Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

DENNIS, I THINK HE WAS KIDDING

April 28, 2005

Dennis Kozlowski's defense team stepped back to the 1980s yesterday. Taking a page out of noted tax consultant Steve Martin's playbook, the former Tyco CEO said that he forgot about the $25 million loan that was forgiven in 1999 when he filed his extended return in October 2000:

"I just was not thinking when I signed my tax return that I had a $25 million loan forgiveness," Kozlowski said. "Year in and year out at Tyco, my tax returns for the most part had been correct. I didn't pick up on it."

Of course. That could happen to anyone.

The Tax Court doesn't buy the "I forgot" defense, but maybe the jury will. No doubt most of the jurors have had bigger loans forgiven, and will empathize with the defendant.

      Bookmark: del.icio.us • Digg • reddit