The New Tax Form That Might Spell Doom for Romney

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Offshore-investing Mitt Romney has withheld nearly all of his tax records, as we now know. But it turns out that he may have to reveal some of his most intimate financial information after all, and the timing couldn't be worse.

This week, someone very knowledgeable about taxes—an anonymous tipper, who I can't name or I'd have to kill you—let me know about some sweeping legislation approved by President Obama in 2009. The complicated series of reforms were designed to catch tax evaders who hide money in overseas tax havens, but the only part that's relevant to our interests is IRS Form 8938.

Form 8938 will require Romney to detail all his money in overseas accounts, at the risk of criminal penalty, and could cause a lot of trouble for Romney's campaign this fall.

Romney promised to release his tax returns for 2011 as soon as they're done, and he's filed for an extension, which gives him until October 15, about three weeks before the election. In the words of my source, Romney's taxes must include Form 8938, which requires him to "list the maximum value of each of his non-US investments as part of his tax filings."

Previously, we've seen estimates of part of Romney's overseas fortune. But this form is more specific than what we've seen before. It requires taxpayers to include "any financial account maintained by a foreign financial institution" and "any stock or securities issued by someone that is not a US person, any interest in a foreign entity, and any financial instrument or contract with an issuer or counterparty that is not a US person."

For at least a week, Form 8938 will drive the news cycle as reporters pick through every cent Romney has invested in offshore tax havens. Basically, it's going to be a very bad week to be Mitt Romney.

This raises a bunch of questions: Why would Romney October Surprise himself like this? Did he not even know Form 8938 existed? Will he try to dump the returns in August, during the Olympics, when he believes nobody is paying attention?

Form 8938 turns Romney's impending tax returns into a very specific threat to his own campaign; the information could be potentially more damning than anything we've seen before. recommended


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This is highly doubtful claim as most of the really super-rich hide their wealth and ownership through unregistered trusts, which are effectively untrackable (if anyone has really figured out how to track them, we'd appreciate a heads up on the matter).

It is unknown exactly when unregistered trusts came into being; could have been as early as the early 1900s, might be back in the mid 1960s when Marshall Langer and his ilk began creating all those offshore finance centers, etc.

If Romney's wealth, most likely considerably more than his official $250 million estimated valuation, is sheltered in unregistered trusts, there will be no reporting of it or sharing by foreign financial institutions.

This is one of the major reasons why the Forbes magazine yearly listing of the wealthiest shouldn't be believed --- it utilizes public sources only to compile their listing, and most of the assets of the super-rich are only listed privately, not subject to public scrutiny.

Ergo, the mythology of the so-called "philanthropist class" like the Rockefellers, Mellons, Guggenheims, etc., who supposedly gave away their fortunes --- in actuality they simply shifted their funds around in the best manner to avoid taxation (try to find any real charitable contributions by the Mellon family, for instance????).

Donating a "work of art" -- bought for $10,000 and valued by the donor at $70,000 profits the donor by $60,000 in tax benefits --- depleting or stealing from the public tax base by the crooks.

Funneling monies from a gov't agency, the CIA, DIA or NSA, for instance (and this happens frequently), through a foundation, for some project which benefits the corporate super-rich who managed said foundation, and then have matching funds from the gov't (i.e., taxpayers), is another way of stealing, however diabolically clever.

This is why they endow so many chairs at universities, so that Simon Johnson, former stooge econ from the IMF, can be a highly-paid prof at MIT, and espouse they mythology that the Rockefeller family gave away the bulk of their fortune to charity.

(To understand how America acts as an unregistered trust have, please research Corportion Trust below, it is not a "coincidence" that the Du Pont family were so involved in Delaware politics.)
Posted by sgt_doom on August 2, 2012 at 10:49 AM · Report this

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