Writing 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 suffering.”
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.
According 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 government.”
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