Tax Roundup, 6/25/2013: IRS says it was evil to lefties, too. And: RRTP > CPA?

June 25th, 2013 by Joe Kristan

20130419-1The IRS yesterday issued a new internal report showing that the hold-ups on Tea Party exemption applications continued until just now.  Tax Analysts reports ($link):

IRS Principal Deputy Commissioner Daniel Werfel told reporters that when he began his 30-day review of the agency’s mishandling of conservative groups’ exemption applications, he discovered that the exempt organizations unit was still using BOLO lists that included inappropriate or questionable criteria.

“BOLO” is “be on the lookout” lists looking for suspicious signs of political activity via the names of the organization.  These lists included “progressive” as a suspicious word, along with some right-side words, but it it appears that the left-side groups were not singled out for the “special” treatment accorded the Tea Party.

There is still a lot we don’t know about how the IRS treated the 501(c)(4) applications.  Unless we find out about left-side applications left to languish for years, like the Tea Party applications, it still doesn’t appear that IRS was evenhandedly evil.  And “they screwed some of us, too” isn’t exactly a ringing defense of the organization.

IRS, Charting a Path Forward at the IRS: Initial Assessment and Plan of Action

Kay Bell, IRS also was on the lookout for progressive tax-exempt groups

Linda Beale, To All Those Right-Wingers Complaining about IRS Targeting–guess what, they used “progressive” to help screen, too!

TaxProf, The IRS Scandal, Day 47

 

You can’t condition your conservation easement on it being deductible, says the Tax Court. (Graev, 140 T.C. No. 17).  $990,000 deduction fails.

Tony Nitti, Tax Court: Leasehold Interest Exchanged For Fee Interest In Real Estate Does Not Qualify For Section 1031 Treatment,  If your leasehold is less than 30 years, don’t expect it qualify in a swap for a fee interest in real estate.

Jana Luttenegger, Emergency Preparedness includes Safeguarding Records (Davis Brown Tax Law Blog).  “Have you thought about what records could be destroyed if a severe storm damaged your home or business?”

 

Tuesday Buzz from Robert D. FlachIt links to a new post on Robert’s “The Tax Professional” blog, where Robert asserts:

If a CPA were able to earn the designation of RTRP it would clearly identify that individual CPA as being competent and current in 1040 preparation.

False.  The now-dormant RTRP exam was a literacy test that proves tax competency in neither CPAs nor anyone else.  Robert is correct, though, when he says “A CPA is not automatically a 1040 expert, but a specific CPA may be a 1040 expert.”

I do think that CPAs who do tax work tend to be very capable, but so are many non-CPA preparers.  I think the competency curve would look something like this:

20110118-2.png

You should choose your tax preparer not just because of initials; you should find out what kind of work the preparer does.  And check references.

 

Russ Fox, FBAR Deadline Is Now.  If you haven’t sent in your FBAR, Russ shows how to e-file.

Austin John, Maryland Soon to Roll Out the Rain Tax (Tax Policy Blog)

Tax Justice Blog, Governor Cuomo, Meet Governor Brown.  “California Shows that Geographically Targeted Tax Incentives Don’t Work.”   Leave out “geographically” and it’s even better.

 

David Henderson, Atkinson and Krugman on Tax Rates (Econlog).

Jeremy Scott, Can the OECD Be Trusted on Base Erosion? (Tax Analysts)

TaxGrrrl, If It Ain’t About Money (Turns Out It Is): Rapper Fat Joe Headed To Prison For Failure To Pay Taxes

 

Breaking News from 2010:  Tax Return Fraud Spiraling Out of Control (Citizens Against Government Waste).  It’s ID theft fraud, of course.  Too bad Commissioner Shulman was busy regulating preparers and holding up 501(c)(4) applications.

Athletic ability has a weak correlation with financial ability.  Bankruptcy Rates Among Professional Athletes Need to Be Addressed (Jen Carrigan at Missouri Tax Guy)

 

 

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