Can Clarence Thomas be charged with tax evasion?

[Old Crank]

Not just ethics violation but getting something of value and not reporting it. There are tax consequences for gifts and I think the value is very low before they have to be reported to the IRS.
It is also my understanding that if you make mistakes on your taxes there is a 7 year statute of limitations. That doesn't apply for knowingly violating the law. So the IRS could go back 20 years.

[2naSalit]

1. I hope so!

[Farmer-Rick]

17. The Giver pays the taxes NOT the receiver

From the link below:

The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead.

[bucolic_frolic]

2. The IRS on gifts and taxation

https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

[markodochartaigh]

15. On bribes

https://www.law.cornell.edu/uscode/text/26/162



LII U.S. Code Title 26 Subtitle A CHAPTER 1 Subchapter B PART VI § 162
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26 U.S. Code § 162 - Trade or business expenses
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(c)Illegal bribes, kickbacks, and other payments
(1)Illegal payments to government officials or employees
No deduction shall be allowed under subsection (a) for any payment made, directly or indirectly, to an official or employee of any government, or of any agency or instrumentality of any government, if the payment constitutes an illegal bribe or kickback or, if the payment is to an official or employee of a foreign government, the payment is unlawful under the Foreign Corrupt Practices Act of 1977. The burden of proof in respect of the issue, for the purposes of this paragraph, as to whether a payment constitutes an illegal bribe or kickback (or is unlawful under the Foreign Corrupt Practices Act of 1977) shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud)

[gab13by13]

3. The IRS will charge Clarence with tax evasion

right after it charges Donald Trump.

[onenote]

12. Are you suggesting gifts are taxable to the recipient?

Because that is not the law.

[Farmer-Rick]

19. Oh, thank god

Someone else who sees the flaw in the reasoning of making a receiver of a gift pay taxes on it.

[ancianita]

18. I've read the Internal Revenue Service (IRS) has the authority to conduct a criminal investigation

and refer the case to the Department of Justice (DOJ) Criminal Tax Division for prosecution.

[wishstar]

4. Gifts up to $16000/yr aren't taxable and donor is responsible for gift taxes under IRS rules

$16000 was the 2022 limit, was $15000 in earlier years. The donor could face consequences for not reporting gifts worth more than the tax exempt amount but seems likely that this donor limited what he considered the value of the yearly gifts to the exempt amount.

[FBaggins]

7. Also - gifts aren't valued at what they would cost to purchase

A transatlantic flight on a private jet would vastly exceed any gift limits...

... but if you own a private jet and plan to fly to Milan anyway?... it doesn't really cost you anything to take a friend with you. That friend could never afford to stay at a villa in the mountains... but if you own one, the additional expense to let someone stay with you is not going to be reportable.

[FBaggins]

5. Gift taxes are paid by the giver, not the recipient

Congress just passed a law requiring reporting of some of what was recently reported, which implies that there was no such (formal) ethical requirement at the time.

[bluestarone]

26. Yea. I look at this as

Hey go ahead and lie cheat or whatever, because THIS rule covers their ass!! How much more BLATANT can it be?

[RocRizzo55]

6. Absolutely.

He has to pay taxes like everyone else.

[onenote]

11. And like everyone else, he's not responsible for taxes on gifts he receives.

So absolutely not?

[Mysterian]

13. Up to $16,000

So, your absolute statement, "he's not responsible for taxes on gifts he receives," is incorrect.

[Hamlette]

22. after $16,000 the gift giver pays the tax. There is also a lifetime limit

I don't remember the amount but it is half a million or more.

[Mysterian]

28. Ooops! My bad

It seems like this is a rule that is rife for abuse, i.e., classifying gifts as non-income.

[Ms. Toad]

33. Gifts ARE non-income, by definition.

Income is compensation (for work, for use of money, etc.) Gifts are not compensation.

[Zeitghost]

34. Right

Because we all want to carry a stack of 1099's to hand out with Christmas gifts.

[Mysterian]

38. Right

https://www.nytimes.com/2000/04/02/business/irs-sees-increase-in-evasion-of-taxes-on-gifts-to-heirs.html

[onenote]

25. No, my statement is correct. Yours is incorrect.

The giver pays the tax, not the recipient. As has been noted multiple times in this thread.

[Mysterian]

27. You're right!

I misread the FAQ. Sorry!

