University of Michigan gift in tax court - WNEM TV 5

University of Michigan gift in tax court

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IRS attorneys are flagging a high-profile real estate developer and his business partners for engaging in a tax avoidance scheme after they donated a collective gift to the University of Michigan.

The Detroit Free Press reports that a federal tax judge disallowed a $33 million tax deduction last month that Stephen M. Ross and partners received after giving a large donation to Ross' alma mater. The judge also imposed maximum civil penalties for a "gross valuation mistreatment" that could cost Ross and his partners millions more.

Ross' gifts make him the second largest donor to any college or university in the U.S.

A spokesman for Ross says he's likely to appeal the ruling.

Copyright 2017 Associated Press. All rights reserved.

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