Field of bad dreams. TheFiscalTimes.com says Iowa is the ninth worst state for taxes:
The Hawkeye State gets a black eye for being the second worst state for corporate taxes, with a 12 percent rate. It also ranks 37th in property taxes, 33rd in individual income taxes and 34th in unemployment insurance taxes.
State leaders ballyhooed the plan as a way of moving from old-style industry to new.
Despite tens of millions of dollars in state investment, the promised 3,000-plus jobs didn’t appear. As the Detroit Free Press reported last year, the studio employed only 15-20 people. That isn’t boffo. That’s a bust. The studio has defaulted on interest payments on state-issued bonds, and the guarantors—the state’s already stressed pension funds—may wind up holding the bag. “In retrospect, it was a mistake,” conceded Robert Kleine, the former state treasurer who signed off on the plans in 2010.
Iowa ended its motion-picture subsidies in 2010, after officials misused $26 million in state money, leading to criminal charges. According to a 2008 investigation by Iowa Auditor David Vaudt, 80% of tax credits issued under the state’s film-subsidy program had been issued improperly (to production companies that weren’t even spending the money in Iowa, for example).
“At a minimum, it’s probably going to take longer for people to get through on the phone; it’s going to take longer for refunds to be processed,” said Floyd Williams, a senior tax counsel at Public Strategies Washington.
Williams, who worked for the IRS for nearly two decades and directed the agency’s legislative affairs office for 16 years, says the sequester could also be a boon to those who purposely commit fraud, or accidentally fill out returns incorrectly.
Preparers gone bad. Accounting Today rounds up the week in preparer fraud, including a guy in New Mexico who, while serving time for identity theft-related charges, has been hit with 56 counts of fraud and embezzlement. That would be overachieving in underachieving.
Hak Ghun will travel. To Club Fed. From DurangoHerald.com:
Durango man pleaded guilty to tax evasion this week in federal court in New Mexico.
Hak Ghun, 62, is facing 12 to 18 months in prison after signing a plea agreement with the U.S. Attorney’s Office. He also will be required to pay $249,567 in restitution to the Internal Revenue Service.
The man was accused of embezzling from a company that had received investments from the Navajo Nation. For those who don’t get the old TV show reference, here you go.
Paul Neiffer, Safe to File After March 1
If a fire is worth fighting, it’s worth fighting in style. But the firefighter still can’t deduct the Benz. My new post at IowaBiz.com, the Des Moines Business Record blog for entrepreneurs.
Janet Novack, The Forbes 2013 Tax Guide
Jim Maule, Tax Law Provision Enforceable Even if Unwise. That would be most of them. For example…
…Tax Effects of the Health Care Act (Missouri Tax Guy)
Patrick Temple-West, Payroll tax’s return hits retailers, and more (Tax Break)
These guys are what I call real public servants. Vigilantes fighting revenue-driven traffic enforcement (The Telegraph, London).
Today’s Going Concern employment tip: Accountant on Probation for Embezzlement Still More Employable Than the Average Non-Accountant (Temporarily)
Tags: Antarctica., corporate welfare, economic development, film credits, Freakonomics, Glenn Reynolds, Going Concern, harold hill, Instapundit, Janet Novack, Kay Bell, maule, Missouri Tax Guy, Patrick Temple-West, Peter Reilly, Politico, preparer regulation, sequestration, tax administration, tax crime