Posts Tagged ‘Farm Tax School’

Tax Roundup, 12/17/2012: Ames! And fixing the cliff by fudging withholding.

Monday, December 17th, 2012 by Joe Kristan

The expectant crowd gathers in Ames, Iowa for the final 2012 session of the ISU Center for Agricultural Law and Taxation Farm and Urban Tax School. 

 20121217-1

350 practitioners are signed up, and the coffee’s on!

20121217-2 

Fiscal Cliff Notes

 Because writing big checks in April is always popular.  A few commenters have said that the Treasury Secretary can prevent Fiscal Cliff disaster by just setting the withholding tables to pretend that the tax law isn’t changing January 1.  Marie Sapirie of Tax Notes says it’s not that simple ($link)

Commentators have suggested that Geithner may even be able to prospectively implement the administration’s policy of raising taxes on taxpayers making more than $250,000 per year by increasing withholding only on income above that level. That is almost certainly wishful thinking. Whatever the “most appropriate” amount of withholding to reflect the tax rates in section 1 may be, section 3402(a) does not give the Treasury secretary the power to create withholding tables that have no basis in current or recently expired law.

Of course Secretary Geither hasn’t always been big on following the tax law.

TaxProf,  NY Times: Itemized Deduction Cap: Popular, But Unfair 

KayBell,   National Taxpayer Advocate Nina Olson discusses fiscal cliff tax complications

TaxGrrrl,  Budget Resolution May Come Down To One Question

Steven Rosenthal,  Paying Taxes on Capital Gains Early: How Investors are Avoiding Tax Hikes (TaxVox): “All of this planning suggests that sophisticated taxpayers are outracing Congress again.” 

Nick Kasprak,Alternative Minimum Tax Increase Looming Over Fiscal Cliff Negotiations (Tax Policy Blog)

Robert D. Flach,  WHAT FOOLS THESE POLITICIANS BE!

Remain calm, all is well.  Deficit Hysteria and Debt Denialism (Joseph Thorndike, Tax.com)

 

TaxProf,  Sullivan: Why the SALT Deduction Is Always Under Attack

Megan McArldle discusses an interesting pension funding approach:

Big news in pensions today: Silverdex, a major US-based conglomerate with fingers in just about every economic pie, from mining to solar cells, turns out to have been stuffing its main pension fund full of… it’s own corporate bonds

Just kidding. 

I don’t really know how to say this, but sorry, I lied a little bit.  I’m not talking about a private company at all, because of course, if a private company did this, it would be completely and totally illegal.  Regulators would have shut this down decades ago and probably at least a few lower-level executives would have spent a little time in the pokey.  Instead this is, of course, a description of how the United States Social Security “trust fund” works.

Like so many things: private sector does it, it’s scandal and ruin.  Government does it, it’s Tuesday.

Courtney A. Strutt-Todd,  Tax Law Blog: Attacks on the Exemption for Municipal-Bond Interest and Why it is Important to the Average Taxpayer (Davis Brown Tax Law Blog)

Paul Neiffer,  Another Nice Feature of a Living Trust

Brian Strahle,  D.C. Combined Reporting: How Much Will it Cost Your Company?

Missouri Tax Guy,   Capital Gains, What you need to know 

Trish McIntire links to the annoying new 2013 EIC Interview Sheet, so practitioners can double up as welfare caseworkers.

Russ Fox,  What Happens When Cigarette Taxes go Through the Roof?

Martin Sullivan,  Capital Gains Frustration for Tax Reformers (Tax.com).  His “reformers” want to increase the problems inherent in capital gains taxes by increasing them.  May their frustrations endure.

The Critical Question:  Naming Spousal IRAs After Senator Hutchison – Is That A Priority ?  (Peter Reilly)  I still think Roth & Company should get royalties for the Roth IRA…

Linda Beale,   Goggle’s Bermuda hideaway/HSBC’s too-big status: time to rein in the corporations!  Too big, eh?  Google’s entire market capitalization is about $234 billion this morning.  That’s how much the federal government spends in 23 days.  And it’s Google that’s too big? 

 Sorry, I think there’s already a mortgage on it.  A New Way to Reduce Our National Debt – Sell Alaska. (Greg Mankiw)

Share

Tags: , , , , , , , , , , , , , , , , , , , ,
Posted in Tax Roundup | No Comments »

Tax Roundup, 12/11/2012: Red Oak! And impossible dreams.