[RocRizzo55]

14. I was answering the OP.

Which, in its title asked if CT could be charged with tax evasion.
I do know that he does not have to pay taxes on gifts, but what about other things?
Audit the whole lot of them.

[Whatever Whatever]

32. 26 USC 4941

Okay government officials are disqualified persons. It depends on how Harlan expensed the gifts -- through his company/foundation or personally (doubtful). Also, Thomas never claimed the $500k Ginni received through a foundation, so there's potential liability there -- especially subsection C.
-------------------

26 USC 4941: Taxes on self-dealing

(b) Additional taxes
(1) On self-dealer
In any case in which an initial tax is imposed by subsection (a)(1) on an act of self-dealing by a disqualified person with a private foundation and the act is not corrected within the taxable period, there is hereby imposed a tax equal to 200 percent of the amount involved. The tax imposed by this paragraph shall be paid by any disqualified person (other than a foundation manager acting only as such) who participated in the act of self-dealing.

(2) On foundation manager
In any case in which an additional tax is imposed by paragraph (1), if a foundation manager refused to agree to part or all of the correction, there is hereby imposed a tax equal to 50 percent of the amount involved. The tax imposed by this paragraph shall be paid by any foundation manager who refused to agree to part or all of the correction.

(c) Special rules
For purposes of subsections (a) and (b)-

(1) Joint and several liability
If more than one person is liable under any paragraph of subsection (a) or (b) with respect to any one act of self-dealing, all such persons shall be jointly and severally liable under such paragraph with respect to such act.

(2) $20,000 limit for management
With respect to any one act of self-dealing, the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $20,000, and the maximum amount of the tax imposed by subsection (b)(2) shall not exceed $20,000.

(d) Self-dealing
(1) In general
For purposes of this section, the term "self-dealing" means any direct or indirect-

(A) sale or exchange, or leasing, of property between a private foundation and a disqualified person;

(B) lending of money or other extension of credit between a private foundation and a disqualified person;

(C) furnishing of goods, services, or facilities between a private foundation and a disqualified person;

(D) payment of compensation (or payment or reimbursement of expenses) by a private foundation to a disqualified person;

(E) transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a private foundation; and

(F) agreement by a private foundation to make any payment of money or other property to a government official (as defined in section 4946(c)), other than an agreement to employ such individual for any period after the termination of his government service if such individual is terminating his government service within a 90-day period.

[KS Toronado]

37. Welcome to DU!

[gopiscrap]

39. welcome to DU

[progressoid]

8. Nope.

Unless there is something else out there that he's done that we don't know about.

[dlk]

9. There usually is when someone has shady ethics

Thomas has shown us who he really is.

[The Jungle 1]

10. Which is another reason the republicans are fighting the increase of IRS agents

The IRS is an open joke to the rich. They cheat and no one says a word.

[Farmer-Rick]

20. Yup, but if you fail to catch one of their

Thousands of tax regulations, they fine you big. It's a game of gotcha with the middle class and a game of look the other way for the filthy rich.

[flying_wahini]

16. Well what about Ginny's $600k that someone gave her and she dispersed to Proud Boys and used

On Rented buses for Jan 6. ?
It wasn’t declared as income, either, as I understood it.

[Farmer-Rick]

21. Yeah, that sounds more like an exchange for services

That can be considered income and taxed.

[Hamlette]

23. under your theory, if my friend invites me to her house for dinner I'd owe taxes?

With Thomas it just looks so bad. Especially to have his wife and the donor so involved in politics.

[Paladin]

24. Clarence Thomas, face a legal penalty? PERISH THE THOUGHT!

And upon his mournful passing, his soul shall reside in the right hand of Jesus, for all eternity.

Any other questions?

[Chainfire]

29. I will not be holding my breath...

[Chainfire]

30. Not a "gift" but payment for services rendererd.

Billionaires don't become billionaires by giving money away to their friends. It is only reasonable to believe that if you "Friend" was giving you extremely valuable "gifts" that the "friend's" interests would be considered in a legal decision that might affect him. Of course, knowing and proving are two different things, especially when you are one of the most powerful men in the nation.

[LiberalFighter]

31. So Thomas wasn't paid for something he did?

[JanLip]

35. Why no

He’s above the law. 🤮🤮🤮

Jan

[elocs]

36. This should be a question with a yes or no answer.

???