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...
To view the full article, register now.




Case Information

Case Title

Kearney Partners Fund, LLC v. United States of America

Case Number



Florida Middle

Nature of Suit



Roy B. Dalton, Jr.

Date Filed

March 9, 2010

Law Firms

Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.