Tuesday, December 11th, 2012 by Joe Kristan

The Tax Update is in Red Oak, Iowa today for the seventh tour date for the Iowa State University Center for Agriculture and Taxation Farm and Urban Tax School.  This is our first visit to Red Oak.  From Wikipedia:

Red Oak is a city in and the county seat of Montgomery County, Iowa, United States,[3] located along the East Nishnabotna River. The population was 5,742 in the 2010 census, a decline from the 6,197 population in the 2000 census.[4][5]

..

The community has had a disproportionate number of casualties in the Civil War and World War II.

In the American Civil War, the area provided more Union troops per capita than any other in the state.[10] Company M (which also included residents from Montgomery County had 160 casualties among its 250 members; 52 men were killed in action.[11]

Early World War II battles claimed a disproportionate number of soldiers from Red Oak (although the final casualty statistics tend to disprove the oft-repeated statement that Red Oak suffered more losses per capita than any other American community).[10][12][13] In the Battle of the Kasserine Pass in February 1943, forty-five soldiers from Red Oak alone were captured or killed.[14] At the time more than 100 telegrams arrived in Red Oak saying that its soldiers were missing in action.[15]

Here is the crowd:

 

I can confidently endorse the Red Oak coffee and donuts.  Register now for the last session next Monday in Ames!

 

Eric Toder,  The Coming AMT Debacle. (TaxVox)   If Congress fails to pass an alternative minimum tax “patch,” the AMT is slated to rise drastically for 2012:

Overall, AMT liability will rise from $34 billion to $120 billion. Of that $86 billion increase, new AMT taxpayers will owe $64 billion—an average of about $2,250–while those currently on the tax will pay another $22 billion—an increase of about $5,500 each over the nearly $8,500 average they would pay with a patch.

If you suspect that a tax that affects 32 million households is not limited to the rich, you are right. It is true the enhanced AMT will hit upper middle-income taxpayers the hardest – 98 percent of those with adjusted gross income between $200,000 and $500,000 will pay an average of almost $11,000 in AMT on top of their regular tax liability.

With our political class, failure is always an option. 

 

David Henderson, When Taxes are Cut, What Does Regressive Mean?:

The bottom line is this: Start with any system of progressive taxation, cut everyone’s taxes by the same percent, and you will have implemented, by their standard, a regressive tax cut.

Exactly.  If you only tax rich people, any tax cut “disproportionately benefits the rich.”

Greg Mankiw,  Make Your Own Deficit-Reduction Plan, links to a Wall Street Journal’s interactive graphic featuring deficit reduction options.

Janet Novack, Gucci Match: Fiscal Cliff Tax Fight Pits The 2% Against The 0.1% And The Richest 400

Anthony Nitti,   Here’s Your Update On The Fiscal Cliff Negotiations: Both Parties Agree That the Other Party’s Proposal Stinks.  This time, they’re both right.

 

Paul Neiffer,   Watch Your Timing On Year-End Gifts 

Brian Strahle, D.C. Ruling Presents Franchise Tax Opportunity

Jack Townsend, I Should At Least Mention Stolen Identity Refund Fraud

To dream the impossible dream… Musical theater maven Robert D. Flach tilts at a windmill:

I have a dream that our elected officials in Washington can create a simple and fair Tax Code.
 
I have a dream that our elected officials in Washington are really not just self-centered and self-absorbed idiots.

That’s right up there with my dream of winning the Triple Crown. As a horse.

No, we’ve been trying that for a long time here.  Can tax on witch-doctors cure Swaziland’s fiscal pain? (Nanette Byrnes, Tax Break)

That’ll work:  Alan Simpson goes ‘Gangnam Style’ in deficit reduction video effort  (Kay Bell)

Sacre Bleu!  Gerard Depardieu Leaves France After Tax Increases (Joseph Henchman, Tax Policy Blog)

Robert Goulder,  Timeless Tax Policy & The Other Colbert (Tax.com)

It might someday help him clear the AGI floor for health cost deductions:  Law Student Wins Krispy Kreme Doughnuts for a Year and Wonders: What Are the Tax Consequences? (Tax Prof)

Share

Tags: , , , , , , , , , , , ,
Posted in Uncategorized | No Comments »

Tax Roundup, 11/19/2012: Pushing the AMT patch over the Fiscal Cliff. Also: Muscatine!

