It’s Friday the 13th. Do you know where your extended 1041, 1065, 1120, or 1120-S is? They’re due Monday! If you have a pass-through return due, late filing penalties start at $195 per K-1. E-file, or use certified mail, return receipt requested. It makes for good luck if the IRS says you filed late.
Christopher Bergin, Tax Avoidance Just Isn’t What It Used To Be:
Setting aside for now the place of moral scruples in a tax rate, some are arguing that corporations have a higher duty to the countries where they do business and the citizens they sell to than simply paying the lowest amount of tax possible. That argument challenges other well-established theories, among them that corporations have a duty to maximize the investment of their shareholders. Well, is it the only duty of a multinational corporation to maximize value for its shareholders?
Well, it sure isn’t to maximize value for its tax collectors.
Jason Dinesen, Same-Sex Marriage and Minnesota Taxes. ”Effective with 2013 tax returns, same-sex married couples who file Minnesota tax returns will be required to file those returns as married.”
Phil Hodgen, Electing Resident Alien Status Under Section 7701(b)(4). ”This election is used by nonresident aliens who become residents of the United States after the middle of the year, and do not hold a green card.”
For federal income tax purposes, putting money in a 529 plan won’t result in a deduction (as it would with, say, an IRA). However, neither the earnings nor the distributions in 529 plans are taxable for federal income tax purposes.
I like Iowa’s Sec. 529 plan, College Savings Iowa. You get a deduction for contributions up to $3,045 per donor, per donee on your Iowa 1040; it works like a 6% negative load, and you get the usual federal Sec. 529 benefits too.
Russ Fox, Bankruptcy Trumps a Deemed Sale. California’s tax authorities don’t get to decide the tax implications of a bankruptcy by themselves.
Leslie Book, CDP: When is a Document Establishing Liability Received? (Procedurally Taxing)
TaxProf, The IRS Scandal, Day 127
Kay Bell, IRS investigations are baaaaack!
Jack Townsend, Swiss Bank Rahn & Bodmer Under DOJ Criminal Investigation
William McBride, “Red” China Taxes Capital Relatively Lightly (Tax Policy Blog)
Howard Gleckman, Eight in Ten U.S. Households Pay Social Security and Medicare Taxes. Yet those two programs are actuarial disasters, so they don’t even cover their benefits. Mr. Gleckman’s use of this as a defense of exempting them from all income taxes is unconvincing.
Robert D. Flach has your Friday Buzz roundup of tax news!
No, it’s about restricting guild membership to keep salaries up. Getting a PhD in Accounting Isn’t Really About Teaching (Going Concern)
News you can use. To Enjoy Driverless Cars, First Kill All the Lawyers (Megan McArdle)
Sometimes taxes aren’t the most interesting part of the story. Certainly not in a case reported by the Contra Costa Times about an attorney who apparently will plead guilty to tax charges:
Mary Nolan, 61, of Oakland, was indicted by a grand jury in September 2012 on six counts related to accusations that she failed to report $1.8 million in earnings to the Internal Revenue Service and placed eavesdropping equipment on the cars of her clients’ spouses with disgraced former Concord private investigator Christopher Butler. Court records show that she’s scheduled to enter a guilty plea before Judge Charles Breyer on Sept. 27, although no details as to her plea agreement have been made public.
Illegally bugging cars?
Nolan also is a defendant in two of the half-dozen civil lawsuits pending in state and federal court lodged by the targets of Butler’s “dirty DUI” stings in 2011 and 2012.
Butler’s employees, usually attractive women, would entice the estranged spouses of Butler’s clients to get drunk and drive, at which time Butler would encourage police to arrest the targets for DUI, giving his clients leverage in divorce and child-custody proceedings.
Nolan is accused of helping arrange the arrests of Concord aeronautics engineer Dave Dutcher and Clayton contractor Declan Woods, whose ex-wives, Susan Dutcher and Louise Woods, were represented by Nolan in family law court.
Somewhere a Mr. Dutcher and a Mr. Woods could be excused for enthusiastically toasting this turn of events alone and at home.
Tags: Christopher Bergin, Going Concern, Howard Gleckman, Jack Townsend, Jason Dinesen, Kay Bell, Leslie Book, megan mcardle, Phil Hodgen, Robert D Flach, Russ Fox, tax crime, Tax Justice Blog, TaxProf, William McBride