Businessman Fights Another Multimillion-Dollar Irs Bill

Eastern Idaho agribusiness magnate Blaine Larsen got a $5.9 million federal tax bill overturned last year. He’s confident he can do the same with a new bill for $5.4 million from the Internal Revenue Service.

“I have never personally figured out an IRS tax form in my life,” Larsen said. “I have always trusted my accountants, and my accountants are telling me I’m in good shape on this.”

He and his wife, Connie, filed a petition last month in U.S. Tax Court in Washington, D.C., to overturn the latest IRS demand.

Last year’s case was for the 1989 through 1991 tax years. This year’s is for 1993 through 1995. Not only did Larsen avoid having to pay additional taxes in the first round, he even got a $91,000 refund from the agency.

“I probably paid millions of dollars in taxes through the years,” Larsen said last week. “The bigger you are, the bigger the target you make.”

Larsen owns Agribusiness Inc. and Blaine Larsen Farms Inc., which raises potatoes, wheat and hay and maintains a cattle feedlot.

His petition claims the IRS made a $15 million mistake in income adjustments it made for the 1993 tax year.

Their tax attorney, Mark Higgins, agreed. But he said he would not characterize the IRS action as “targeting.” Instead, he said it was “a renewed attempt” by the agency to collect additional taxes after failing in the earlier case.

An IRS spokesman said the agency does not comment on pending cases.