Monday, November 19th, 2012 by Joe Kristan

The Tax Roundup is reporting from Muscatine, Iowa, home of the 900-lb gorilla of Iowa tax policy, Iowans for Tax Relief.  Also a 24/7 WalMart, for business travelers who forget to pack socks.

Roger McEowen and IRS Taxpayer Liason Christy Maitre give the latest scoop on the Fiscal Cliff at the Iowa State University Center for Agricultural Law and Taxation Farm and Urban Tax School, Muscatine session.

Department of We’re Doomed:   The leaders of the House Ways and Means Committee say that they don’t plan to do an “AMT patch” separately from the “fiscal cliff” negotiations for next year.  Absent a patch, the AMT exemption for 2012 will decline drastically, throwing tens of millions of new taxpayers into AMT and increasing the tax bill for some taxpayers by over $8,000.  Tax Analysts reports ($link)

Asked by reporters about the AMT patch, which has caused anxiety for IRS officials preparing for the coming tax return filing season, Ways and Means Chair Dave Camp, R-Mich., responded, “I’m hopeful that we will address AMT by the end of the year.” He added that he doesn’t think a patch will be passed as stand-alone legislation.

…

Ways and Means ranking minority member Sander M. Levin, D-Mich., also expects the AMT patch and the extenders to be included in a larger deal on the fiscal cliff. “I think it’s preferable for everything to be put into a package. They relate to each other,” he told Tax Analysts.

The IRS warned last week that failure to patch AMT will delay filing season for affected taxpayers to, at best, sometime in March, with punishing big tax bills for millions of unsuspecting taxpayers.  Now Congress ties the immediate catastrophe of not patching the AMT to the impending catastrophe of the scheduled tax  rate increase.   No small failures for these guys.

 

Fiscal Cliff self-help:  Pressure’s on to sell farmland before end of the year (Dan Piller, Des Moines Register:

The clean, placid appearance of post-harvest Iowa farmland appears to be far removed from the messy fog of Congressional politics and the fiscal cliff.

But pressure is intense to sell land before Jan. 1 when, if Congress doesn’t intervene, capital gains taxes will rise from 15 percent to 23.8 percent and deductions on estate taxes will drop from $5 million to $1 million.

Yes, taxes do affect behavior:

“The tax changes are on everybody’s minds. We have a sale every day, except Sundays, between now and Thankgiving,” regional sales manager Sam Kain of Farmers National Co. said before selling 169 acres of Bremer County farmland from the estate of Alvin and Maxine Walther on the day before the election.

“I’ve been in this business for 30 years and I’ve never seen it this busy,” Kain said.

Selling now doesn’t necessarily help with the estate tax problem (unless, improbably, farm prices continue to rise), but it can make a big difference on income taxes.

Related:

Anthony Nitti, 5 Tax Planning Strategies For Dealing With The Additional 3.8% Obamacare Tax On Investment Income

Peter Reilly,   Carbon Tax Getting Serious Consideration As CBO Seeks To Address Regressiveness.  Sorry, the rich guy isn’t buying.

Martin Sullivan,  The Hidden Economic Damage of Deduction Caps (Tax.com)

 

In other news…

Robert D. Flach,  DEDUCTING SANDY-RELATED VOLUNTEER EXPENSES

Because one disaster deserves another.  Hostess bakery’s closure prompts another try at a federal fat tax (Kay Bell)

At least it’s something they’re good at:  As Hostess Folds, Congress Thinks of New Ways To Kill Snack Food Industry (TaxGrrrl)

 

Paul Neiffer,   Don’t Forget The Small Employer Health Care Credit

Brian Strahle,  Take Advantage of Multistate Tax Year-End Issues and Opportunities

Jim Maule,   Taxation of Medical Study Payments

 

Be thankful, it could be worse.

