Briefcase

Unpaid taxes at $385 billion, according to IRS study of 2006

WASHINGTON – People and businesses underpaid their taxes by an estimated 17 percent in the most recent year studied, failing to send the government a massive $450 billion that it was owed, according to an Internal Revenue Service report released Friday.

The study covered 2006, the most recent data the IRS said was available. The amount of underpaid taxes far exceeded the size of the entire federal budget deficit at the time.

After IRS audits and other enforcement efforts, noncompliance in 2006 shrank to 14 percent. That left the final amount of unpaid taxes at $385 billion, the agency said.

Associated Press

Big casinos see $4 billion of red ink

CARSON CITY, Nev. – Nevada’s largest casinos suffered a combined $4 billion loss in 2011.

A report released Friday by the state Gaming Control Board shows 256 casinos grossed $1 million or more in gambling revenue for the fiscal year that ended June 30.

Combined, they had total revenue of $22 billion and posted a net loss of $3.9 billion from the previous year.

In 2010, the largest casinos had a net loss of $3.4 billion on total revenues of almost $20.9 billion.

Total revenue includes money spent by patrons on gambling, rooms, food, beverages and attractions.

The report says revenue from gamblers accounted for nearly $10.2 billion, or 46 percent, of total revenue.

Casinos paid $792 million in taxes and fees, equating to 7.8 percent of gambling revenue.

Associated Press

Yahoo CEO gets $27 million deal

SAN FRANCISCO – Yahoo dangled a $27 million pay package to lure its newly hired CEO Scott Thompson away from PayPal.

The struggling Internet company disclosed the details of Thompson’s compensation in a regulatory filing late Friday.

Thompson spent the past four years running eBay Inc.’s PayPal service, where revenue more than doubled during his tenure. PayPal took in an estimated $4.4 billion last year.

Thompson, 54, is highly regarded in Internet circles, although some analysts question whether he is the right fit for Yahoo because he has no experience in online content or advertising, the company’s financial lifeblood.

Yahoo offered Thompson a deal that includes a $1 million salary and a bonus of up to $2 million this year. Yahoo is guaranteeing to pay him $1 million of the bonus; the remaining $1 million will hinge on Yahoo’s financial results this year. Thompson also will receive stock incentives valued at $22.5 million.

Associated Press

No loan for Russian company’s plant

DEARBORN, Mich. – The U.S. Energy Department won’t follow through on a planned $730 million loan to the North American arm of one of Russia’s largest steel companies to modernize its Detroit-area plant.

The conditional loan for the Severstal North America project in Dearborn won’t be completed, the Detroit News and Detroit Free Press reported Friday.

The Energy Department didn’t detail reasons for canceling the loan. A department spokesman said the project has “merit” but not all projects that receive conditional commitments get green-lighted.

The planned loan to modernize the plant was announced in July.

The project was expected to employ about 2,500 construction workers and create 260 factory jobs.

Severstal bought the Dearborn factory in 2004.

Associated Press

Riding lawn mower originator dies

SOUTH BEND, Ind. – Riding lawn mower pioneer Cecil Pond has died at age 87.

Gary Pond, of South Bend, said his father died Dec. 30 in Palm City, Fla., about 10 days after suddenly falling ill and being hospitalized.

Cecil Pond and his father began making a small farm tractor in their garage in 1946. They eventually began making a tractor people could use to cut grass.

His son said his father came up with the idea because he hated mowing the lawn.

Pond’s company was called Wheel Horse Products. It made 22 attachments, including snowplows and plows for gardens.

Pond sold his company to American Motors Corp. in 1975. It was later sold to Toro.

Associated Press