Posts Tagged ‘Carnival of Taxes’

Tax Roundup, 2/4/14: Sometimes the tax crime isn’t the worst crime. And the Carnival moves on.

Tuesday, February 4th, 2014 by Joe Kristan

WashingtonRule 23 of George Washington’s Rules of Civility has a lot going for it:

When you see a Crime punished, you may be inwardly Pleased; but always show Pity to the Suffering Offender.

Yet even the Father of His Country might have had a hard time suppressing a smile over a federal tax sentencing in California yesterday.  From the Contra Costa Times:

A former San Ramon family law attorney was sentenced to two years in prison Monday for evading taxes and illegally eavesdropping on a client’s estranged spouse with the help of a now-incarcerated private investigator who set up divorcing men for drunken-driving arrests.

Mary Nolan, 62, of Oakland, already relinquished her law license and paid $469,000 in back taxes Sept. 27 after she pleaded guilty to four counts of tax evasion and one count of illegal eavesdropping.

Nolan represented the ex-wives of two men who were arrested after [the private investigator’s] attractive female employees lured them into drinking and driving. Those convictions were expunged after the scheme became known in 2011, when Butler and jailed former Contra Costa Narcotics Enforcement Team Commander Norman Wielsch were caught selling drug evidence and admitted to pimping and robbery, among other crimes.

Oddly, the sentencing judge not only failed to impose the 33-month sentence requested by the prosecution, but he also seemed to think the tax charge was more serious than the honey-trap thing, reports Concord Patch:

Breyer told Nolan during the sentencing today, “To eavesdrop on conversations that clearly weren’t intended for an adversary to hear is a
very unfair thing to do.”

But he said he was especially concerned about the failure of Nolan, as a lawyer, to pay the taxes due.

“What I find most troubling is the fact that you were a lawyer. Lawyers have that special responsibility not just to know the law but to follow it,” he told Nolan.

Yes, evading $400,000 of taxes is a bad thing, whether or not you are a lawyer.  Still, ruining lives setting up and framing people to win divorce cases strikes me as worse than making the IRS work hard for its money.   Maybe when you’re a federal judge, things start to look a bit funny.

 

 

Lois Lerner, ex-IRS, ex-FEC

Lois Lerner, ex-IRS, ex-FEC

Well, technically “a bunch” isn’t “a smidgeon.”   ‘Not Even a Smidgeon of Corruption’ at IRS, Obama Says.  (Tax Analysts, $link).   If so, it sure is funny how Lois Lerner was so quick to invoke her 5th amendment right against self-incrimination.  

Clint Stretch, Dumb Mistakes Aren’t Crimes.  (Tax Analysts Blog)  He says “IRS employees will not knowingly do someone’s political bidding.”  History shows otherwise.

 

 

TaxProf, OMB: EITC Is 4th Most Error-Prone Federal Program, With 22.7% Error Rate.  If it makes you feel better, the three worse ones are all Medicaid or Medicare.  Makes you want the government and IRS to pay in a bigger role in health care, for sure.

 

Minnesota:  Come for lovely winter weather, and stay for the annual tax hit!  The Minnesota Center for Fiscal Excellence has computed the annual cost for a high-earning individual of life in the tundra.  It’s not cheap:

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Of course, beautiful Iowa doesn’t have a lot to crow about, as it looks good only by comparison with Minnesota.  While the hypothetical taxpayer could only buy a nice new sedan annually for the savings of moving from Minnesota to Des Moines, she could buy some really nice wheels every year with a move to Sioux Falls.

 

Tony Nitti, Tax Geek Tuesday: Reasonable Compensation In The S Corporation Arena:

The IRS Fact Sheet provides “The amount of the compensation will never exceed the amount received by the shareholder either directly or indirectly. However, if cash or property…did go to the shareholder…the level of salary must be reasonable and appropriate.”  This language would seem to indicate that there is no requirement that compensation be paid to a shareholder-employee provided the shareholder also foregoes distributions. Even with that bit of guidance from the IRS, it is prudent advice to encourage a profitable S corporation to start making reasonable salary payments to its shareholder-employees as soon as it has the means to do so.

