IRS says ‘tax avoidance’ at heart of Solyndra bankruptcy plan

[PapaG]

100k sq ft of manufacturing space, most of which was never even operational.

Watching the wheels come off this fraud in the WH is going to be amazing.

The Internal Revenue Service urged a bankruptcy judge to reject solar panel maker Solyndra’s bankruptcy plan Wednesday, saying it amounts to little more than an avenue for owners of an empty corporate shell to avoid paying taxes.

“The undeniable conclusion is that tax benefits drive this plan,” attorneys for the IRS wrote in a bankruptcy pleading.

Arguing that the bankruptcy court ought not confirm a plan “whose principal purpose is tax avoidance,” attorneys said in filings in U.S. Bankruptcy Court in Delaware that the tax breaks would be worth more money than funds set aside for creditors.

Taxpayers are on the hook for more than a half billion dollars after the company filed for bankruptcy last year, just two years after winning a loan guarantee from the Department of Energy.

What’s more, government attorneys said that as far back as 2010, Solyndra owners had “planned meticulously” to be able to use Solyndra’s net operating losses to offset future tax liabilities.

“The only reason for the shell corporation to exist post-confirmation is to enable its owners to exploit these tax attributes, which would be lost in liquidation,” the IRS argued in court papers.

One owner valued the so-called tax attributes at $150 million, dwarfing the $7 million to $8 million set aside by the reorganization plan for unsecured creditors, according to the government’s objection, which was filed by the Justice Department on behalf of the IRS.

Under Solyndra’s reorganization plan, two big investors in the company, Madrone Partners LP and Argonaut Ventures, would together own nearly all of a shell company in the wake of Solyndra’s bankruptcy reorganization.

But the IRS said in court papers there was little reason for the shell company to exist other than to help the owners avoid taxes. Argonaut is the investment arm of a family foundation headed by Oklahoma businessman George Kaiser, a fundraiser for Mr. Obama’s 2008 presidential campaign. Madrone has ties to the family that owns Wal-Mart.

Even as company officials negotiated a restructuring deal with the Energy Department to keep Solyndra afloat, the company’s owners were “intently focused” on how to preserve their ability to use net operating losses as they privately prepared for the possibility that Solyndra would go broke, according to the government attorneys.

In one email, dated Dec. 7, 2010, Steve Mitchell, a managing director at Argonaut who served on Solyndra’s board, told lawyers there was a “decent likelihood” that Solyndra would go bankrupt within 10 days.

Mr. Mitchell devoted much of the rest of the email to “the need to preserve an estimated $750 million of NOLs in Solyndra,” referring to net operating losses, according to the court filing.

“We need to discuss appropriate course of action in the event of filing and trustee appointment,” Mr. Mitchell told the lawyers. “The company has a significant NOL, potentially as high a (sic) $750 million, and George [Kaiser] has a high interest in understanding any manner in which we can preserve the NOLs.”

A spokesman for Mr. Kaiser was not immediately available Wednesday.
The government lawyers said that while the reorganization plan had “some marginal benefits,” there was no doubt that the most important priority was to “preserve a shell corporation to be able to reduce future tax liabilities by hundreds of millions of dollars.”


Read more: IRS says 'tax avoidance' at heart of Solyndra bankruptcy plan - Washington Times http://www.washingtontimes.com/news...ce-heart-solyndra-bankruptcy-p/#ixzz28wceAptI
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[dviss1]

Please Stop with the Solyndra stuff man... It's basically been debunked..

http://www.politifact.com/truth-o-m...fe/solyndra-loan-george-w-bush-david-plouffe/

Our ruling

Plouffe said that the loan guarantee program that awarded half a billion dollars in guarantees to Solyndra "was supported by President Bush." The program was created on Bush's watch by a law he signed and promoted. The program grew under the Obama administration, which ultimately awarded Solyndra's loan guarantee under a new section of the law created by the stimulus. The Bush administration, though, promoted the loan guarantee program, and Bush himself touted it on his way out of office. There's also evidence his administration specifically prioritized Solyndra's project. We find Plouffe's statement Mostly True.

 

[PapaG]

The IRS does not think it is debunked. They protested the sham bankruptcy filing today.

