States with umbrellas. The Tax Foundation’s map this week shows how well the states are doing at maintaining “rainy day funds.” Iowa does pretty well.
Some states don’t bother. Unsurprisingly, Illinois is one of them. (Richard Borean, Tax Policy Blog)
The IRS has good advice in Tips for Employers Who Outsource Payroll Duties issued yesterday. Many employers have had to pay their payroll taxes twice after unscrupulous payroll providers have made off with their funds. Two tips worth repeating:
Enroll in the Electronic Federal Tax Payment System and make sure the PSP or RA uses EFTPS to make tax deposits. Available free from the Treasury Department, EFTPS gives employers safe and easy online access to their payment history when deposits are made under their Employer Identification Number, enabling them to monitor whether their third-party payer is properly carrying out their tax deposit responsibilities…
Refrain from substituting the third-party’s address for the employer’s address. Though employers are allowed to and have the option of making or agreeing to such a change, the IRS recommends that employer’s continue to use their own address as the address on record with the tax agency. Doing so ensures that the employer will continue to receive bills, notices and other account-related correspondence from the IRS.
Remember that if you are using a “professional employer organization,” you may not be able to monitor whether your payments are being made through EFTPS, making it critical to ensure the PEO’s trustworthiness in other ways. Nobody wants to pay their payroll taxes twice.
TaxGrrrl, As Debate Into Tax Exempt Scandal Continues, Here’s A Timeline Of Who Knew What And When. “While it feels like this has all happened over a short period of time since the issue has only been in the spotlight for a few months, it’s actually taken us years to get to this point.”
TaxProf, The IRS Scandal, Day 68
Lawyers, guns and money? When Earn-Outs Go Wrong: What Options Does A Seller Have When A Contingent Purchase Price Is Never Paid? (Tony Nitti)
Peter Reilly, Fee Interest In Motels Not Like-kind To Leasehold
Keilly Strohmaier, (via Paul Neiffer), Watch Out For Disregarded Entities When Someone Dies
Clint Stratch, 15,000 Poor Reasons to Do Tax Reform (Tax Analysts Blog):
Tax reform advocates say that because “Congress has made more than 15,000 changes to the tax code” since 1986, the code needs to be reformed. At first blush, this number leaves a pretty poor impression not just of the code but also of Congress. An alternative view could be that succeeding Congresses have been about continually improving the
An alternative view could be that drinking a half-pint of bourbon for breakfast would make me a better accountant. And that might be true if I were already in the habit of starting the day with a whole pint.
William Perez, Death Tax Repeal Act of 2013 Introduced in House and Sentate
Donald Marron, The Fed and America’s Debt (TaxVox)
Jeremy Scott, Noem, Schweitzer Decisions Give Shape to Key Senate Races (Tax Analysts Blog)
Jack Townsend, Taxes and Morality. Turns out that a lot more people think tax cheating is sinful than, say, binge drinking.
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Tags: TaxProf, Kay Bell, Robert D Flach, William Perez, TaxGrrrl, EFTPS, Jack Townsend, Donald Marron., Peter Reilly, Jason Dinesen, Anthony Nitti, Jeremy Scott, Clint Stretch, Richard Borean, Kelly Strohmaier