Monday, July 23, 2012

IRS Doesn't See PEU People

Tax Analysts reported:

A growing class of business entities - from investment funds like the Carlyle Group to private hedge, private equity, and venture capital funds - largely escape IRS audits due to their forms of organization.

Large, widely held partnerships, including publicly traded partnerships (PTPs) - which generally have thousands of direct and indirect partners - seem largely to escape the scrutiny that the Service gives to their C corporation counterparts.

PTPs (such as oil and gas and real estate funds and investment funds like the Blackstone Group LP, the Carlyle Group LP, and KKR & Co. LP) aren't the only lucky ones," she writes. "While private hedge, private equity, and venture capital funds might not be widely held in terms of the number of direct partners, if one of their investors is a fund of funds, the number of indirect partners balloons.

The Carlyle Group employs former IRS Commissioner Charles Rossotti.  Private equity underwriters (PEU's) are a key link in the chain of the Government Corporate Monstrosity, Eisenhower's Military-Industrial Complex on trillions in federal steroids and billions in tax breaks.  The IRS doesn't see PEU people.  That goes for Red and Blue versions.