Tax Roundup, 10/18/13: IRS is back, but the lines may be busy. Happy Fall Friday!

October 18th, 2013 by Joe Kristan

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The Tax Court had two weeks to work on it, and they issued no decisions yesterday.  Slackers.

So audits resume, notices come out again, and the IRS can resume giving 20%-accurate answers to taxpayer questions.  Some reports from the re-opening:

Kay Bell, IRS employees are back, but temporary shutdown deal could mean 2014 tax filing season trouble:

But I fear that come Jan. 16, we’ll be back in a federal government shutdown situation that could pop today’s celebratory grand federal facilities’ reopening balloon. 

And while a government shutdown, even a partial one, is a problem for almost every one at any time, it will be major hassle for millions of taxpayers in January.

That’s the month that that federal tax filing season begins.

Yet another reason to dread next tax season.

 

TaxGrrrl, IRS Asks Taxpayers For Patience As They Tackle Shutdown Backlog   

William Perez, The IRS is Open Again.

Howard Gleckman, One Modest Path to a No-Drama Budget Deal (TaxVox)

Tax Justice Blog, Shutdown Ends with Deal Creating Yet Another Budget Panel.  TJB wants them to just get on with another tax increase.

 

20120830-1Joseph Henchman, Elia Peterson, Oregon Changes Tax Structure for Most Businesses (Tax Policy Blog)

Driven by rhetoric about cutting taxes for small businesses but in reality just adding more complexity and non-neutrality to the tax code, these changes make Oregon the third state to adopt a special income tax system for pass-through businesses. Kansas offers a complete exclusion for all pass-through business income, resulting in a non-neutral situation where income from corporate profits is taxed twice, wage income is taxed once, and most small business is not taxed at all. Ohio has enacted a 50 percent exclusion for the first $250,000 of pass-through income, adding complexity to an already non-neutral carveout. Oregon’s is more transparently an effort to tax corporations while reducing tax burdens for some (but not all) pass-through entities.

The Tax Update’s Quick and Dirty Iowa Tax Reform Plan would repeal the corporate income tax altogether and allow S corporations the option of being treated as C corporations for Iowa purposes.

 

Jack Townsend,  Quiet Disclosures Increasingly on IRS’s Radar Screen.  He notes a Tax Analysts article ($link) that says the IRS is looking closely at taxpayers with foreign accounts who come in from the cold without going through “Offshore Voluntary Compliance Initiative.”

Brian Mahany, Lawyer Indicted For Estate Fraud And Tax Evasion

Keith Fogg, Erroneous Refund Case Reveals the Intersection of Bankruptcy and Tax Procedure (Procedurally Taxing). “The first thing that caught my eye here was the timing of the refund.  It was issued more than 14 years ago. ”

I almost forgot! Robert D. Flach has your Friday Buzz!

 

William McBride, JCT: Corporate Tax Falls Partly on Labor (Tax Policy Blog):

While this is progress, it does not in fact reflect the middle range of the current economic literature. At least since the 1990s, most economists have recognized that the burden of corporate taxes fall mainly on labor in the long run. 

You can’t tax the boss without taxing his employees.

 

 

Going Concern: This TaxMasters Video Is of the Devil.  It truly is.

Peter Reilly, Study Shows Taxpayers With Balance Due More Likely To Cheat.   The prospect of writing a check is apparently more of a motivator than the lure of a fraudulent refund.

News from the Profession: Michigan CPA Charged with Murdering Michigan CPA (Going Concern)

 

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Have a great weekend!

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