Quoted from the article:
"Vanguard might be able to use its influence and power to get exceptions written into the law to protect its own interest the same way the sugar lobby (and one family down in Florida, particularly) has been able to artificially control cane sugar due to buying politicians and regulators. The investors of Vanguard will continue to benefit from expense ratios that they now know come at the expense of cheating. People who don’t pay attention will have no idea something happened at all. Newsweek, in writing about the Vanguard fraud allegations, mentioned that if the firm managed to pull it off, it would be the 30th exemption granted; a special exception that allowed it to follow different rules from everybody else...
The IRS settles with Vanguard, most likely for a much lower amount coupled with changes in the internal transfer-pricing practices, which will require a drastic increase in expense ratios over their present levels. At this point, one of two things should happen given Vanguard’s mission to put its investors first:
Vanguard will need to implement an owner dividend policy that results in regular distributions of the now-higher profits that are properly recognized. As previously discussed, this might mean someone who has a lot of money in an S&P 500 index fund wakes up to find himself paying an expense ratio of, say, 0.80% per annum, but on the receiving end of a large check each Christmas based on his or her relative share of total assets under management or some other allocation formula."
Much ado about nothing - I agree with the above, either Vanguard investors will pay their share of corporate tax and get a refund of "dividends" or Vanguard will work out an exemption with the government - the company has too much goodwill with the public for any regulatory agency/gov to mess with it