Billionaire Pays Back Erroneous Tax Deduction

Mr. Cooperman claimed a tax deduction on a $43 million contribution from a hedge fund to the Leon and Toby Cooperman Family Foundation. It is against federal law to get a tax break on non-publicly traded investments to give to your own foundation. Mr. Cooperman claims that the error was made in good faith and is paying back the tax break he received plus interest. He also argued against the $5 million penalty that the IRS is trying to collect from him.

See Billionaire Donor Wins IRS Fight Over Penalties on Foundation Gift, The Chronicle of Philanthropy, Dec. 7, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.