By Bill Wilson
for the New York Times recently, Berkshire Hathaway chairman and
chief executive Warren Buffett called for taxes to be increased on the
so-called “super-rich,” suggesting that he and his elite billionaire
and millionaire friends are itching to pay more.
Buffett wrote, “Most wouldn’t mind being told to pay more in taxes as
well, particularly when so many of their fellow citizens are truly
Of course, if that’s the case, why doesn’t Buffett’s company settle
its own ongoing tax disputes with the Internal Revenue Service (IRS)? As
Americans for Limited Government (ALG) has reported exclusively — a
story given national attention by a
New York Post editorial — according to Berkshire Hathaway’s own
annual report, the company has been embroiled in an ongoing standoff
over its tax bills.
Using only publicly-available documents, a certified public
accountant (CPA) detailed Berkshire Hathaway’s tax problems to ALG
researcher Richard McCarty. Now, the American people have a better idea
of how much in back taxes the company could owe Uncle Sam.
to page 56 of the company report, “At December 31, 2010… net
unrecognized tax benefits were $1,005 million”, or about $1 billion.
McCarty explained, “Unrecognized tax benefits represent the company's
potential future obligation to the IRS and other taxing authorities.
They have to be recorded in the company’s financial statements.”
He added, “The notation means that Berkshire Hathaway’s own auditors
have probably said that $1 billion is more likely than not owed to the
Get full story here.