Unfortunately, the IRS has shown that it will attempt to force a salary even when the means are lacking.

Paul Neiffer, You Can File Income Tax Returns Now (Maybe)

 

Jeremy Scott, Making Tax Reform a Partisan Issue (Tax Analysts Blog):

And it isn’t hard to see why. Linking tax reform to the debt ceiling risks making it a partisan issue. Forcing Congress to take up reform is a GOP victory, because it causes Democrats to give up on a clean bill. So Democrats, many of whom are sympathetic to the tax reform process, will have to oppose tax changes because Republicans have politicized the debate, defining tax reform as a win for their side.

Ah, the majesty of government.

 

Lyman Stone, New Study: High Excise Taxes Drive Cigarette Smuggling in Boston, New York, Providence (Tax Policy Blog).  That has to be the most predictable news of the day.

Sad news from Kay Bell “The time has come, however, to put the Tax Carnival on hiatus.”  It’s a lot of work to put one together.  Thanks, Kay, for all of the help you’ve given tax bloggers over the years with the Carnival of Taxes.  So until she feels like reopening the Carnival, let’s have one last ride on the Midway.

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Going Concern, Here Is a Short List of People Less Deserving of Bonuses Than IRS Employees.  Hard to argue with the list, especially the first two, but I would throw in the other branches as well.

 

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Tax Roundup, 1/7/2014: Koskinen proposes voluntary IRS preparer certification. And: Obamacare, small business incubator?

Tuesday, January 7th, 2014 by Joe Kristan
This Koskinen isn't the IRS commissioner

This Koskinen isn’t the IRS commissioner

The new IRS Commissioner, John Koskinen, would like for IRS to oversee a voluntary preparer certification program if their preparer regulation power grab fails in the courts, reports Accounting Today. But he would still prefer the power grab:

“If you could require certification of preparers and some educational requirements, it would help taxpayers feel some level of confidence that preparers actually know what they’re doing, and the vast majority of them do,” Koskinen said during a conference call with reporters after he was sworn in ceremonially Monday by Treasury Secretary Jack Lew with an audience of many IRS employees in attendance. “My sense is that we should be able to provide that same educational training and that background to preparers. If you can’t require it, offer it, and if you complete the information, you get a certificate that says, ‘I have completed the IRS preparer course.’ I think that could be over time very valuable to preparers, and consumers could ask preparers, ‘Have you gone through the IRS training?’ Whatever happens with the court case, we ought to be able to move forward on that and provide taxpayers with as much assurance as we can that the preparers they are dealing with have met some kind of minimum standards.”

Somebody should point out to him that there already is such a program: the Enrolled Agent Program.  If the IRS runs the now-mothballed Registered Tax Return Preparer literacy test as a voluntary program, it will be a crippling blow to the more rigorous and underappreciated EA designation. Before he worries more about the competence of preparers, Commissioner Koskinen should fix his agency first (my emphasis):

“When I look at the impact of the budget and the implications of further cuts or what happens the next time there’s a sequester, the first thing that happens is the waiting time on a phone call goes up and our service goes down,” he said. “We try to get to 70 or 80 percent, but sometimes it gets as low as 50 or 60, which means at 50 percent that half the people who are calling are getting no answer at all and no satisfaction. It just seems to me that’s intolerable. Taxpayers deserve better, so we need to do whatever we can to provide the services that taxpayers need and expect. They ought to be able to dial the IRS number and get an answer promptly, and they ought to be able to get accurate information.”

Even the shabbiest storefront preparer at least processes more than half of its customers.

 

Why Iowa income tax reform will go nowhere this yearvia the Sioux City Journal:

Senate Democratic Leader Mike Gronstal, D-Council Bluffs, said Senate Democrats would formulate a tax-relief approach geared toward income tax cuts for middle-class Iowans, not the two-tiered plan being pushed by Republicans.

