William Josephson's March 17 Senate Finance Committee testimony on tax issues raised by Ponzi scheme scandals appears in multiple publications
Retired partner William Josephson, currently of counsel to the Firm, testified to the US Senate Committee of Finance on March 17, 2009 on ponzi schemes and charities. He stated that amending tax code sections 4943, 4944 and 4945 to eliminate the excise taxes on charities would likely deter charity scandals such as that involving Bernard Madoff. Mr. Josephson is also a former head of the New York State Attorney General's Charities Bureau. Tax Notes Today printed his testimony in its March 18 article, "Former Head of Charities Bureau Says Code Modifications Would Deter Charity Scandals," which was also reprinted in the May edition of the Exempt Organization Tax Review. EO Tax Notes Today also published the testimony.
In the May issue of the Exempt Organization Tax Review, Mr. Josephson also answered the questions of the Honorable Max Baucus, chair of the Senate Finance Committee of Finance, asserting that the tax that is imposed when private foundations' investments jeopardize charitable purposed should apply to public charities as well.
In addition, selected comments to the Senate Finance Committee, along with the Q&A with Senator Baucus, were published under the title "Tax Issues Raised by Madoff-Related Charity Investment Scandals" in the May issue of The CPA Journal.