Don't File & You Could Owe a $175,000,000 Tax Debt Like Marcos Esparza Bofill

 A broke twenty-something hipster was hit with a $175,000,000 tax bill. When asked about his shocking tax debt he responds: 

"What's the IRS?"

Marcos Esparza Bofill emigrated to the United States from Spain to try his luck as a day-trader. He lost money while he was here and before he left he was barely surviving. If this is all true, how the hell could he owe the IRS $175 Million in tax debt?  

Here's the Deal:

-  Marcos Esparza Bofill did not file his taxes for the year he was living in New York

- The IRS followed every transaction he made, coming up with an annual income of $500 Million

- According to IRS documents posted on The Smoking Gun, Esparza owes $172,101,056.48 on his unfiled 2006 tax return.

Though friends are speaking out saying Esparza's modest apartment and lifestyle mean the debt is a big mistake, it's a little strange that a "broke hipster" has $500 million to trade in stock, isn't it?

"He lives a very modest life," an anonymous friend said of Esparza Bofill. "So just to think that all of a sudden he owes $172 million is pretty ridiculous."

File Your Taxes: When you don't file, the IRS will file an substitute return in a way that best benefits them. Why not, wouldn't you? This is especially dangerous if you're a day-trader, because the IRS will assume you've made 100% profit. The IRS filed Marcos Esparza Bofill's taxes as if he bought stock at no cost. 

Solutions for the $175,000,000 Debt: If Esparza Bofill is truly as broke as his friends claim, he should be able to wipe out his problem simply by filing his taxes for that year. If  his losses truly outweigh his profits there will be zero tax liability and no penalties or interest.