Advertisement

 SAN FRANCISCO (AP) -Now that his team is out of the NBA playoffs, Golden State Warriors owner Chris Cohan has another fight to wage - with the federal government.
The Internal Revenue Service says Cohan owes more than $160 million in back income taxes and penalties from the 1998 sale of a cable television company.
The IRS claims Cohan set up three tax shelters to avoid a hefty bill after selling cable TV company Sonic Communications to Charter Communications for more than $200 million. As a result, the government is demanding about $95 million in past due taxes and another $66 million in penalties from Cohan, federal court records show.
``All three tax shelters were promoted, funded and closed as a package deal for Cohan's benefit,'' a motion the government filed in February states.
Cohan's attorney, Edward Robbins, didn't return a telephone call or an e-mail seeking comment from The Associated Press. A Warriors spokesman said the team had no comment.
In previous testimony, Cohan said that trusted advisers were in charge of all decisions regarding the Sonic sale.
The government alleges that Cohan paid $14 million to accounting firms KPMG and Presidio Advisors, Inc. to set the shelters up.
``The Cohans acknowledged entering into two tax shelter transactions ... overseen by Presidio Advisors, on the advice of KPMG Peat Marwick LLC and petitioner's attorneys that these were valid and supportable transactions,'' the motion states.
KPMG and Presidio Advisors are both subjects of federal criminal investigations into abusive tax shelters. Cohan is not a target of the criminal inquiry, however.
A previous attempt by the government to sue Cohan for the back taxes was unsuccessful. In 2005, Cohan's attorneys successfully argued that documents the IRS needed as evidence were protected by attorney-client privilege.
But the case was reopened in February after the federal government argued that Cohan had waived his attorney-client privilege during hearings in U.S. Tax Court.
Advertisement

Top NBA Public Bets

NBA Top Stories

Thumbnail Tim Duncan retires The San Antonio Spurs lost their franchise player on Monday, as Tim Duncan elected to retire after an amazing 19-year...
Thumbnail Rockets give Harden an extension The Houston Rockets locked up their star player for years to come, announcing an extension with James Harden on...
Thumbnail OKC's title odds plummet without Durant Following the announcement that Kevin Durant will be signing with the Golden State Warriors, the Oklahoma City Thunder's NBA title...
Thumbnail Durant heading to Golden State The shoe finally dropped in the Kevin Durant sweepstakes, as he has elected to sign with the Golden State Warriors for next...
Thumbnail Warriors now 2/3 to win title with Durant The Golden State Warriors were already favored to win the 2017 NBA Finals championship, but their odds improved even more after...
More inNBA Articles  

NBA Team Pages