“Nobody in my caucus is going to go along with a scheme that leaves middle-class Iowans carrying more than their share of the tax burden in Iowa so rich people can choose whichever one works the best for them,” Gronstal said.

The idea that the state income tax system is somehow a way to fight The Rich Guy is willfully dumb, with zero-income-tax South Dakota right next door.  Oh, and you know what another word for “the rich” is?  Employers. 

Source: The Tax Foundation

Source: The Tax Foundation

 

Megan McCardle poses the question “Will Obamacare Inspire Small-Business Ownership?“:

One theorized benefit of the Patient Protection and Affordable Care Act is that it will unleash a new era of entrepreneurship. Undoubtedly, there are people in the U.S. who wanted to start a business but feared losing their health insurance. Now that they know they can buy it, presumably they’ll be freed to take risks without fearing that they could end up uninsured and uninsurable.

Unfortunately, we just don’t have that much empirical evidence. European nations with more generous social safety nets have lower rates of entrepreneurship than the U.S. does, even though a thought experiment might suggest that generous welfare programs would encourage people to take more risks. Nor did we see a radical unfurling of entrepreneurial energy in Massachusetts after RomneyCare.

She also points out that Obamacare is a kick in the head for businesses that actually succeed:

Meanwhile, of course, the law imposes significant new penalties for growing a company; anyone with more than 50 employees not only has to provide health insurance for their employees, but they also have to meet a substantial regulatory burden to demonstrate that they’re providing affordable coverage. That might discourage people from growing their firms. 

You know, it just might.

 

Russ Fox, Your Mileage Log — Start It Now (2014 Version).  You would not believe how much it helps in an IRS exam.  And doing it retrospectively when the IRS exam notice arrives tends to go badly.

Peter Reilly, Post Divorce Tax Intimacy Can Be Riskier Than Post Divorce Sex   Ewww…

Paul Neiffer, Roger’s Top Ten. “Roger McEowen from Iowa State University and their Center for Agricultural Law and Taxation (CALT) just listed his Top 10 Ag Law and Taxation Developments for 2014.”

William Perez, Resources for Preparing and Filing Form W-2 for Small Businesses

Robert D. Flach tells us WHAT’S NEW FOR NJ STATE TAXES FOR 2013

Kay Bell, Tax Carnival #124: Happy New Tax Year 2014

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Martin Sullivan, Goodbye Baucus, Hello Wyden (Tax Analysts Blog): “On tax reform the current chair of the Senate Finance Committee has been a laggard. Wyden will be a leader.”

Jeremy Scott, A To-Do List for Wyden (Tax Analysts Blog).  Tax Reform, Extenders, and the Tea Party investigation.

TaxProf, The IRS Scandal, Day 243

 

Joseph Henchman, Parking and Transit Benefits Tax Exclusion Parity Expires Again; Congress Should Consider Permanent Fix.  (Tax Policy Blog).  “The tax code is probably the wrong place to be subsidizing commuters, and the entire provision ought to be eliminated. If Congress wishes to retain it, it ought to consider a non-expiring unified exclusion of all transportation commuting expenses.”

Tax Justice Blog, Corporate Income Tax Repeal Is Not a Serious Proposal.  Stawmen go up in flames.

Ben Harris, Rethinking Homeownership Subsidies (TaxVox).  He wants to revamp them.  I’d prefer to get rid of them.

 

TaxGrrrl, Cracker Barrel Waitress Serves Up Happiness, Gets Tip & More .  $6,000 more.

The Critical Question: Is College That Guy on eBay Who Never Paid For the Crap You Sent Him? (Going Concern)

 

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Tax Roundup, 4/2/2013: Your corporate welfare is my wise economic development incentive. And what’s a vampire, anyway?