 

[3RA1N1AC]

i think davis was just referring to your obama tie in

government backed companies fail all the time, and often spectacularly

 

[MARIS61]

The IRS does not think it is debunked. They protested the sham bankruptcy filing today.

How does the IRS, who works under Obama's direction, going after Solyndra's bankruptcy reflect badly on Obama?

 

[MARIS61]

BTW, the IRS (just like all private sector credit collection agencies and companies) nearly always protests any bankruptcy filing. Doesn't mean they have a leg to stand on.

 

[PapaG]

i think davis was just referring to your obama tie in

government backed companies fail all the time, and often spectacularly

Is DViss Ben Davis? LOL

 

[PapaG]

BTW, the IRS (just like all private sector credit collection agencies and companies) nearly always protests any bankruptcy filing. Doesn't mean they have a leg to stand on.

BTW, you've been a clown act since you claimed you were really Roger Maris on the ESPN boards years ago.

 

[Denny Crane]

Actually, the truth is it was a Bush program, indeed. However, the Bush admin looked specifically at Solyndra and rejected loans or other support. Obama admin looked at it again and also found it a questionable investment but went ahead anyway.

 

[PapaG]

Actually, the truth is it was a Bush program, indeed. However, the Bush admin looked specifically at Solyndra and rejected loans or other support. Obama admin looked at it again and also found it a questionable investment but went ahead anyway.

I love how you ignore the ties of Solyndra's executives to the Obama administration.

Thankfully, all of this will be coming to an end in less than a month. Where has Obama been hiding this week?

 

[MARIS61]

Where has Obama been hiding this week?

Why do you keep implying he's hiding? He's campaigning quite publicly. He made an appearancve at Ohio State University yesterday, for example.

 

[BLAZER PROPHET]

Has the question of where all the loan money went to? Or to who?

 

[Denny Crane]

npr a satisfactory source?

http://www.npr.org/2011/09/16/140530082/weekly-standard-solyndra-debacle-blame-bush

If the first consideration of Solyndra came during the presidency of George W. Bush, that means that the application for the loan guarantee came after the Energy Policy Act of 2005 was passed. Clearly, this type of loan guarantee program was not a Bush Depratment of Energy (DOE) priority. The fact that Solyndra submitted a loan application does not mean the Bush White House or DOE approved the program or did more than accept the application and shuffle the paperwork a bit. And the DOE emails mentioned above appear to confirm that is all that happened.

It only became a White House priority after Obama took office. As the same ABC news report above goes on to note, "The Solyndra loan was so central to this strategy that the administration initially planned to have Obama personally announce it, and later sent the president to the company's solar panel manufacturing facility in Fremont, California to celebrate its work."

But the Obama White House's attempt to blame the Solyndra mess on the previous administration underscores how opportunistic and selective they've been when it comes to crediting Bush. Note that while the effort to take out Osama bin Laden began under the Bush administration, that point was not mentioned when the president took credit for it, even though it was a Bush priority and major efforts were directed at the effort.

With Solyndra, however, it's being associated with Bush even though all they did was have an ineffectual bureaucracy that accepted proposals from anyone who submitted them.

 

[BLAZER PROPHET]

npr a satisfactory source?

http://www.npr.org/2011/09/16/140530082/weekly-standard-solyndra-debacle-blame-bush

If the first consideration of Solyndra came during the presidency of George W. Bush, that means that the application for the loan guarantee came after the Energy Policy Act of 2005 was passed. Clearly, this type of loan guarantee program was not a Bush Depratment of Energy (DOE) priority. The fact that Solyndra submitted a loan application does not mean the Bush White House or DOE approved the program or did more than accept the application and shuffle the paperwork a bit. And the DOE emails mentioned above appear to confirm that is all that happened.

It only became a White House priority after Obama took office. As the same ABC news report above goes on to note, "The Solyndra loan was so central to this strategy that the administration initially planned to have Obama personally announce it, and later sent the president to the company's solar panel manufacturing facility in Fremont, California to celebrate its work."

But the Obama White House's attempt to blame the Solyndra mess on the previous administration underscores how opportunistic and selective they've been when it comes to crediting Bush. Note that while the effort to take out Osama bin Laden began under the Bush administration, that point was not mentioned when the president took credit for it, even though it was a Bush priority and major efforts were directed at the effort.

