Posts Tagged ‘Chris James’

Tax Roundup, 1/4/2013: How many seconds of federal spending do you cover? And more debris from the bottom of the Fiscal Cliff.

Friday, January 4th, 2013 by Joe Kristan

20130104-1Spending, by the numbers.  Local radio guy Brian Gongol asks, Why do we baffle ourselves with huge numbers instead of talking about budgets in per-person terms?  Why, indeed?  You could ask 100 people on the street how much money the government spends and how big the deficit is, and you would be lucky to get the size of the budget within a trillion dollars.  The numbers are hard to comprehend.

The ability of the politicians to get away with talk about “millionaires and billionaires” proves this — a billion is 1,000 million, and while there are likely people on your street with a net worth of $1 million, you probably haven’t met anybody worth $1 billion.  They aren’t remotely the same thing.

In doing year-end tax projections for a client with a once-in-a-lifetime gain from a business sale and a huge resulting tax liability, I wondered how long his enormous (to me) liability would keep the government running.  Dividing the 2012 fiscal year spending of $3.796 trillion by the 31,536,000 seconds in a 365-day year, I figure that the federal blob spends $120,370.37 per second.  The biggest tax liability I’ve ever seen comes well short of funding 2 minutes of government operations.  I probably will never cover a second.  Where do you fit?

 

Fiscal Cliff Webinar!   I will be appearing with Roger McEowen on the “Tax Notes From the Fiscal Cliff” webinar at Noon January 14.  We will be covering the new legislation and the proposed 3.8% “Net Investment Income Tax” regulations.  Register today!

 

The IRS has published new withholding tables for the Fiscal Cliff Legislation (Accounting today)

 

Fiscal Cliff Notes:

Wall Street Journal:  Cliff Fix Hits Small Business; Many Small Entities or Firms May Face Higher Taxes This Year After the Deal

David Henderson, Pssst:  Someone tell the Republicans they won:

So here’s the big news: the anti-tax side won.  Sure, Obama would love
to raise taxes even more, especially on people making between $200K and $450K.  But now he has almost zero leverage to do that. 

I think that’s about right.  And now the President has lost his ability to distract attention from the ongoing fiscal calamity with arm-waving about “millionaires and billionaires.”

Derek Thompson, Sorry, Middle Class: In a Few Years, Your Taxes Will Have to Go Up, Too (via Going Concern).  You know, we could try spending less.  In any case, the rich guy isn’t buying.

Tim Carney: How corporate tax credits got in the ‘cliff’ deal

Katrina Trinko, Hollywood, Electric Scooters Benefit From Tax Breaks in Fiscal Cliff Bill (The Corner)

Brad Plumer, From NASCAR to rum, the 10 weirdest parts of the ‘fiscal cliff’ bill (Wonkblog, via Tyler Cowen).

Chris James, Fiscal Cliff Deal Adjust Capital Gain Rates and Qualified Dividend Rates (Davis Brown Tax Law Blog)

Paul Neiffer, Some More Goodies Buried in the Fine Print

Kay Bell, Redefining ‘wealthy’ for tax purposes

Tax Trials, Fiscal Cliff Legislation – American Taxpayer Relief Act of 2012

Patrick Temple-West, Cliff fix hits small business, and more

Nick Kasprak, 2013 Tax Brackets (Tax Policy Blog)

Roberton Williams, TPC Tax Calculator Shows What Avoiding Fiscal Cliff Means for Taxpayers (TaxV0x)

Howard Gleckman,  What the Fiscal Cliff Deal Really Means for Taxes and Spending

TaxProf,  More Fiscal Cliff Tax Commentary

 

In other news…

Jack Townsend, Wegelin & Co. Pleads Guity to Conspiracy

Lynnley Browning, Swiss bank Wegelin to close after guilty plea.  They opened in 1741.

Jason Dinesen, Tax Predictions for 2013

Trish McIntire, Disclosing Prisoner Returns

Taxdood, Intrastate iGaming: Federal Reporting and Withholding Tax Obligations

Robert D. Flach, WTF IS THIS AMT EVERYONE IS TALKING ABOUT?

News you can use: “Have Fun and Don’t Be Bored” (Brian Strahle)

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Tax Roundup, 9/6/2012: Fertilizer and Iowa tax policy; supporting the arts; mythbusting!

