Posts Tagged ‘insureblog’

Tax Roundup, 4/4/14: Your Honor, nobody follows that law! And: extenders advance.

Friday, April 4th, 2014 by Joe Kristan

20120801-2Maybe that wasn’t the best argument, under the circumstances.  Things went badly for a California man yesterday who tried to tell the Tax Court how things work in the real world.

The man had claimed $5,309 in vehicle expenses for his real estate sales business.  Vehicle and travel expenses are subject to the special rules of Section 274, which requires corroborating records of the amount, time, place and business purpose of travel expenses.  The judge found the taxpayer’s evidence wanting (my emphasis):

Petitioner provided his 2009 Mileage Chart and Itemized Categories documents, which appear to be reconstructions asserting the places he traveled to for business and the vehicle expenses he incurred in 2009. Petitioner, however, failed to provide any corroborating receipts or other records that substantiated the statements made in these two documents. Moreover, neither document identifies a business purpose for each trip, and both fail to show mileage. (While the Itemized Categories does have a handwritten note of “mileage for 2009 11,135″, this note alone does not substantiate the mileage of each trip or show how the mileage was allocated between business and personal use.) Additionally, the 2009 Mileage Chart provides a log for only three weeks for 2009 and fails to show the amount of each trip expense. Because petitioners failed to substantiate the claimed expenses as required by section 274(d), the vehicle expense deduction must be disallowed.

The IRS asserted negligence penalties for claiming an undocumented deduction.  The taxpayer tried to tell the judge that nobody does that stuff:

Petitioner did not argue reasonable cause or good faith. Instead, petitioner argued at trial that no one keeps records in accordance with the “IRS code”.

Well, OK, then, screw Section 274!  Well, no:

That argument is unpersuasive, and the section 6662(a) penalty will be sustained.

The IRS is serious about documenting business miles.  If you have them, keep a log, a calendar, or use a smart-phone app to record the time, place, cost and business purposes of your travels as you go.  If “no one keeps records in accordance with the ‘IRS code,'” no one is going to be happy with the results when they get audited.

Cite: Chapin, T.C. Summ Op. 2014-31

 

20130113-3Tax Extenders Legislation Advances in Senate (Accounting today):

 The Senate Finance Committee voted to revive almost all of the 55 tax breaks that expired Dec. 31, providing benefits for wind energy, U.S.-based multinational corporations and motor sports track owners.

Motor sports track owners have lots of friends in high places.

It’s not just motor sports lobbyists who did will in the Finance Committee.  Almost all
“expired” provisions of this lobbyist right-to-work vehicle were renewed, including the renewable fuel credits.  The only expiring provisions that actually expire are the credit for energy-efficient appliances and a provison for oil refinery property, so there remains some lobbying to do.

But wait, there’s more!  Tax Analysts reports ($link) that this Christmas in April bill includes a provision to “expand the research credit to allow passthroughs with no income tax liability to apply the credit, up to $250,000, to their payroll tax liability.”  It also would renew the reduction of the S corporation built-in gain tax “recognition period” at five years through 2015.

While the House still hasn’t acted on any of this, the passage of all of this stuff on a bipartisan basis would seem to indicate that something like this is likely to pass.  Still, Kay Bell thinks the House tax leadership may be reluctant to follow the Senate’s lead.

The reason Congress pretends these provisions are “temporary” is that under their rules, Congress can pretend that they will only cost as much as they will cost before they are renewed again, regardless of the probability that they will be renewed forever.  It’s the kind of accounting that would get us thrown in jail if we tried it with the IRS or SEC, but it’s just another Thursday in Congress.

Link: “Summary of Modified Chairman’s Mark.”

