Church in Dutch with IRS for Tax Evasion?

[I Have Questions]

This is an incredibly damning report. All of the apologetics about the SEC scandal end with reassurance there wasn’t any unfair financial advantage or tax fraud with the shell companies. Turns out, it looks like there was an enormous amount of tax fraud. Worse, it looks like they did it on purpose.

Laypeople may not be willing to wade through all 82 pages, but I’m pretty sure everyone over at the BYU accounting dept will do so.

Why didn’t the SEC uncover it during their investigation?

[Dr Moore]

This is an incredibly damning report. All of the apologetics about the SEC scandal end with reassurance there wasn’t any unfair financial advantage or tax fraud with the shell companies. Turns out, it looks like there was an enormous amount of tax fraud. Worse, it looks like they did it on purpose.

Laypeople may not be willing to wade through all 82 pages, but I’m pretty sure everyone over at the BYU accounting dept will do so.

Why didn’t the SEC uncover it during their investigation?

The SEC doesn’t investigate tax matters. The IRS does that. If you read the report, you’ll see that the IRS only investigates churches if there is a whistleblower, and at that only with specific claims. Looks like the Ensign Peak whistleblower may not have known about this particular issue.

[Moksha]

I imagine this is how you become an apostle or area authority. Save the church 40-80 million dollars in tax fraud to prove your loyalty. Then you’re a “made man” in one of the world’s largest organized crime rings.

The lingo for a made man in the case is an Elder in one of the top Quorums or Presiding Bishopric.

By the way, Trump could issue the LDS Church a pardon for a donation. Since the Trump administration is relegalizing supersonic transport, perhaps the Church could buy him one of the new jet planes and cover the inside with gold foil and high-pressure flush toilets.

[I Have Questions]

Why didn’t the SEC uncover it during their investigation?

The SEC doesn’t investigate tax matters. The IRS does that. If you read the report, you’ll see that the IRS only investigates churches if there is a whistleblower, and at that only with specific claims. Looks like the Ensign Peak whistleblower may not have known about this particular issue.

Ah, I see. Thanks. Now that The Widows Mite has produced this information, how likely is it that the IRS will investigate?

[Dr Moore]

The SEC doesn’t investigate tax matters. The IRS does that. If you read the report, you’ll see that the IRS only investigates churches if there is a whistleblower, and at that only with specific claims. Looks like the Ensign Peak whistleblower may not have known about this particular issue.

Ah, I see. Thanks. Now that The Widows Mite has produced this information, how likely is it that the IRS will investigate?

Your guess is as good as mine. Probably slim to none under the current administration.

However, I could imagine two possible outcomes that would be just as effective. First, Deloitte looks really bad in this picture. I have friends who work there, and will just say that Deloitte is known to have "fired" clients for far less than this, i.e. deliberately keeping important tax information that results in material underreporting. That's a huge breach of the professional contract. Second, internal pressure. BYU has one of the most respected MACC programs in the country. I don't think it will stand for very long, having a pall of tax fraud which is demonstrable simply by comparing public filings, hanging over the church's investment manager. There are too many people in high places in the church who actually do care whether the church committed tax fraud. This looks like tax fraud.

For these reasons, I wouldn't be surprised if the FP orders any issues with Ensign Peak's past tax practices be rectified immediately. Not to do so would actually be a huge risk, since the IRS has no statute of limitations on civil tax fraud. Even if they do nothing under Trump, they could just sit on it until the next President.

[I Have Questions]

Ah, I see. Thanks. Now that The Widows Mite has produced this information, how likely is it that the IRS will investigate?

Your guess is as good as mine. Probably slim to none under the current administration.

However, I could imagine two possible outcomes that would be just as effective. First, Deloitte looks really bad in this picture. I have friends who work there, and will just say that Deloitte is known to have "fired" clients for far less than this, i.e. deliberately keeping important tax information that results in material underreporting. That's a huge breach of the professional contract. Second, internal pressure. BYU has one of the most respected MACC programs in the country. I don't think it will stand for very long, having a pall of tax fraud which is demonstrable simply by comparing public filings, hanging over the church's investment manager. There are too many people in high places in the church who actually do care whether the church committed tax fraud. This looks like tax fraud.

For these reasons, I wouldn't be surprised if the FP orders any issues with Ensign Peak's past tax practices be rectified immediately. Not to do so would actually be a huge risk, since the IRS has no statute of limitations on civil tax fraud. Even if they do nothing under Trump, they could just sit on it until the next President.

Speaking generally, the Church usually has to be forced into doing the right thing. It will be interesting if the report gains wider publication.

[Moksha]

I'm guessing "in Dutch" means "in trouble?"

Either that or they have a fondness for tulips.

[Moksha]

The righteous message board has not even mentioned this discovery by the Widow's Mite.

[sock puppet]

Donning my MG 2.0 hat: "I would think that you all would be more on board with the idea that a rainy day fund is a good idea. Just good stewardship. Maybe we will just have to agree to disagree. But here is an A.I. prompt and answer showing that a rainy day fund is a goo..."

Pretty good impersonation, except where's the topic derail?

[Marcus]

Donning my MG 2.0 hat: "I would think that you all would be more on board with the idea that a rainy day fund is a good idea. Just good stewardship. Maybe we will just have to agree to disagree. But here is an A.I. prompt and answer showing that a rainy day fund is a goo..."

Pretty good impersonation, except where's the topic derail?

Derailing topic: Rainy day fund pros and cons by churches like the LDS church, but really only pros and really only the LDS church.

Actual topic: Is the LDS church committing tax evasion, according to IRS rules?