Tax refund for frauds

In My Humble Opinion
1

http://www.washingtonpost.com/wp-dyn/articles/A7656-2003May2.html

I read in the WSJ on Thursday about this, and found this link today. At first I was appalled to find that companies that purposely overstated earnings are now asking for their money back. The Washington Post article put me much more at ease, as it stated that many in Washington are trying to make sure the money goes to investors and creditors, not executives. So what do people think about this sick twist on a not-so-bright part of buisiness history?

2

I hope they make laws immediately so that they cannot get their money back. That said, if there are no laws against it now, I guess they should get it back.

3

General Questions is for questions that have factual answers. IMHO is for opinions and polls. I’ll move this to IMHO for you.

Off to IMHO.

DrMatrix - GQ Moderator

4

They aren’t acting abashed, are they? I hope the IRS and the (DOJ? SEC?) gang up on them.

And if they don’t, it looks as if they are documenting their own fraud. Class action, anyone?

5

Businesses and many people often have to “estimate” earnings for reporting purposes and the IRS knows full well it is an estimate. It can and does get abused but amending a tax return is hardly illegal.

6

The IRS is a full partner in business and there is no law about overestimating taxes and paying too much AFAIK - even intentionally (again AFAIK). I see no reason for the IRS to hold this money as it is not theirs - they really have no claim to it.