Some Random Kid Owes $172 Million in Taxes
The IRS says that Marcos Esparza Bofill, a young former Alphabet City resident (reported as a "hipster," for being a young Alphabet City resident), owes $172 million in back taxes. How'd that happen?
The Smoking Gun says the IRS won't comment on how Bofill, who moved back to his native Spain after an unsuccessful stint as a day trader, managed to earn the $500 million or so in 2006 that would justify such a tax bill. But a commenter there has a plausible theory!
He probably didn't file a tax return. They have the records of all his daytrading sales. When you don't file a tax return, the IRS assumes that each of your sales is 100% profit. So he did not have to earn $500 million, he only had to buy and sell $500 million worth of stock. This actually isn't as crazy as it sounds. $2.5 million dollars in trades per day isn't all that much for someone who might make 10 to 100 trades a day.
There you have it: there is not one god damn good thing about day trading.
