Posts Tagged ‘Fat Joe’

Tax Roundup, 8/27/2013: This isn’t Butte edition. And: you’re not your mom!

Tuesday, August 27th, 2013 by Joe Kristan

Flickr image by Ellenm1 under Creative Commons licenseThe Great Iowa RV Roundup.  Iowa has caught on to recreational vehicle owners who have registered their units in Montana to save taxes and fees.  Now the Department of Revenue is giving these Iomontanans a chance to come clean and avoid harsh newly-enacted penalties for misregistration.

From the Des Moines Register:

State officials say the offer would require owners to pay a 5 percent vehicle registration fee, based on the purchase price. They also would pay a penalty of 10 percent of the fee.

So under the terms of the settlement, the owner of a $200,000 motor home registered in Montana would pay a $10,000 fee to properly register it in Iowa. On top of that, a $1,000 penalty would be assessed.

Violators who don’t accept the settlement could face fraud charges, ranging from a simple misdemeanor to a felony. They can also be hit with fines equal to 75 percent of the fee that was evaded. For example, if someone should have paid $25,000 on a plush $500,000 motor home, they could be slapped with total fees and penalties of $43,750.

I think you could buy a passable used camper for $43,750.

 

Richard Borean, Scott Drenkard, Monday Map: Combined State and Local Sales Tax Rates

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Iowa’s just about in the middle.

 

You’re not your Momma.  While mothers love to help out their children, a St. Louis-area man seems to have expected too much of Mom when he filed his tax returns.  Stltoday.com reports:

To reduce his tax liability, he claimed $18.2 million in losses associated with a number of entities, including Morriss Holdings, MIC Aircraft, Tech Aircraft and MIC Real Estate, that were limited liability companies established for his mother. His mother had already claimed the losses for her own benefit in previous years, the U.S. Attorney’s Office said.

There are some things Mom just can’t do for you.  The man pleaded guilty to tax evasion charges yesterday.

 

Martin Sullivan, New Hampshire’s Value Added Tax (Tax Analysts Blog):

But where New Hampshire really shines is with its Business Enterprise Tax. Like the BPT, the BET applies to all business regardless of legal form. Newly-elected Republican Governor Steve Merrill was the driving force behind original passage of the tax in 1993. The original rate was 0.5 percent. It is now 0.75 percent. The tax base is the sum of: (1) compensation paid to employees; (2) interest paid on debt; and (3) distributions to shareholders and owners. Except for the exclusion of undistributed profits from the tax base, the sum of these components is a firm’s value-added tax.

I still prefer the Tax Update Quick and Dirty Iowa Tax Reform Plan.

 

Rapper “Fat Joe” reports to prison to serve a four-month tax crime sentence. (TMZ.com)

TaxProf,  The IRS Scandal, Day 110

Roberton Williams,  Honey, I Shrunk the AMT (But It’s Not Gone) (TaxVox):

So the AMT lives on, complicating the tax returns of more Americans every year. For many, it will come as a nasty surprise: new AMT taxpayers often learn about the bonus tax only when a letter from the IRS tells them they owe extra tax plus interest and possibly penalties. 

The AMT amounts to a big lie.  They pretend to give you a tax break, but then AMT makes it go away.

 

Jeremy Scott, Cruz’s Push to Defund Obamacare Could Derail Tax Reform (Tax Analysts Blog)

TaxGrrrl, IRS To Michael Jackson’s Estate: Who’s Bad?   A $700 million estate tax battle.

Paul Neiffer,  Installment Sale Update, clarifying the application of the Obamacare Net Investment Income Tax on active farmers.

Kay Bell, Spaniards hot under collar after government taxes the sun 

Me, Charity may begin at home, but not with the down payment.  A “down payment assistance” outfit comes to grief in Tax Court.

 

News you can use.  Open Atheists Already Collect Tax-Free Clergy Housing Allowances  (Peter Reilly)

Career tips: Partners Hate Nothing More Than Employees Skipping Training Because They’re Working, Nursing a Hangover (Going Concern)  It’s a good thing we don’t have national training at our firm!

 

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Tax Roundup, 12/21/2012: Plan B breaks, Tiger tamed.

Friday, December 21st, 2012 by Joe Kristan

20121221-1Plan C through Z?  House Speaker Boehner’s effort to pressure the White House into compromise with “Plan B,” a proposal to retain 2001 tax rates on incomes below $1 million, died last night.  The Speaker cancelled a vote on the plan when it was clear that it lacked enough support to pass.  The Wall Street Journal reports:

After pulling his bill without taking a formal vote, Mr. Boehner  unexpectedly disbanded the House until after Christmas, leaving behind
uncertainty about whether Congress and President  Barack Obama would be able to avoid $500 billion in spending cuts and tax increases that begin in January.

So what now?

“The House did not take up the tax measure today because it did not have sufficient support from our members to pass,” Mr. Boehner said in a written statement after a brief meeting with House Republicans. “Now it is up to the president to work with Senator Reid on legislation to avert  the fiscal cliff.”

