Software Magnate Hit With $16M Tax Bill For Using Shelter

Law360, New York (March 7, 2014, 1:14 PM EST) -- A Florida federal court on Thursday said a former owner of software giant American Megatrends must pay over $16 million in taxes after he used a complex tax shelter to duck the Internal Revenue Service, but the court tossed out IRS demands for substantial penalties.

U.S. District Judge Roy B. Dalton Jr. said American Megatrends co-founder Pat Sarma used a tax shelter called Family Office Customized Partnership, or “FOCus,” dreamed up by KPMG and financial advisory company Bricolage, to offset an $80 million capital gain after...
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