 

20091010-2.JPGKristy Maitre, E-Filed Return Rejected at Deadline? Don’t Panic

Paul Neiffer, Patronage Dividend Notices Can Be Sent by Email or Posted to a Website

Jason Dinesen, Accounting for the Work Opportunity Credit on an Iowa Tax Return 

TaxGrrrl, Taxes From A To Z (2014): T Is For Tip Income   

Leslie Book, ACA and Victims of Domestic Abuse (Procedurally Taxing)

Russ Fox, Yes, Online Poker Players Must Pay Taxes

 

TaxProf, The IRS Scandal, Day 330

William Perez, State and Local Tax Burdens as a Percentage of Income for 2011

Lyman Stone, Missouri Senate Passes Problematic Income Tax Cut Plan (Tax Policy Blog).  “Missouri’s state Senate this week passed a $621 million tax cut including a 0.5 percentage point income tax reduction and a special carveout to deduct up to 25 percent of business income.”

Howard Gleckman, Two Ways to Fix the Corporate Income Tax: Internationalize it or Kill It. (TaxVox).  I vote “kill.”

 

There’s a new Cavalcade of Risk up!  At Insurance Writer. Don’t miss Insureblog’s contribution about how those making health care policy don’t know what they’re talking about.

 

20120906-1Corporate Welfare Watch:

Iowa city prepares to give mystery company millions. (Foxnews.com)  “West Des Moines city officials have cued up $36 million in local and state tax incentives for a company, but won’t tell its citizens who that company is.”

Iowa senator calls BS on attempt to limit tax credits for fertilizer plant (Watchdog.org)

Iowa View: From wind to solar, clean power is good for Iowa (Joe Bolkcom, Mike Breitbach).  Green corporate welfare is still corporate welfare.

 

News from the Profession: Deloitte Declares Weekends Are Not For Working, Unless You Are Working (Going Concern)

 

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Tax Roundup, 10/17/2013: They’re baa-aak edition. And getting to know CPA firm decisionmakers.

Thursday, October 17th, 2013 by Joe Kristan
Flickr image courtesy dlofink under Creative Commons license.

Flickr image courtesy dlofink under Creative Commons license.

The shutdown is over!  The Republic is saved!  That means the IRS can resume sending nonsensical notices and attempting to run the small players out of the tax-prep business.  Audits can resume.  Didn’t you miss them?

It’s all good for the Tax Update, as the Tax Court will resume issuing cases and the IRS will issue new guidance — the grist for this mill.  It will be interesting if we see large batches of cases issued today and early next week, or if the Tax Court really stopped altogether.

Howard Gleckman,  The Un-Default: Congress Has Become A Seinfeld Episode.  That explains why the show was cancelled.  (TaxVox)

TaxGrrrl, IRS To Employees: Let’s Get Back To Work! 

Linda Beale,  Senate passes debt increase/shutdown ending bill

 

Paul Neiffer,  Watch Out for Distributions from Coops:

A qualified distribution is treated as a deduction on the cooperative return and the producer picks up the income amount.  On the contrary, the cooperative does not get a tax deduction when a non-qualified distribution is given and the producer does not pay tax on that amount. 

Extending the dividends-paid deduction for co-ops to all dividends from all corporations is an obvious method of tax reform that nobody but me seems to support.

 

Peter Reilly, Lawyers Hosting Event For Judges Does Not Count As Charity

Jack Townsend,  Supreme Court Denies Certiorari in Coplan

 

20121120-2Kyle Pomerleau, Obamacare’s Shaky Funding Sources (Tax Policy Blog)

These include a new 3.8 percent “unearned income Medicare contribution” (UIMC) and a new tax on “Cadillac” health insurance plans. The income thresholds for the UIMC are not indexed for inflation, so under law most workers would eventually be subject to the tax-over 80 percent of workers within 75 years, according to the Medicare trustees.”

Due to the fact that the income threshold for the new Medicare tax on unearned income will remain static and incomes will continue to rise, more and more people will eventually be hit by this tax. It will no longer be a tax just on the rich.

You can’t fund a mass welfare benefit with a class tax.

 

There’s a new Cavalcade of Risk up at Terms + Conditions!  The Cavalcade is a roundup of insurance and risk management posts.  As you might expect, there’s lots of Obamacare there.  Meanwhile Insureblog has been all over this, including Adventures On The Marketplace, on one man’s attempt to enroll.

