Needed: Extra Checks and Pens

Humorist Joe Queenan makes fun of an IRS instruction (see image right):

So if you owe more than $100 million in taxes, the IRS says to send in two or more checks, each for less than $100 million. Otherwise they’re going to return your check uncashed.

Like a lot of self-employed people, I lose track of my income. I earn an extra $45 million here, an extra $72 million there, but I forget to write it down. Then, come Tax Day: kerpowee!!

John Paulson supported Donald Trump, but the new
tax bill didn't help him at all. (UPI photo)

Joe wouldn't be so quick with his mockery if he knew that there are real people who are suffering with this problem.

John Paulson won fame after he made one of the greatest financial bets of all time. What comes next? One of the largest-ever personal tax bills.

By April 17, the hedge-fund manager must make federal and state tax payments of about $1 billion, on top of roughly $500 million in taxes he paid late last year, said people close to the firm.

Mr Paulson made $billions during the subprime crisis of 2008-2009 but has been able to defer most of the taxes to this year. Meanwhile his fortunes have turned.

he’s also not as flush as the heady days of 2008. In fact, after a string of poor results, a bad bet on pharmaceutical stocks and client defections, Mr. Paulson has been selling various investments to cover the bill. He’s also in the process of cutting costs and shrinking his firm, including laying off senior traders.

Seven years ago, Mr. Paulson was managing $38 billion and was firmly among Wall Street’s elite. Today, Paulson & Co. is managing under $9 billion—most of it Mr. Paulson’s own assets, said the people close to the firm. That’s one reason this particular IRS deadline stings.

Isn't it always the case? You have to cough up $1 billion at the most inconvenient time.

Meanwhile Mr. Paulson should make sure he's got extra checks and pens on hand.