|broken_lens: Your comments are relevant to a post I authored "many, many" moons ago, but never posted it because I didn't follow the calculations all the way through to their logical conclusion. So, thanks for asking the question. I will update my prior calculations to correspond to your question about the number of lenses.|
re: I can't find the reference back, but I think 34,000 lenses got sold?
The reference was in Post# 3767 on September 19, 2017 where Rankine said:
Presently, their are 34,000 lenses that have been manufactured and delivered to Delta. They are at the construction site, have been placed into the solar frames and into the solar rings. They are in a state of readiness and produce enough heat to exceed the accepted heat threshold every day the sun shines.
You said: If everyone took a $1,000 tax deduction, that would be $34 million
Actually, it's a tax CREDIT, which is tons better than a tax DEDUCTION. Tax CREDITS provide a dollar-for dollar reduction of your income tax liability.
It's a $1,050 credit (30% of $3,500) for EACH lens, so the total amount of credits would be $35,700,000. That's certainly worth the IRS' efforts to recover their lost revenue.
On top of that is a depreciation DEDUCTION. Tax DEDUCTIONS lower your taxable income and they are equal to the percentage of your marginal tax bracket. Each deduction depends on each person's financial situation for each year, so there is no way we can determine the actual amount without an audit. 25% is the 2016 marginal tax rate for a taxable income in the range of $37,651 – $91,150. Some would be greater, and some less ... but we'll just use a nice round 25% for the purposes of this calculation.
25% of $35,700,000 = $8,925,000. Added to the credits gives us a grand total of $44,625,000 in tax benefits that would have to be returned to the IRS. That's a bunch o' bux and well worth pursuing.
But, wait. We're not done.
Another amount we can't compute is the interest due on the underpayment from EACH return, compounded DAILY from the day it was due. All the way back to 2010 in some cases. OUCH !!
That amounts to financial ruin for "many, many" RaPower3 families.
Note that one of the demands from the IRS/DOJ is for the Defendants to disgorge all the funds they received from the operation of the "tax scheme" (their term, not mine). So, that's another $35,700,000 into the IRS coffers. Which give us $80,325,000.
I think so.
But, wait. We're still not done.
To the above amounts, add in the future savings for the Treasury if they can halt the sale of more lenses, thus eliminating future bogus tax credits. It's an MLM, so its reach keeps expanding. And, expanding. And, expanding. At least, that's the theory. If they really only have 1,300 members in seven years since RaPower3 was born, they've been doing a pitiful job of recruiting. Anyway, there's no telling how big that number could be.
And, then there is a possibility of Civil and Criminal monetary fines for the promoters.
Civil fraud can include a penalty of up to 75% of the underpayment of tax attributable to fraud, in addition to the taxes owed.
Criminal convictions of promoters and investors may result in fines up to $250,000 and up to five years in prison.
Some of the more influential "Team Members" might also be included in the civil/criminal group. Still more bux to pursue.
Sounds to me like settling out of court before the trial begins is an attractive option. I suspect the IRS/DOJ are likely to be more lenient now than after the trial begins. The Defendants' case could get weaker every day, so the IRS would have less incentive to agree to a settlement. Then, after you settle, you can morph into a witness for the Plaintiffs. Maybe even get paid to be a witness. Life is good.
But, then ... the IRS & DOJ could be wrong, the Judge will rule in IAS/RaPower3's favor, and he could say all the tax benefits were appropriately claimed.
If that happens, then the existing lens owners will be happy ... and I should buy "many, many" lenses myself. Because at that time, the "too good to be true" exposure will have been eliminated. Which means conservative (and honest) taxpayers like me could enjoy a risk-free tax advantaged investment. Wheee !!!!
However, according to a Shepard quote from back in April of 2010, I wouldn't be able to afford to buy any lenses, because I'm just a "dime-a-dozen unheralded software guy with no visable means of support". Yes, he misspelled "visible".
Note that the above figures are just food for thought based on some not-so-wild guesses and some possibly poor assumptions. They should not be relied upon to make decisions. Check with your financial advisor.
The above text had absolutely NOTHING to do with the viability of the technology. That's a whole 'nuther topic. Believe it or not, I have an opinion or two about that. Make that a few opinions? Maybe several? How about "many, many"?
"If it sounds too good to be true, it probably is."
Sure is a pretty day.