Oh, boy.  Happy Centennial, Income Tax! (Benjamin J. Gehlhausen, Tax Policy Blog): “There is nothing simple about a work that approaches 74,000 pages and currently requires 6 billion hours of work by professionals to prepare return forms and comply with tax laws.”

 

20131017-2The Critical Question: Are States Addicted to Revenue from Unclaimed Property? (Cara Griffith, Tax Analysts Blog).  “According to the COST score card, revenue from unclaimed property is the state’s third largest revenue source, generating 16 percent of the general revenue fund in fiscal 2013.”  So they have to modify the old joke about the economist explaining why he left a $20 bill on the ground.  The old punchline is “if that really were money, somebody would have already picked it up.”  The new version is “If it really were lost, the State would have it already.”

 

News you can use.  When Liberals Preach Fairness, Hold On to Your Wallet (David Brunori, Tax Analysts Blog) “I am sure those hardworking, middle-class wage earners who will pay more are very happy that the bored liberal billionaires are looking out for them.”

TaxProf, Freakonomics: Is Charitable Giving Affected by the Attractiveness of Tax Preparers?  Come on.  If that were true, all of my clients would have contribution carryforwards.

 

News from the profession.  Accounting Career Conundrums: Aspiring CPA Concerned Background Check Will Uncover Revealing Past (Going Concern).  It’s about a former stripper. I suspect she already knows more CPA firm hiring partners than she realizes.

 

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Tax Roundup, 12/31/2012: No cliff deal yet. And Branstad won’t try to fix income tax this year.

Monday, December 31st, 2012 by Joe Kristan

No cliff deal.  As of this morning, the President and Congress continue to fail to to make a “fiscal cliff” deal.  Rest assured, though, that even when they cobble together a lame and harmful deal, as they will today or weeks from now, they won’t even begin to address the real fiscal calamity — the government’s incontinent spending.

The unforgivable sin of the current president, and the last one, and their Congressional enablers, is spreading the idea that the government can buy us all free stuff, and the rich guy will pick up the tab.  Sorry.  The rich guy isn’t buying.

 

Income taxes: the redheaded stepchild of Branstad tax policy?  It looks more and more like the Branstad agenda for the 2013 Iowa legislative session  won’t include income tax reform.  From the Sioux City Journal:

Asked during a recent interview if there was room in all that for income tax reductions during the 2013 session, Branstad replied: “Probably not.”

“Honestly, property tax would be my priority and I’d love to do income tax, too, and maybe, if revenues exceed expectation, we could provide some income tax relief in addition,” Branstad said. “But I think I would rather focus and get something permanent done on the property tax. That’s the place where we’re the least competitive.”

That’s a shame.  Given the economically unwise attitude of the Senate leader, maybe nothing is possible:

Senate Majority Leader Mike Gronstal, D-Council Bluffs, said he would need more details but at first blush he doubted it would go very far in the legislative process if it proved to be “just a way for the wealthiest Iowans to cut their taxes dramatically” while middle-class families picked up a greater share of the tab for the cost of state government.

That’s just silly.  The rich guy isn’t buying for Iowa either.  The wealthiest Iowans always can dramatically cut their taxes with a moving van, until Senator Gronstal figures out a way to keep them from escaping to zero-tax South Dakota or Florida.

Iowa’s income tax is way overdue for replacement.   Instead, it will get more Bondo and bumper stickers.

If Iowa's tax law were a car, it would look like this.

If Iowa’s tax law were a car, it would look like this.

 

Fiscal Cliff Notes:

Greg Mankiw, New York Times:

When President Obama talks about taxing the rich, he means the top 2 percent of Americans. John A. Boehner, the House speaker, talks about an even thinner slice. But the current and future fiscal imbalances are too large to exempt 98 percent or more of the public from being part of the solution.       

Ultimately, unless we scale back entitlement programs far more than anyone in Washington is now seriously considering, we will have no choice but to increase taxes on a vast majority of Americans.

Think Finland.  Unless we choose to be Greece or Argentina.