As we wind down for Thanksgiving week, lets give thanks for not being in California.  David Henderson discusses the Golden State’s self-inflicted pending disaster in It’s not Go Galt: It’s Go to Texas:

As I have noted before, the Laffer Curve–the curve that relates tax revenues to tax rates–must be correct.  The relevant question is where we are on the Laffer Curve.  Are we on the part of the curve–the “prohibitive region”–where an increase in marginal tax rates will reduce revenues and a decrease in marginal tax rates will increase revenues?  For the United States, I think the answer is pretty clearly no.

But what about for California?  We are about to have an empirical test.

The Laffer Curve is the idea that there is a revenue maximizing tax rate.  It’s not zero, and it’s not 100%, because people would do very little that would result in a 100% tax.  The maximum rate is different for different taxes  — a gross receipts tax would have a lower revenue-maximizing rate than an income tax because it would not have deductions, for example.  Mr. Henderson says that’s also true for state income taxes:

When state governments increase tax rates, people in those states have a relevant option that is not relevant to a discussion of increases in federal tax rates.  Specifically, they can move to one of the other 49 states.  So a simple estimate of the elasticity of taxable income with respect to marginal tax rates will underestimate the actual elasticity. Some of those other states with lower marginal tax rates on high-income–and that includes virtually all the other states–will be attractive substitutes.  Texas, for example, has no income tax.  Neither do Washington, Florida, and Nevada, to name just 3 others.

That could cause the tax take for California from its new tax increases to be much less than they are hoping for:

Notice one powerful implication of this second reason that makes the analysis quite different from the analysis for federal tax-rate increases.  Whereas when the federal government raises tax rates, any loss in revenue is due mainly to people cutting back on their income somewhat, when a state government raises marginal tax rates, people who move to another state cut the income that the state taxes to zero.

It’s not just a theoretical issue, as Russ Fox reports in  Phoenix Woos California Businesses:

A hint to California: As you continue making the state more and more hostile to businesses, businesses are forced to react.  No business wants to move (it’s expensive and disruptive), but like my business that moved last year, eventually the desert wastes of Las Vegas or Phoenix start looking really attractive.

The California weather’s nice, but not at any price.

 

And Ontario doesn’t even have the nice weather.   The TaxProf,  Tax Consequences of Florida Marlins – Toronto Blue Jays Trade.

Share

Tags: , , , , , , , , , , , , , ,
Posted in Tax Roundup | No Comments »

Tax Roundup, 11/8/2012: Denison Day! And some things to look forward to.

Thursday, November 8th, 2012 by Joe Kristan

The Tax Update is on the road in beautiful Denison, Iowa, birthplace of Donna Reed!

 

I’m speaking at the Iowa State University Center for Agricultural Law and Taxation Farm and Urban Tax School.  There’s still time to register for the remaining five sessions!

 

“‘There are a lot of sales right now,’ explains Steve Bruere, president of Peoples Co. in West Des Moines.”  From IowaFarmerToday.com:

“I see a drop off (in the number of sales) after the first of the year.”’s one logical response to the looming increase in capital gain rates. 

…

With potential sellers concerned they may have to pay a 20 percent capital gains tax rate instead of 15 percent, and with many of them questioning what other tax changes may be coming, there has been a push to sell now.

The logic says if you were seriously considering a land sale, you would make sure it happened before the end of the year, Bruere says.

Actually, the rate will probably be 23.8%, including the new Obamacare tax on investment income.

More to look forward to:  “The IRS Small Business/Self-Employed Division plans to increase its audit activity for passthrough entities beginning in 2014, SB/SE Commissioner Faris Fink said November 7,”  reports Tax Analysts ($link).  But if you operate a C corporation, don’t be smug:

SB/SE is planning a one-year National Research Program project to study areas of noncompliance. Under the project, the division will examine 2,500 returns from corporations with assets of less than $250,000, Fink said.

Something to look forward to, like a colonoscopy appointment.

 

The Election is over. Now what?

TaxProf, Boehner Would Accept ‘New Revenue’ Under ’Right Conditions’

Going Concern, Hold the Phone, John Boehner Didn’t Say Anything About Taxes Going Up

 Martin Sullivan,   Wanna-Be Tax Reformers Need a Dose of Reality (Tax.com)

Daniel Shaviro,  Boehner on the possible terms for a fiscal cliff deal

Kay Bell,  Investors sell stock ahead of fiscal cliff, plus locking in 15 percent capital gains

Patrick Temple-West,  How far can Obama push on key issues including tax increases, and more

Anthony  Nitti,  With The Election Over, We Can Finally Do Some Meaningful Tax Planning. Six Year-End Steps To Consider.  #6 is bold planning indeed.