Thursday, September 6th, 2012 by Joe Kristan

So Iowa approved the additional tribute to close the deal on the new Lee County fertilizer plant.  With all of the fertilizer generated by politicians explaining the benefits of the project, it’s hard to see how the new plant can withstand the competition.  My favorite line from the Governor’s press release – purchased with up to $107 million in tax credits, plus local breaks bringing the package to $240 million — was this:

To successfully compete for this project, Iowa had to offer incentives to overcome its current corporate income tax structure.  The governor used this project as an example of why tax reform is necessary.

So the out-of-state company gets $240 million now, while it’s jam tomorrow for everybody already here trying to “overcome” our current corporate income tax structure every day – the same taxpayers who will pay to fertilize the Lee County plant.  Some of us have been pointing out how uncompetitive Iowa’s income tax system is for a long time, but the Governor has done nothing about it in the first two years of his term  — and not much in his four previous terms, either.  But let some out-of-state company present an opportunity for a big ribbon-cutting, and $107 million in tax credits suddenly materialize.  To put that in perspective, Iowa’s entire corporate income tax receipts for fiscal 2011 came to $394.5 million.  Priorities, I guess.

Related: The Tax Update’s Quick and Dirty Iowa Tax Reform Plan, Tax Roundup, 9/5/2012: Laying it on thick for the fertilizer plant. and Celebrate corporate welfare, I mean incentives!

Update, 9/8:  Fertilizer plant deal involves largest tax incentive package in Iowa history (Bleeding Heartland)

 

IRS provides relief for tax filings affected by Hurricane Isaac: (IR-2012-70)

 The tax relief postpones various tax filing and payment deadlines that occurred on or after Aug. 26. As a result, affected individuals and businesses will have until Jan. 11, 2013 to file these returns and pay any taxes due. This includes corporations and businesses that previously obtained an extension until Sept. 17, 2012, to file their 2011 returns and individuals and businesses that received a similar extension until Oct. 15. It also includes the estimated tax payment for the third quarter of 2012, normally due Sept. 17.

It covers 10 Louisiana parishes and four Mississippi counties.

 

12-year sentence for payroll tax scamming.  From a Department of Justice press release:

Bruce Gregory Harrison III of Greensboro, N.C., was sentenced today to 144 months in prison following his December 2011 conviction for payroll tax fraud and other crimes, announced Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; Ripley Rand, U.S. Attorney for the Middle District of North Carolina; and Richard Weber, Chief of Internal Revenue Service (IRS) – Criminal Investigation.

 Harrison was convicted on a 63-count indictment alleging large-scale payroll tax fraud and failure to file individual income tax returns. The evidence at trial and at sentencing showed that Harrison failed to pay over more than $40 million dollars in federal taxes withheld from the pay of his thousands of employees in the years 2004-2006 and 2009.

If you withhold payroll taxes and fail to remit them, the consequences can be a lot worse than late-payment penalties.

 

TaxGrrrl, Eleven Tax Myths Debunked.  The $600 free-money myth, among others.

Did Someone Really Steal Mitt Romney’s Tax Returns From PwC’s Franklin, Tennessee Office?  (Going Concern, Did Someone Swipe Mitt Romney’s Unpublished Tax Returns from PwC? (Anthony Nitti),and Anonymous hackers claim to have Romney’s tax returns, demand $1 million ransom to keep them private (Kay Bell).  I suppose it could happen, but that’s not the way to bet.

Will Freeland,  To Eliminate Income Tax Fraud, Simplify the Tax Code (Tax Policy Blog)

Peter Reilly hosts a guest post, In Defense Of Special Tax Treatment For Clergy

Dan Meyer,  NAEA: Bring AMT and Taxes on Social Security Received into the 21st Century.   It wouldn’t bother me if we left those taxes behind in the 20th Century, actually.

News you can use: Flying 5,400 Miles and Finding an $882,000 Shortfall in a Prizepool Isn’t a Good Thing (Russ Fox)

Support the arts! NY Court to Decide If Lap Dance Is Tax-Exempt Art (TaxProf)

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Isn’t my tax-exempt organization exempt from paying Iowa sales taxes?

Monday, February 20th, 2012 by Joe Kristan

Not so. Chris James explains at the Davis Law Firm TaxIawiowa blog.

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IRS has fun new way to hit you with a $10,000 fine

Wednesday, February 1st, 2012 by Joe Kristan

The tax law’s requirements for reporting foreign assets have expanded. If you are supposed to file new Form 8938, the IRS will send you a $10,000 bill. Chris James has the scoop at Tax Law Iowa.

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