Gongol: Fiscal Cliff…not resolved. I note a false choice:

The people who make the decisions at the highest level in this republic are either dishonest or utterly economically incompetent if they don’t say the following out loud: “We are demanding more out of our government than we can presently afford. We need to pay more, get less, or both.”

“Either?”  I say “both.”

Kay Bell: Senate ready for some football; adjourns Sunday without reaching fiscal cliff deal

TaxGrrrl, Budget Talks Stall As Reid Calls Latest GOP Move A ‘Poison Pill’

Kevin Drawbaugh, Fiscal cliff talks down to the wire (Tax Break)

Nick Kasprak, 2012 Likely to be First Year Without AMT Patch

Peter Reilly, Dysfunctional Congress – At Least They Are Not Maiming One Another.  If they don’t, maybe we should.

 

The roundup:

Cara Griffith, What Will Become of Physical Presence? (Tax.com)

Paul Neiffer,  Be Careful Of Fiscal Year Section 179 Issues!

Jason Dinesen,  6 Tax Predictions for 2012 — How Did I Do?

Tres Bien. French Court:  75% Tax Rate on Millionaires Is Unconstitutional (TaxProf)

Robert Goulder, Gérard Depardieu: Tax Exile (Tax.com)

TaxGrrrl, Congress Hasn’t Fixed The Budget Yet, Getting A Raise Anyway.  Courtesy of the President, who maybe thinks they make him look good by comparison.

Chris Sanchirico, New Ways to Think About a Tax on Public Companies

Insureblog,  Cavalcade of Risk #173: Post-Mayan Apocalypse Edition

The Critical Question: Is This Tax Preparation Nightmare Reawakening? (Jim Maule)
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Wildfire Cavalcade

Tuesday, July 3rd, 2012 by Joe Kristan

It’s a wildfire-themed Cavalcade of Risk at the Colorado Health Insurance Insider!

Wikipedia image.

Stay cool with the blog world’s roundup of insurance and risk-management.  I find comfort in Hank Stern’s post showing that dark chocolate is a key to good health.

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Avengers cavalcade!

Thursday, May 17th, 2012 by Joe Kristan

The new Cavalcade of Risk is up at Insurance Claims and Issues!

This roundup of insurance and risk-management blog posts covers vital stuff — for example, Insureblog’s analysis of the insurance industry’s exposure if the scenes in The Avengers actually happened.

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Beefy Cavalcade

Monday, April 9th, 2012 by Joe Kristan

If you’ve already beaten the tax deadline, catch your breath at the new Cavalcade of Risk!

This edition of the blog round-up of tax and risk-management posts is at Arbor Asset Allocation Model Portfolio Blog. Don’t miss Hank Stern’s musings on whether beef is connected with premature death.  Some of us would say it’s worth it.

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Feels like spring Cavalcade!

Friday, March 9th, 2012 by Joe Kristan

It’s been unseasonably warm, the locomotives are warmed up, so climb on the new Cavalcade of Risk!
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Among the good items at the new edition of this roundup of insurance and risk management posts — hosted this time at Risk Management Monitor — is an Insureblog post on — well, you’ve heard the expression “it cost me an arm and a leg?”

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Icy roads Cavalcade!

Friday, February 24th, 2012 by Joe Kristan

The new Cavalcade of Risk is up!

Insurance Regulatory Law hosts this roundup of insurance and risk management posts — not least of which is Insureblog’s contribution on finding out if a deceased has life insurance. So manage your risk by getting off the road and checking out the Cavalcade!

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Steamy Cavalcade!

Friday, February 10th, 2012 by Joe Kristan

The cold weather may be dragging on, so fire up the boiler and steam on down to the 150th edition of the Cavalcade of Risk, hosted by My Wealth Builder.

This edition of the blog world’s roundup of insurance and risk management includes, among other gems, Hank Stern on the menace, or not, of earbuds. Check it out!

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Winter’s here cavalcade!

Friday, January 13th, 2012 by Joe Kristan

The weather has finally gotten cold, so put on the snow tires and take your place in the new Cavalcade of Risk!