 

In other news… 

Robert D. Flach,  DEDUCTING SANDY

William Perez,  New Jersey Tax Relief for Hurricane Sandy

Linda Beale,  Tax Relief for Victims of Sandy

Richard Morrison,   Chart of the Day: Can Taxing Millionaires Eliminate the Deficit?  (No).

Brian Strahle,  How Virginia Based Companies Can Reduce Their State Income Tax Liability

TaxGrrrl, IRS Commissioner Says Public Goodbye After Election 2012

Jack Townsend,  Commissioner’s Swan Song – Excerpts on Offshore Bank Initiatives

 

Tomorrow is Doug Shulman’s last day as IRS Commissioner.  So how is the fight against tax refund fraud going?

Tampa Police Chief Jane Castor went public with her irritation at the slow pace of the investigation into a piece of the tax fraud scourge spreading among street criminals. Authorities say hundreds of millions of dollars in bogus income tax returns have been processed from the Tampa area alone.

“We have an individual that we know did in the ballpark of $9 million in tax fraud,” Castor said in February. “He was arrested and charged in September. And there’s no reason for us to believe that he’s slowed down at all.”

In March, Tampa Police Detective Sal Augeri testified before a U.S. Senate subcommittee in Washington about tax refund fraud and described the Simmons case without naming him.

“We have no reason to believe he has stopped committing this crime,” Augeri said then.

Russell B. Simmons, the man referred to above, pleaded guilty this week to tax fraud. He has to give up ill-gotten goods, including “… a $60,000 Bentley coupe and diamond jewelry that included a $30,000, 18-karat gold Rolex watch with a diamond dial; a 14-karat gold men’s bracelet with 2,420 diamonds; a 14-karat chain and “RS” pendant with 703 diamonds; and a 14-karat ring with 110 diamonds.”

Every day the IRS let the identity thief continue to operate, he created new little nightmares, like those experienced by Jason Dinesen’s client, for the innocent taxpayers whose identities he stole.  Meanwhile, Commissioner Shulman was focusing IRS resources on creating a big, expensive and futile preparer regulation bureaucracy.  A man has to have priorities, after all.

Share

Tags: , , , , , , , , , , , , , , , , , ,
Posted in Tax Roundup | 1 Comment »

ISU-CALT farm tax school schedule released

Monday, February 6th, 2012 by Joe Kristan

The Iowa State University Center for Agricultural Law and Taxation has released its schedule for the 2012 Farm Tax Schools. The biggest change for this year is that a school in Red Oak will replace the Griswold session, probably because of the rush-hour traffic problems in Griswold:
20101206-2.jpg
The schedule:
October 29-30: Mason City (North Iowa Area Community College)
November 7-8: Waterloo (Hawkeye Community College)
November 8-9: Denison (Boulders Conference Center)
November 12-13: Ottumwa (Bridge View Center)
November 19-20: Muscatine (Clarion Hotel)
November 27-28: Sheldon (Northwest Iowa Community College)
December 11-12: Red Oak (Red Coach Inn)
December 17-18: Ames (Quality Inn and Suites)
Watch for more details at the CALT site.

Share

Tags: , ,
Posted in Uncategorized | No Comments »

Ottumwa party!

Thursday, November 17th, 2011 by Joe Kristan

The Tax Update is in Ottumwa today, helping out with the Iowa State University Center for Agricultural Law and Taxation Farm Tax School.
Here IRS Stakeholder Liason Christy Maitre works with a practitioner who has been waiting for the IRS to process his PTIN application:



Emcee Roger McEowen gets excited about excess soil fertility:



If you want to join the fun, we still have schools left this year in Waterloo, Griswold and Ames!


Share
				


				
Tags: , , 
 Posted in Uncategorized |   No Comments »


			


				

				
Donna Reed Country

				Monday, November 14th, 2011 by Joe Kristan

				

					
It’s a beautiful fall day in Denison, Iowa, where I’m helping out at the Iowa State University Farm Tax School. Only four sessions left, so register now!



Denison is Donna Reed’s hometown, but has been relatively quiet since.

