded to me.
12:15 AM on 10/04/2012
Lawrence O'Donnell has done segments on this and Ed Schultz has as well. I believe the reason the story isn't gaining traction is because it is hard to disprove a negative. You have to engage in deductive reasoning and it's hard to prove without actual evidence.

If enough people continue to talk about it, the story will come out. I also think that someone will take the liberty of disclosing this information- if they have access. It would be the patriotic thing to do.
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HUFFPOST SUPER USER
GroveGal10
chillin' on Biscayne Bay
06:47 PM on 10/04/2012
You know -we've been talking about his returns forever but about revealing them. The AP aspect has not been covered by major media outlets. HF writer, Paul Abrams, had a post a month or so ago. While it's speculation he's in the AP, it's one that need to be made. The American people who don't have time to keep up with politics deserve to know of this possibility. 
08:17 PM on 10/03/2012
This does matter, along with all the other Mitt Ideas that have been spewed out of his mouth, and twisted by his campaign reps... We really don't have any reason to trust Mitt Romney. We can look at who is ridding in his bus, and who is paying for his campaign. Sorry I don't like the company he keeps, or the business ethics he showed at Bain. I am so done with him as a possible President.
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HUFFPOST SUPER USER
dsb1252
Older and Much Wiser
08:13 PM on 10/03/2012
Obama should ask him during the debate.
07:56 PM on 10/03/2012
I have heard rumblings of this but this is the first article I have read actually devoted to it..... it certainly would make alot of sense and explain his refusal to release those returns.... I really "smell a rat" here... maybe it might be the last question asked of him in the final debate or before election day see how hard he tries to evade it.... would certainly like to see his reaction if asked that question
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HUFFPOST SUPER USER
GroveGal10
chillin' on Biscayne Bay
08:31 PM on 10/03/2012
Darla - it's been much discussed here but not recently. See my post above.
07:50 PM on 10/03/2012
Exactly. I can't even fathom that the American public can even consider voting a man in to run our country that won't even reveal his (considerable) finances. We used to worry about a thing called "conflict of interest". Apparently there is no such thing now?
07:41 PM on 10/03/2012
This good work .... I have been wondering how Romney fit into the Swiss banking tax evasion scheme.

I also suggest we go back to his Bain Capital days and investigate how he turned his IRA contributions into a $50 million to $100 million IRA account via offshore tax havens.

Romney did this by placing an obsurdly low valuations on dual structure equity of the companies he purchased at Bain. He then placed this low priced stock into his IRA. Of course, the value then magically skyrocketed while Romney paid no tax on the gains.

My guess is that if we examine those valuations of low priced stock, they will not withstand the scrutiny of an independent, third-party valuation.

Then there is the question of Romney gaming the tax system. Since a private equity company (Bain) is not allowed by tax law to do the above transactions, he had to create shell companies in the tax havens. Maybe legal, but, boy talk about gaming the system!