Tuesday, April 2nd, 2013 by Joe Kristan

20130117-1Not your corporate welfare.  Just ours.  Iowa Senate taxwriters have been eloquent in criticizing the corporate welfare famously doled out to fertilizer companies over the last year.  It turns out, though, that not all corporate welfare is bad, to them.  Just that proposed by the other party.  The Senate Ways and Means Committee advanced a set of its own welfare programs yesterday, including:

SF 238, which would provide a 30% tax credit (subsidy) “for persons who construct, install, and place in service an electric vehicle facility or a natural gas vehicle facility.”  So if you buy a Chevy Volt, Senate Ways and Means wants to pay 30% of the cost of installing special plug-ins.

SSB 1240, which “increases to $50 million from $45 million the amount of historic preservation and cultural and entertainment district tax credits.”  These are a cash cow for well-connected developers and rehabbers.

SF 205, which opens up an existing program to divert withheld employee taxes “to create economic incentives that can be directed towards business.”  The bill “removes the requirement that an employer…be located in an urban renewal area.”  In other words, it makes it just another “incentive” slush fund to pay people to be our friends.

So it’s not a principled opposition to business subsidies.  They just want different ones.

Far better to get the state out of the subsidy business and make the tax system good for everyone — not just those with the pull and the consultants to game the system.  Far better to enact The Tax Update’s Quick and Dirty Iowa Tax Reform Plan.

Related:  New Jersey corporate tax breaks surge, but economy lags: study

 

The courts haven’t been kind to the IRS preparer regulation power grab, but some preparers welcome our new preparer regulation overlords.  An example is Three reasons why the IRS will persist in its mission to regulate tax return preparers (Jim Buttonow)

The article takes for granted that the costs the regulations will impose will exceed the benefits:

Knowledgeable  tax return preparers—who are reminded each year through education requirements to  conduct effective due diligence on small businesses—can have a much greater  impact on compliance than IRS auditors.

That makes an unwarranted assumption: that the IRS can create “knowledgeable tax return preparers.”  It can’t.  It can make people fill out paperwork, go through the motions of paying for CPE, and take meaningless open book literacy competency tests, but it can’t make anybody competent.

The IRS has limited resources.  Semi-literate South Florida grifters are stealing billions through fraudulent refunds.  Yet the IRS seems to think its problem is honest preparers.

 

Smoke ‘em if you can afford ‘em. Monday Map: State Cigarette Tax Rates, 2013 (Nick Kasprak, Tax Policy Blog).

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Ben Harris, Hiking Dividend Taxes to Pay for a Corporate Rate Cut (TaxVox):

Finland will lower the corporate rate to 20 percent in 2014, down from the current rate of 24.5 percent (and 26.0 percent in 2011)…

Finland plans to pay for part of the rate cut by boosting the effective investor tax rate on dividends paid by companies listed on the Finnish stock exchange.

Why not instead create a full dividends-paid deduction.  It would eliminate the need for a rate preference for dividend inocme while eliminating the destructive double-tax on corproate earnings.

 

Russ Fox,  Bozo Tax Tip #9: Foreign Trusts

Paul Neiffer,  The Two Week Check List

Missouri Tax Guy,  Residential Energy Tax Credits 2012

William Perez,  Tips for SEP-IRA Contributions

 

Kay Bell, Tax Carnival #115: Final filing crunch 2013

Jeremy Scott, Tim Johnson, Kristi Noem, and the Importance of Moderates to Tax Reform (Tax.com)

The Myth of Crumbling Highways (David Hartgen).  A useful counterpoint to the construction interests lobbying for higher gas taxes.

Peter Reilly, Taxpayer Beats Idaho On Domicile But Loses On Community Property

 

Going Concern had fun yesterday for April Fools day.  This one puzzled me, though: Twilight Remake to Feature Auditors Instead of Vampires.  Isn’t that like saying the Daytona 500 will feature automobiles instead of cars?