Political Calculations hosts this edition of the blog world’s roundup of insurance and risk-management posts. Hank Stern chimes in by going old-school on life underwriting.

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Accept no Subs Cavalcade

Thursday, December 15th, 2011 by Joe Kristan

Sometimes even the Weinermobile tires of hot dogs and needs a toasty sub sandwich.

There’s always something fresh, hot and toasty at the Cavalcade of Risk! The new edition of the blog world’s roundup of insurance and risk management is up at Chatswood Consulting. It features Insureblog’s chilling tale of how cheaping out on risk management made a home toasty indeed.

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Crank-up-the-boiler Cavalcade!

Thursday, November 17th, 2011 by Joe Kristan

It may be chilly this morning, but there’s a full head of steam at the new Cavalcade of Risk!

Insurancewriter hosts this edition of the best roundup of insurance and risk-management blog posts this side of Plymouth Rock. Don’t miss Hank Stern’s post on the much-neglected need for disability coverage.

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Chilly November Cavalcade

Thursday, November 3rd, 2011 by Joe Kristan

The weather is suddenly colder. Time to put on a sweater and chase the the new Cavalcade of Risk!
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The Workers’ Comp Insider hosts this edition of the finest roundup of insurance and risk management blog posts to be found any time of the year. Don’t miss InsureBlog’s contribution about a congenial way to ward off dementia.

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Red hot Cavalcade!

Thursday, October 6th, 2011 by Joe Kristan

Spice up your day with a visit to the new edition of the Cavalcade of Risk!

Colorado Health Insurance Insider hosts this roundup of the best in the blog world on insurance and risk management — including Hank Stern on the links between hard times, disability coverage, and disability claims. Disability is probably the most underinsured risk out there.

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Cavalcade of Impending Doom

Thursday, September 22nd, 2011 by Joe Kristan

The new Cavalcade of Risk is up!

The current issue of the blog world’s roundup of insurance and risk management posts, hosted at Disease Mangaement Care Blog, will be sure to frighten you into taking the advice of the InsureBlog. So pile up the sandbags and find out what you need to prepare for.

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State Fair Cavalcade!

Thursday, August 11th, 2011 by Joe Kristan

The Iowa State Fair starts today!

If you can’t make it to the fairgrounds, then take your deep-fried Twinkie to the Cavalcade of Risk! The Healthcare Economist hosts the new edition of the best roundup of insurance and risk-management blog posts in any state. Don’t miss the Insureblog contribution on unusual risks.

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Sporting life Cavalcade!

Friday, July 29th, 2011 by Joe Kristan

Do you know that the only sport riskier than cheerleading is Cave Diving? This is just one of the valuable insights at the new Cavalcade of Risk!

My Personal Finance Journey hosts this edition of the greatest roundup of insurance and risk-management posts in recorded history. So hang up the cell phone, hoist that canoe, and portage over there now!

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Hot day Cavalcade

Thursday, June 30th, 2011 by Joe Kristan

It’s going to be toasty out there today, so find a cool spot in the new Cavalcade of Risk!
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Hosted this week at Worker’s Comp Insider, the blog world’s roundup of insurance and risk management includes, among many other things, Insureblog’s discussion of the insurance perils of “peer-to-peer car sharing services.”

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Taking chances Cavalcade

Thursday, May 5th, 2011 by Joe Kristan

There’s nothing like a good train wreck to remind you of the importance of risk management. That’s why you should check out the new Cavalcade of Risk at Health Business Blog.
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The premier roundup of insurance and risk management posts always has good stuff; this one includes discussion of driving without insurance and the market for insuring kangaroos.

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Winter’s revenge Cavalcade

Thursday, March 24th, 2011 by Joe Kristan

So what if the weather is cold again, and there’s snow in the forecast? Just heat up the Weinermobile and drive on in to the new Cavalcade of Risk!
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The one and only roundup of Insurance and risk management blog posts is at My Personal Finance Journey this week. Hank Stern from InsureBlog is there, as usual, this time with coverage of the new federal long-term care coverage program, and its discontents. No, I didn’t know it existed either.

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