Tax Roundup, 12/17/2013: Map day! A B+ for Iowa tax administration.

December 17th, 2013 by Joe Kristan

I did my last session of the year yesterday for the ISU-CALT tax school in Ames, and I have much catching up to do today in the office.  It’s a two-day school, and today Paul Neiffer is on the Day 2 team at the Ames Tax School.

 

Ben Harris, The US Income Tax Burden, County by County (TaxVox):

While the median federal income tax burden across counties is about $3,400, approximately 10 percent of counties  have average tax burdens less than $2,100 and around 10 percent of counties have  average tax burdens over $6,700.

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I think the right side of the little color key is supposed to read $7,000, not $70,000.  Unless Central Iowa has higher income than I thought, anyway.

 

Meanwhile, Joseph Henchman reports that the Council on State Taxation graded the states on “taxpayer administration,” with this map (Tax Poliy Blog):

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Iowa gets a B+:

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I think they are grading on a curve.  And Iowa gets credits for making rulings and decisions available; that hasn’t been done since August, at least not on the Iowa Department of Revenue website.

 

Jeremy Scott, IRS Moves Closer to Having a Commissioner (Tax Analysts Blog).  How novel.

O. Kay Henderson,  Energy execs say end of federal credit to curb wind energy expansion.  When something can’t happen without subsidies, that’s nature’s way of saying it shouldn’t happen.

Jason Dinesen, Will Same-Sex Married Couples Pay More or Less in Taxes Now?  “I answer by saying that the answer is: ‘yes, no, maybe.’”

 

Leslie Book, Omitted Income, Accuracy-Related Penalties and Reasonable Cause (Procedurally Taxing).  He talks about the case I discussed here, saying:

Sometimes when I read penalty cases involving individuals I am struck by how the penalties are inappropriate. Here, I understand why IRS counsel stuck to its guns and tried the case, but I also agree with the court’s conclusion on these facts. I suspect that very few taxpayers leaving off this amount of income would get relief from the penalties, though wonder if the IRM should extend the first time abatement relief to penalties other than failure to file or failure to pay, so that perhaps Counsel or Appeals will feel more comfortable in exercising discretion if there are facts suggestive of an isolated and understandable mistake.

IRS is much too quick to assess foot-fault penalties on taxpayers with a good compliance history.

 

William Perez, IRA Distributions at Year End:

Taxpayers who are age 70.5 or older are required to distribute at least a minimum amount from their traditional IRAs, 401(k) plans and similar pre-tax savings plans. These required minimum distributions must begin no later than April 1st after the reaching age seventy and a half. Individuals continue taking required minimum distributions each year. So the first year-end tactic is to figure out how much needs to be distributed from the retirement plan to satisfy the required minimum distribution rules.

Basic, but missed surprisingly often.

 

Tony Nitti,  IRS Issues Guidance On Employee Benefit Plans For Same-Sex Couples

Russ Fox,  Health Care Fraud Leads to Tax Charge

Kay Bell, Medical tax breaks’ 10% and FSA year-end considerations

TaxGrrrl has kicked off her “12 Days of Charitable Giving 2013.”  Today she highlights Children Of Fallen Patriots 

TaxProf,  The IRS Scandal, Day 222

 

Grab a Tuesday Buzz from Robert D. Flach!

News From the Profession.  Accounting Firm Busted Stealing From the Cloud in “Plain, Vanilla Dispute About a Customer List” (Going Concern)

 

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