Tax Roundup, 3/29/2013: Gang truce edition. And: do you know where your children are?

March 29th, 2013 by Joe Kristan
Via Wikipedia

Via Wikipedia

Few of us would encourage criminal gangs to work out their disagreements so they could be more effective criminals.  Yet many well-meaning folks think it’s a good idea for politicians to be “bipartisan.”  That can be the public policy equivalent of a gang truce.  Remember that the disastrous Iowa Film Credit enjoyed wide and bipartisan support.

Now they’ve reached across the aisle at the state house to take more money out of our pockets for the benefit of the well-connected and well-lobbied.  From Radio Iowa:

Key lawmakers from both political parties say it’s likely the Iowa legislature will boost the amount of state tax credits available to lure new businesses to Iowa.

This year state officials can offer a total of $120 million in state tax credits for a variety of business expansion projects. Lawmakers appear poised to raise that to $185 million for next year.

Isn’t that wonderful.  Taking money from the people who already pay taxes at some of the highest rates in the country to lure and subsidize their competitors.  Well done, guys.  It’s like bringing your wife’s purse to the bar to buy drinks for the girls.  It’s not impressive. They may take the free drinks, but they realize you’ll raid their purses if you get the chance.  And any girl you do get that way probably isn’t a real prize.

WCFCourier.com says there is also bipartisan agreement to enrich the historic tax credit program, which allocates construction capital to well-connected local developers at the expense of their non-subsidized competition.

 

Kay Bell,  Some seniors face April 1 retirement plan withdrawal deadline. “April 1 is the deadline for some folks age 70½ to take money out of their tax-deferred retirement accounts.”

TaxGrrrl,  Withdrawal Deadlines Looming For Some Retirement Plan Owners

 

Brian Mahany, Former CPA Gets 3.5 Years in Prison, $100 Million Restitution For Tax Evasion Role

Jack Townsend,  More thoughts on Lawyer’s Behavior — Ethics and Criminality

Joseph Henchman,  New York’s Highest Court Upholds “Amazon Tax” Against Facial Challenge (Tax Policy Blog)

Russ Fox,  DC Circuit Upholds Injunction on Preparer Regulation

 

Jim Maule, Taxing Damages.  If you sue a car dealer for bait-and-switch and get a settlement, it’s taxable.

Patrick Temple-West,  Sports betting raises state coffers, and more  (Tax Break)

Howard Gleckman,  Is This a Good Time to Reform the Mortgage Interest Deduction? (TaxVox)

 

Peter Reilly,  Let’s Have Judge Judy Tell Us How Old The Earth Is

Thanks to sequestration, they can’t afford to run the washing machine.  The IRS is Airing its Dirty Laundry  (Jana Luttenegger, Davis Brown Tax Law Blog).

Today’s career tip: When Stealing From Your Company, Be Sure To Charge Boss’s Birthday Party To Your Personal Account (Going Concern)

 

Details, details.  Details matter when you claim a childcare tax credit on your Iowa return.  Like, for example, the address of your child care provider from a denial of an Iowa tax protest released today

The Department reviewed your 2009 Iowa individual income tax return and denied the child care credit.  Your protest claims you provided adequate documentation to support the credit.  After our review, our position is that we believe Form 2441, the tax form for child care expenses, is fraudulent.  The owner/occupant at the address reported as that of the provider stated he does not know and has never heard of [your child] and there has never been any child care business operating at his property.  It is unreasonable that you would not know the address of where your children are while you are at work.  Therefore, your protest is denied.

In fairness, my parents often had no idea where I really was when they were at work…

 

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