 

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Tax Roundup, 8/9/12: IRS scolded for carelessly issuing ID numbers. Plus stupid vs. criminal, hitting bottom and digging.

Thursday, August 9th, 2012 by Joe Kristan

IRS Commissioner Douglas Shulman

IRS discouraged fraud detection in ID program (Huffington Post):

The Internal Revenue Service has been looking the other way instead of rooting out fraud when people apply for taxpayer identification numbers, Treasury Department investigators said Wednesday, exposing a shortfall with both financial and national security implications.

A member of Congress who sits on the House’s tax-writing committee responded to the report by calling on IRS Commissioner Douglas Shulman to resign, claiming the IRS is helping illegal immigrants defraud the government.

He wants the Commissioner to resign for that?  Considering that the Commissioner oversees the mailing of $5 billion annually to thieves, that he has terrorized and financially ruined otherwise law abiding Americans for footfault paperwork violations, and that he has, with questionable authority, imposed an expensive and futile preparer regulation scheme, this new outrage needs to take a number.

More coverage from the Wall Street Journal, Linda Beale and the TaxProf; read the TIGTA report here and a TIGTA press release here.

Instapundit on state film tax credits:

REPEAL THE HOLLYWOOD TAX CUTS!  (LOCAL EDITION):  La. film tax break program needs limits, budget group says.   “Louisiana has spent more than $1 billion over the past decade to attract movie productions to the state, but hasn’t received much in return besides the prestige of hosting big-name Hollywood actors, according to a report released today.  The left-leaning Louisiana Budget Project suggests state lawmakers should put tighter limits on the generous film tax break program, lessening the credits offered and capping the amount of money it can cost the state each year.”  Actually, it should be abolished, as should similar programs in almost every other state.  And this is something state Tea Party groups might even make common cause with lefties on.

A sadder-but-wiser Iowa repealed its version of the film credits this year after it collapsed in scandal and disgrace and the State Auditor reported that 80% of the credits were issued improperly or lacked documentation.  But in defense of the program, two filmmakers are moving to Iowa for up to ten years thanks to the film tax credit!

It’s time to register for this year’s ISU Center for Agricultural law and Taxation Farm Tax Schools!  I will be on the Day 1 panel at all eight sessions, starting with the October 29 school in Mason City.

We’re vacationing in the mountains this year, kids. The Plot Thickens for Swiss Bankers Involved In U.S. Evasion: (Jack Townsend):

Swiss bankers whose names were delivered to the United States in April as part of the crackdown on US tax evaders face the risk of arrest while travelling in some European countries, not just on US soil.

Well, the Alps are nice…

Stupidity is no crime: Were Reid’s Remarks About Romney’s Returns Unlawful? (TaxGrrrl)

We’re just getting started!  Have We Reached the Nadir of Tax Policy Discourse? (Going Concern)

“Bipartisan” means they’re ganging up on us: Wind energy tax breaks are bipartisan in Iowa (Ames Tribune)

Kay Bell has a new Carnival of Taxes for State Fair week!

Tax Policy Blog:  Misunderstanding Tax Reform: The Case of The Olympic Tax Elimination Act

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Independence Day week Carnival!

Thursday, July 5th, 2012 by Joe Kristan

Even if you shot off all of your bottle rockets last night, there’s still fireworks at Kay Bell’s Carnival of Taxes!

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Kay has braved the heat to round up the best of the tax blog world, so check it out!

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June Swoon Carnival!

Wednesday, June 6th, 2012 by Joe Kristan

School’s out!  Celebrate at Kay Bell’s new Carnival of Taxes!

Kay rounds up the best the tax blog world has to offer.

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End of session Carnival!

Thursday, May 10th, 2012 by Joe Kristan

The Iowa General Assembly went home for the year last night.  It’s a beautiful day.  Celebrate at the new edition of Kay Bell’s Carnival of Taxes!

The fun never adjourns at the blog world’s finest gathering of tax-related posts.

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Spring forward to St. Patrick’s day carnival!