With Solyndra, however, it's being associated with Bush even though all they did was have an ineffectual bureaucracy that accepted proposals from anyone who submitted them.

I think it's Obama's version of "transparency in government".

 

[Denny Crane]

I think it was "change" from what Bush was doing. Everything he did was wrong, after all.

 

[MARIS61]

Note that while the effort to take out Osama bin Laden began under the Bush administration, that point was not mentioned when the president took credit for it, even though it was a Bush priority and major efforts were directed at the effort.

"I don't know where bin Laden is. I have no idea and really don't care. It's not that important. It's not our priority." - G.W. Bush

 

[Denny Crane]

"I don't know where bin Laden is. I have no idea and really don't care. It's not that important. It's not our priority." - G.W. Bush

How about the whole thing, in context?

THE PRESIDENT: Deep in my heart I know the man is on the run, if he's alive at all. Who knows if he's hiding in some cave or not; we haven't heard from him in a long time. And the idea of focusing on one person is -- really indicates to me people don't understand the scope of the mission.

Terror is bigger than one person. And he's just -- he's a person who's now been marginalized. His network, his host government has been destroyed. He's the ultimate parasite who found weakness, exploited it, and met his match. He is -- as I mentioned in my speech, I do mention the fact that this is a fellow who is willing to commit youngsters to their death and he, himself, tries to hide -- if, in fact, he's hiding at all.

So I don't know where he is. You know, I just don't spend that much time on him, Kelly, to be honest with you. I'm more worried about making sure that our soldiers are well-supplied; that the strategy is clear; that the coalition is strong; that when we find enemy bunched up like we did in Shahikot Mountains, that the military has all the support it needs to go in and do the job, which they did.

And there will be other battles in Afghanistan. There's going to be other struggles like Shahikot, and I'm just as confident about the outcome of those future battles as I was about Shahikot, where our soldiers are performing brilliantly. We're tough, we're strong, they're well-equipped. We have a good strategy. We are showing the world we know how to fight a guerrilla war with conventional means.

Q But don't you believe that the threat that bin Laden posed won't truly be eliminated until he is found either dead or alive?

THE PRESIDENT: Well, as I say, we haven't heard much from him. And I wouldn't necessarily say he's at the center of any command structure. And, again, I don't know where he is. I -- I'll repeat what I said. I truly am not that concerned about him. I know he is on the run. I was concerned about him, when he had taken over a country. I was concerned about the fact that he was basically running Afghanistan and calling the shots for the Taliban.

But once we set out the policy and started executing the plan, he became -- we shoved him out more and more on the margins. He has no place to train his al Qaeda killers anymore. And if we -- excuse me for a minute -- and if we find a training camp, we'll take care of it. Either we will or our friends will. That's one of the things -- part of the new phase that's becoming apparent to the American people is that we're working closely with other governments to deny sanctuary, or training, or a place to hide, or a place to raise money.

 

[Masbee]

Please Stop with the Solyndra stuff man... It's basically been debunked..

http://www.politifact.com/truth-o-m...fe/solyndra-loan-george-w-bush-david-plouffe/

Our ruling

Plouffe said that the loan guarantee program that awarded half a billion dollars in guarantees to Solyndra "was supported by President Bush." The program was created on Bush's watch by a law he signed and promoted. The program grew under the Obama administration, which ultimately awarded Solyndra's loan guarantee under a new section of the law created by the stimulus. The Bush administration, though, promoted the loan guarantee program, and Bush himself touted it on his way out of office. There's also evidence his administration specifically prioritized Solyndra's project. We find Plouffe's statement Mostly True.

The self appointed and left of center fact checkers have been debunked as a scam. Get with the now.

 

[barfo]

The self appointed and left of center fact checkers have been debunked as a scam. Get with the now.

Facts don't matter. What matters is what you believe. Everyone is entitled to their own reality.

barfo

 

[Denny Crane]

Facts don't matter. What matters is what you believe. Everyone is entitled to their own reality.

barfo

So when the fact checker article ends with "mostly true" then is it facts or not?

(I think it's their opinion at that point)

 

[BLAZER PROPHET]

How about the whole thing, in context?

No, Denny, that would be asking just too much.