The 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
Iowa’s just about in the middle.
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.
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!