Cubs Sale Could Attract IRS Attention

As I'm at work, I don't have the time to write a full FanPost on this. But if you're expecting the sale to be over soon, stop. Sam Zell's creative accounting habits could have the IRS holding things up.

over 2 years ago Chris Dobbertean 9 comments 0 recs |

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I cannot imagine...

… that this has not all been worked out ahead of time and that the writer is simply speculating.

"You can observe a lot just by watching." ~ Yogi Berra

by Al Yellon on Sep 22, 2009 3:21 PM CDT reply actions

I have to agree...

These guys are no strangers to making huge financial transactions. I’d have to believe they pay enough learned people to make sure that the deal “meets code” so to speak.

by SouthernCub on Sep 22, 2009 7:16 PM CDT up reply actions

Don't bank on it...

There have been reports of the IRS being interested in going after Zell for over a year now. Supposedly, the Tribune deal is even still under review with them.

by Damen Jackson on Sep 23, 2009 4:14 PM CDT up reply actions

sadly with Zell

this would not be a shock. I hope and pray its nothing more than speculation, but not much can surprise me with Zell

baseball is a game of outs......pop out, ground out, line out, pitch out, strike out, fly out, and Fox and Bud's favorite black out

by Cubbie-Tim on Sep 22, 2009 3:48 PM CDT reply actions

I have a feeling

the sale will go through but the tax implications may bite Zell in the back. Couldn’t happen to a better guy.

by ChicagoRobb on Sep 22, 2009 6:55 PM CDT reply actions

Just ask yourself

if it seems fair to avoid paying capital gains tax on $800M profit simply by selling only 95% of the team rather than 100%. It’s outrageous to the extreme.

I hope the IRS does come out and challenge the attempt. Otherwise we all will be paying to replace the taxes that Zell is trying to avoid.

If you like Selig's handling of the steroid issue, you'll love his choice for next Cub owner.

by tharr on Sep 22, 2009 7:20 PM CDT reply actions

If that's the rule, then I don't see the problem...

blame the system and the rules, not the guy working the rules to his advantage.

Not saying I’m happy about it, by the way.

by SouthernCub on Sep 22, 2009 7:39 PM CDT up reply actions

My point is

the rule is outrageously flawed, It was obviously placed into the tax code by someone inside and allows a privileged few to game the system. Most of us have no special tax laws written for them. In this case, Zell is gaming the system and all of us are paying for his unpaid taxes.

I see a definite problem with that.

If you like Selig's handling of the steroid issue, you'll love his choice for next Cub owner.

by tharr on Sep 23, 2009 2:58 AM CDT up reply actions

The IRS may not scrutinize it right away but they may do it eventually...

I read “Tax Notes” (a publication for tax accountants and lawyers) for work in media monitoring. There are regularly articles and summaries regarding tax cases that are years (not months) in the making.

Just a preface, I realize a sole proprietership is far different from a hugh corporation and it’s apples and oranges in comparison, but I offer this anecdote. When my father retired and sold his sole proprietership business, his accountant advised him to be on the conservative side, hang on to his records for ten years after the sale in case the IRS wanted to review . She told him at the time, the IRS would normally look at a small business like his within three to five years of the sale if they were going to do so, but she felt ten would be safer. If that’s for small business, imagine what it might be a large corporation.

"Pinky, are you pondering what I'm pondering?"--The Brain

by brook on Sep 23, 2009 8:30 AM CDT reply actions