Posting may be light today, but I will do what I can in the breaks.


Share
				


				
Tags: , 
 Posted in Uncategorized |   No Comments »


			


				

				
Mason City Monday

				Monday, November 15th, 2010 by Joe Kristan

				

					
The Tax Update was up bright and early today to get ready for the ISU Center for Agricultural Law and Taxation farm tax school at North Iowa Area Community College in Mason City.

20101115-1.JPG

This one is sold out, so if you want to attend one of the last three schools — in Muscatine, Griswold and Ames — sign up today!


Share
				


				
Tags: , , 
 Posted in Uncategorized |   No Comments »


			


				

				
Denison, 2010!

				Monday, November 1st, 2010 by Joe Kristan

				

					
It’s a gorgeous, crisp fall morning in Western Iowa, where I am speaking at the ISU Center for Agricultural Law and Taxation at the Boulders Conference Center in Denison. Also speaking are CALT director Roger McEowen and IRS Practitioner Liason Kristy Maitre.

20101101-1.JPG

The audience includes Tax Update Twitter friend @BluffsCPA. You, too, can follow us on Twitter or “like” us on Facebook.


Share
				


				
Tags: , , , , 
 Posted in Uncategorized |   No Comments »


			


				

				
Waterloo!

				Monday, October 25th, 2010 by Joe Kristan

				

					
A happy crowd, including Iowa legal legend Orville Bloethe (front row, left) at the Waterloo session of the Iowa State University Center For Agricultural Law and Taxation Farm Tax School. If you can’t meet us in Waterloo, it’s not too late — sign up now to see us in Denison, Ottumwa, Mason City, Muscatine, Griswold or Ames!

20101025-1.JPG


Enhanced by Zemanta


Share
				


				
Tags: , , 
 Posted in Uncategorized |   No Comments »


			


				

				
It’s a party in Ames!

				Monday, December 14th, 2009 by Joe Kristan

				

					
20091214-1.JPG

Some of the 300 happy practitioners at the ISU Center For Agricultural Law and Taxation Farm Tax School this morning in Ames. This is our last school for the year. Thanks to everybody who has seen us in Ames, Sheldon, Mason City, Waterloo, Griswold, Ottumwa, Muscatine and Denison!


Share
				


				
Tags: , 
 Posted in Uncategorized |   No Comments »


			


				

				
Monday in Muscatine!

				Monday, November 23rd, 2009 by Joe Kristan

				

					
Eager and happy tax practioners raptly follow my presentation this morning at the Muscatine edition of the Iowa State University Center for Agricultural Law and Taxation Farm Tax School.

20091123-1.JPG

If you haven’t signed up yet (and why not?), you can still sign on for the Denison and Ames schools!


Share
				


				
Tags: , , 
 Posted in Uncategorized |   No Comments »


			


				

				
On stage in Ottumwa!

				Thursday, November 12th, 2009 by Joe Kristan

				

					
20091112-1.JPG

The Tax Update is on the road in Ottumwa today at Indian Hills Community College as part of the ISU Center for Agricultural Taxation Farm Tax School series, speaking to these happy practitioners. You can still sign up for schools in Muscatine, Denison, Mason City and Ames. Sign up today!


Share
				


				
Tags: , 
 Posted in Uncategorized |   No Comments »


			


				

				
Farm tax school!

				Wednesday, September 30th, 2009 by Joe Kristan

				

					
Registration is open for the Iowa State Center for Agricultural Law and Taxation 2009 Farm Tax Schools. I will be joining the tour this year for the schools, which feature a great slate of instructors, including Neil Harl, who started the program; CALT director Roger McEowen; and practitioners David Bibler, James Goodman, and Lee Wilmarth. Kristie Maitre of the IRS will also be there.

Tour Dates, instructors and locations:


Reblog this post [with Zemanta]


 (more…)


Share
				


				
Tags: , 
 Posted in Uncategorized |   No Comments »


			


				

				
Farm tax school: save the date!

				Tuesday, March 17th, 2009 by Joe Kristan

				

					
The ISU Center for Agricultural Law and Taxation has set the dates for the 2009 Farm Tax Schools. I will be on the tour for several of the dates this year, so get your tickets now!


Share
				


				
Tags: , 
 Posted in Uncategorized |   No Comments »