The Clive City Council today is likely to reactivate its dormant red-light camera program, but only through June 30, 2014.
In his email, Weaver said it was necessary to reactivate the cameras to ensure the city’s financial health. But tonight’s vote, he wrote, will also set in motion the dismantling next year of the camera contract and of the city ordinance authorizing the use of red-light cameras in Clive.
Give them credit for being honest, at least, rather than insulting our intelligence by saying it’s about safety.
Chicago Congressmen’s wife gets 12 months on tax charges. At the same hearing where her husband, former Congressman Jesse Jackson Jr., received a 30-month prison term for using $750,000 in campaign funds to live the good life, Sandri Jackson received a 12-month sentence on related tax charges. Huffington Post reports:
Jackson’s wife, Sandra, was also sentenced Wednesday. She will serve one year in prison and was ordered to pay $22,000 in restitution, after pleading guilty to a related charge of filing false tax returns. U.S. District Court Judge Amy Berman Jackson, who is not related to the Jacksons, allowed the couple to stagger their sentences so their children would have at least one parent at all times. Jackson Jr. will go to prison first, followed by Sandra.
Jackson Jr. pleaded guilty in February to using campaign funds to purchase an array of personal items, including Bruce Lee memorabilia, a $43,000 Rolex watch and a mink cashmere cape.
A mink cashmere cape? Considering that the Congressman was elected as a Democrat in a district that hasn’t elected a Republican since the last mastodons moved out, I suppose he had to do something with the money. I’m glad he used it to build a modest and dignified wardrobe.
TaxGrrrl has more.
Missed your S corporation deadline? The IRS has issued a new Revenue Procedure that combines in one place relief late or missed elections related to S corporation status. From Revenue Procedure 2013-30, which takes effect September 30:
This revenue procedure expands and consolidates relief provisions included in prior revenue procedures that provide a simplified method for taxpayers to request relief for late S corporation elections, ESBT elections, QSST elections, QSub elections, and corporate classification elections intended to be effective on the same date as the S corporation election for the entity.
These relief provisions, which require no user fee, are a great friend to the taxpayer and the practitioner. Still, it unfortunately continues the “reasonable cause” requirement, usually requiring some advisor to take one for the team. Fortunately the IRS doesn’t seem to look at the reasonable cause disclosures very closely.
Speaking of S corporations: S Election For Cash Basis C Corporation Fraught With Peril (Peter Reilly). The accumulated accrual-to-cash benefit is a built-in gain, taxable to the coproration. From Peter’s post:
The only scenario I have been able to think of that might make it worthwhile to organize a professional practice as a C corporation is a sole practitioner who has the need to make very large out-of-pocket medical payments – a special school for a disabled child for example. That would make a medical reimbursement plan worthwhile.
And as Peter’s post illustrates, C corporations can be like lobster traps: easy to get into, difficult to live in, and painful to get out of. (apologies to Bittker and Eustice).
#Tax Justice Blog, ITEP to Legislators: Business Tax Breaks Don’t Live Up to the Hype. Of course they don’t. They only exist to allow politicians to call a press conference or cut a ribbon. From the post:
Among the reasons ITEP urged lawmakers to be skeptical of these special breaks:
- Tax incentives often reward companies for hiring decisions or investments they would have made anyway. These “windfall” benefits significantly reduce the cost-effectiveness of every tax incentive.
- State economies are closely interconnected, so the taxpayer dollars given to companies through incentive programs never remain in-state for very long.
- Tax incentives require picking winners and losers. Incentive-fueled growth at one business usually comes at the expense of losses at other businesses – including businesses located in the same state.
- Tax incentives must be paid for somehow, and state economies are likely to suffer if that means skimping on public services like education and infrastructure that are fundamental to a strong economy.
Exactly right. It’s like taking your wife’s purse to the bar for money to pick up girls. It’s not a great use of the money, the girls aren’t impressed, and any you get that way aren’t likely to be prizes.
Christopher Bergin, 15 Years of IRS Reform (Tax Analysts Blog):
Certainly, the IRS needs reforming, and has done some pretty bad stuff. That reform can come from within the agency or from lawmakers, but it needs to come from another place as well: a good place, a place of positive change not negative political expedience.
It’s hard to elicit “positive” thoughts for the IRS from legislators when it is clear that the agency was harassing their allies.
Kay Bell, Unemployed? You still could face tax issues. Unemployment comp is still taxable income.
Robert D. Flach, DEFENDING THE DEDUCTIONS FOR TAXES AND MORTGAGE INTEREST.
David Shakow, The Taxation of Cloud Computing and Digital Content. (Tax Analysts, via The TaxProf. The rise of software-as-a-service creates a lot of challenges for the tax man.
TaxProf, The IRS Scandal, Day 98.
Cara Griffith, California’s Aggressive Position on Passive Income (Tax Analysts Blog)
Jason Dinesen, Baseball and “Games Behind in the Loss Column” For us Cubs fans, it’s an exercise in large numbers.
TaxGrrrl, ‘Real Housewives’ Stars Plead Not Guilty As Bethenny Claims: I Don’t Feel Sorry For Them. In case that matters.
The Critical Question. What’s Getting a PhD in Accounting Really All About? (Going Concern). As far as I can tell, it’s about learning statistical techniques and writing things nobody will read over a long-enough time that you will forget any useful information you might have imparted to students from your pre-Ph.D career. More importantly, it’s about restricting the pool of tenure-eligible candidates to maintain the salaries of the guild members.
News you can use. E- Filing makes tax fraud easier (Myfoxhouston.com)
Tags: S corporation, tax crime, TaxProf, Kay Bell, Robert D Flach, Clive, red-light cameras, Christopher Bergin, TaxGrrrl, Huffington Post, Peter Reilly, revenue cameras, Jason Dinesen, The Critical Question, Cara Griffith, Tax Justice Blog, David Shakow