‘Bad tax advice’ negates $43 million charitable tax deduction

August 12, 2010

Billionaire hedge fund manager Leon G. Cooperman thought he was making a $43 million donation that would save him substantially on his 2005 and 2006 tax returns.

The IRS, however, thought differently.

The tax agency says instead of a deduction, Cooperman now owes Uncle Sam $14 million in back taxes and another $5 million in penalties.

Adding insult to injury, Cooperman says he was just following the advice of his paid tax professionals.

Looks like Cooperman needs to find some new tax advisers. You can read more about the Cooperman deduction mess in Forbes.

And just so you don't end up in a similar, although I hope much less costly, tax mess, be sure to check out your tax pro carefully before you hire him or her.

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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