Is it time to panic?  Will we see a filing season delayed until the end of March, a big 2012 AMT hit, and tax increases all around?  Joe Weisenthal at Business Insider says we aren’t over the cliff yet:

Indeed. If Boehner couldn’t even get the GOP to support a law that would let taxes revert on millionaires, how is he going to get GOP support on a deal that would let taxes revert on those making $250K or $400K, as the President would like to sign?

Here’s the thing with that. Boehner doesn’t need to get all of his caucus, because in the end, if Obama supports the ultimate compromise, then it’s safe to say that the Democrats will bring about 100+ votes in the house to support the bill. And this was always true. It was always the case that the eventual compromise would see Boehner lose 70 or more Republicans, to be made up with Democrat support. So nothing changes on that front.

There’s 10 days left before 2012 expires.  Even then it’s possible that they will make a retroactive deal next year with the new Congress.  The legislative and leadership malpractice continues.

Fiscal Cliff Notes:

TaxProf,  The Competing Obama and Boehner Tax Plans

Kay Bell, Republicans reject Boehner’s fiscal cliff Plan B, House breaks for Christmas

TaxGrrrl, Boehner Fails To Push Through Plan B Before House Walks

Christopher Bergin,  Fiscal Surrender (Tax.com):

So, I would suggest that while General Boehner wants things to look like  he is negotiating a budget deal, he is actually seeking the best surrender terms that he can get. And if the President is a good enough general to understand his position, he will not try to over-exploit it.

Paul Neiffer,  Farmers Might Delay Higher Tax Rates for Three Years?  Thanks to income averaging, a trick available only for farmers,  “…you might be able to earn $1 million from farming and have most of it still subject to the old lower tax rates” if rates go up next year.

Nanette Byrnes,  Blue states lose: how avoiding the U.S. fiscal cliff hits some states harder than others (Tax Break)

Tax Policy Blog, Tax Cut Expiration Would Impact States Unevenly

Janet Novack,  A Closer Look At Boehner’s Plan B: Tax Hikes For Parents And Workers

Howard Gleckman,  Should Working Class Families Pay Higher Tax so High Income People Can Pay Less? (TaxVox)

Jim Maule, The Postponed Pain of Foolish Tax and Spending Decisions

 

St. Louis area preparer “Tiger” Zerjav pleads guilty to tax crimes.  A St. Louis-area CPA who survived an IRS effort to shut down his practice through a civil suit lost a much bigger fight yesterday.  Frank “Tiger” Zerjav pleaded guilty to four tax crime counts in Federal District Court. Courthouse News Service reports:

Frank L. “Tiger” Zerjav Jr., 39, of Wildwood, Mo., pleaded guilty to  four counts of tax evasion from 2001 to 2004, prosecutors said.
     He  and his father, Frank L. Zerjav Sr., were principals in two entities:  Zerjav & Company, a full service accounting firm, and the Advisory  Group USA, which offered tax planning and asset protection strategies.      Zerjav admitted that he funneled his income into several S-corporations and failed to include that income on his tax returns.

The IRS attempted to enjoin the Zerjavs from tax practice in 2008, alleging that they set up S corporations for their clients and then deducted personal expenses on corporation tax returns — including a “Precious Moments” figurine collection.   The Zerjavs settled under what appeared to be favorable terms in 2010.

The plea agreement is not yet public.  Sentencing is set for March 26RelatedCopy of indictment.

 

Jason Dinesen, New Preparer Requirements on Earned Income Credit = Higher Fees for Clients.  That’s on top of the increase in fees that will result from the massive contraction of the preparer industry that we may be in for thanks to the IRS preparer regulation regime.

News you can use:  Pot Business May Be Legal In Washington State But There Are Still Rules (Peter Reilly)

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The Critical Question:  Are Holiday Weddings a Form of Tax Planning? (Jana Luttenegger, Davis Brown Tax Law Blog):

Your  marital status for tax purposes is determined as of December 31. That means if you get married on New Year’s Eve, you are considered married for the entire year and can file as a married couple. Likewise, if a divorce is finalized by the end of the year, you will be considered unmarried for the entire year. Trust me, I am not the  only one that has wondered if certain people getting married on New Year’s Eve did it for tax purposes.

It’s a special Friday Buzz at Robert D. Flach’s place!

Madoff’s brother sentenced on tax charges (Wall Street Journal, via Going Concern)

 

Not so Fat Joe not so good at taxes.  A rapper who performs as “Fat Joe” is in tax trouble, reports AP.  The story says Joseph Cartagena pleaded guilty yesterday to not reporting nearly $3 million in income over two years.

Oddly, he’s not so fat, according to the story:

Wearing a navy suit, Cartagena looked fit and considerably slimmer than the former size that had earned him his rapper nickname. He has been very public about his efforts to shed weight after fellow rap stars died from obesity-related issues and was recently in Newark to speak to schoolchildren about health and fitness.

It’s nice that the schools find such good role models for the kids.

 

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