Tuesday, March 13th, 2012 by Joe Kristan

Enough of this namby-pamby springing forward only one hour. Spring forward all the way to St. Patrick’s day and get the party started at the new Carnival of Taxes!
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Once again Kay Bell has scoured the blog world for the latest and greatest in tax coverage, so climb on top the bus and head on over!

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Windy leap-day Carnival!

Wednesday, February 29th, 2012 by Joe Kristan

You get a free day today! Use it to blow into Kay Bell’s place for the new Carnival of Taxes!

Austin’s greatest tax blogger has rounded up the best the tax blog world has to offer, so ride like the wind over there!

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Saddle up for the Carnival!

Thursday, February 16th, 2012 by Joe Kristan

Kay from Texas has rounded up the best in tax blog posts this side of the Pecos, so put on your cowboy hat and mosey on over to the new Carnival of Taxes!

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Chinese New Year Tax Carnival!

Tuesday, January 31st, 2012 by Joe Kristan

Kay Bell ushers in the Year of the Dragon with a new Carnival of Taxes!

You can ponder the passing of the Year of the Rabbit at the blog world’s finest roundup of tax posts.

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Slippery streets carnival!

Tuesday, January 17th, 2012 by Joe Kristan

We got our first decent snowfall overnight, so the streets are slick. Maybe it’s a good day to have an extra cup of coffee at Kay Bell’s Carnival of Taxes while the street crews do their thing.

It’s a good week at the blog world’s roundup of tax posts. Take your time; sometimes you get the goods delivered faster that way.

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St. Nicholas Day Carnival!

Tuesday, December 6th, 2011 by Joe Kristan

Still wondering how that candy made it into your shoes last night?

Stop worrying and go see what Kay Bell has for your stocking at the new Carnival of Taxes!

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First snow Carnival!

Wednesday, November 9th, 2011 by Joe Kristan

We got our first snow this morning. Fix yourself some hot chocolate and hunker down with the new Carnival of Taxes!

Kay Bell tours the world of tax blog posts from warm Austin. If that doesn’t fill you up, you can then head to New Jersey for Robert D. Flach’s “Buzz” roundup of tax posts.

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Beer and Pumpkins Carnival!

Wednesday, October 5th, 2011 by Joe Kristan

It’s Oktoberfest time, so pour a tall one, climb into your pumpkin shell and visit the Oktoberfest edition of the Carnival of Taxes!

There’s always good stuff at the premier roundup of tax blog posts.

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Texas is Burning carnival

Wednesday, September 7th, 2011 by Joe Kristan

Texas may be on fire, but that doesn’t stop doughty Texan Kay Bell from hosting a new Carnival of Taxes!

Flickr image courtesy Texas Military Forces under Creative Commons license.
Flee the flames and enjoy Kay’s roundup of the best in tax blogging this side of the Pecos.

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Carnival of the cool

Wednesday, August 3rd, 2011 by Joe Kristan

It won’t reach 90 today for a change, so get out to the Carnival!

That’s Kay Bell’s Carnival of Taxes, a roundup of good stuff from tax blogs everywhere.

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Hot summer Carnival!

Wednesday, July 6th, 2011 by Joe Kristan

It’s too hot to sleep, so grab your cigarettes and cigars, cameras and film, and head to the new Carnival of Taxes!
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Kay Bell has rounded up some of the best the tax blog world has to offer. Check it out.

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Cool-down carnival

Tuesday, June 7th, 2011 by Joe Kristan

It’s way too hot out there today, so grab a waffle cone and chill with the new Carnival of Taxes, where Kay Bell rounds up the latest and greatest in tax blogging.
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May Day Tax Carnival!

Tuesday, May 3rd, 2011 by Joe Kristan

You’re always a lucky ducky at Kay Bell’s Carnival of Taxes!
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So in honor of the true spirit of May Day, run on over to Kay’s Place for the best roundup of tax blog posts this side of the Rio Grande.

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