Andy Beal Gets Bad News From an Appeals Court

Posted on April 30th, 2012 1:56pm by Tim Rogers
Filed under Business, stacking money

You’ll recall that two years ago a federal magistrate judge ruled that Andy Beal used a bogus tax shelter to create $153.6 million in tax losses for 2001. The judge also ruled, however, that the IRS had missed the deadline for disallowing those 2001 losses. A win for Beal.

Late last week, that win turned into a loss in the Firth Circuit Court of Appeals. Looks like the IRS didn’t miss its deadline after all. If you believe what the feds say, the loss on the 2001 tax year matter will cost Beal $70 million in tax and penalties. A pittance compared to the $5 billion his ex-wife wanted. (Of course, Beal’s ex is represented by Larry Friedman, which is all you need to know about which side you should root for.)

4 comments

  1. ANDY IS THE MAN. He’s pumped exponentially more funds into the Dallas economy. Let him keep and invest it. #Capitalism #evil wife

    @ 4:06 pm on April 30, 2012

  2. Shame on you for raising Mrs. Beal’s name for NO USEFUL PURPOSE except for self- gratification. Mrs. Beal is an extraordinary woman who had nothing to do with the case at hand. She is an exceptional person, devoted mother, caring friend, and valuable member of our community. She contributes generously of her time and money to organizations and people that need it. Hers’ and Mr. Beals’ divorce is not a current news item and there is no “rooting” for one side or the other when there are children involved. As for my representation, the only opinion that counts is Mrs. Beal’s and she can speak for herself…

    @ 9:01 am on May 1, 2012

  3. When I wrote this tax case up for the Morning News, I pointed out that had the IRS not apparently missed its deadline, Beal would have been found guilty of violating tax law. I really enjoyed the ridiculous letter Beal’s attorneys sent into the DMN complaining about this characterization. The U.S. government does not write and enforce tax “suggestions.” They are tax laws. Beal broke them. And the IRS has I believe 2 more cases for Beal’s subsequent tax years that are in process and accusing him of doing the same trick with losses, which, based on the results of this case, do not currently bode well for Beal. Mr. Rogers, nobody loves reading about the troubles of rich white Dallasites than your good readership – release your best reporting Kracken on this one – I sense Beal’s IRS troubles are just getting started.

    @ 11:09 pm on May 1, 2012

  4. Beal’s ex is gold digging slime. Similar to Larry Friedman: like attracts like.

    @ 10:00 am on May 4, 2012