Mitt Romney filed his extended return on Friday. In addition to remininding us laggards that the extension season will end three weeks from today, it shows us that the Republican nominee has a lot of money. Who knew?
The strangest item may the candidate’s voluntary walking away from a charitable contribution deduction. He did that to ensure the “effective rate” on his adjusted gross income was at least 13%. Of course, he has three years to change his mind and amend his return.
The return has one thing in common with the Obama 1040s: self-employment income. While the Obamas began taking retirement plan contributions based on that income, perhaps because they secretly read the Tax Update, the Romneys do not. They could still set up a SEP plan, amend their returns, and take a 2011 deduction against his director fee income. They may be too busy for that right now, but if you have an extended return with self-employment income, it’s not too late for you!
The campaign also issued a letter from PWC summarizing his taxes over the past 20 years, debunking the foolish innuendo that Harry Reid peddled that Romney had zero-tax years.
The TaxProf has a Romney return roundup. More coverage:
Robert D. Flach, WHOOP-DE-DOO! ROMNEY RELEASED HIS 2011 RETURN!
Related: TaxGrrrl, Ryan’s Amended Returns Offer More Questions Than Answers
Meanwhile, in news that matters: Sweden to Lower their Corporate Rate to 22 Percent, 18 Points below Ours (William McBride, Tax Policy Blog).
More coverage of the Iowa guy who filed as a South Dakota resident: Linda Beale, Tax Home–where the heart is, but not necessarily where the taxes are lowest and Russ Fox, Home Is Where the Family Is.
Jack Townsend, Restitution in Tax Cases
Jason Dinesen, “Consumer Reports” Highlights Identity Theft
Jim Maule, Raising the Tax Shame Noise Level
And it wouldn’t be a weekend without a new Buzz from Robert D. Flach.
Quote of the day:
Wind energy tax credits, like all government-sponsored tax incentives, don’t work. They violate every principle of sound tax policy. The wind tax incentives place the risks on the public and promise the rewards to a chosen few. As the insurance company ad said, even a caveman could see that. Nevertheless, there is a bipartisan crescendo building to ensure the wind energy suppliers continue to receive their credits. (David Brunori, Tax Analysts (subscriber link))
Tags: Jim Maule, Kay Bell, Russ Fox, David Brunori, Janet Novack, Robert D Flach, Linda Beale, TaxGrrrl, Martin Sullivan, Going Concern, Peter Reilly, Mitt Romney, Jason Dinesen, Anthony Nitti, Nanette Byrnes