The bill allows taxpayers to use several federal provisions in computing their 2012 Iowa taxes, including:
– The federal Section 179 deduction of up to $500,000.
– The federal above-the-line deductions for tuition and educator expenses.
– The exclusion for IRA distributions to charity for taxpayers who have reached age 70 1/2, and the transitional rules for January 2013 charitable rollovers of IRA distributions.
– The optional deduction for state and local sales taxes.
The bill does not conform Iowa to federal bonus depreciation; Iowa filers will normally use federal standard MACRS depreciation instead.
Tony Nitti, Senate Proposal for Tax Reform Part II: Democrats Seek To End S Corporation Payroll Tax Loophole. It’s similar to nonsensical proposals put forward in prior years to tax S corporation K-1 income when 75% or more of revenues are “attributable” to three or fewer shareholders — an impossible standard to evaluate in many cases, and one that discriminates against the smallest S corporations. It shows they are lazy — the problems with the approach are well known, yet the won’t make the effort to correct, instead trotting out the same old bill. It just shows they aren’t serious.
David Cay Johnston finds the cuts to IRS funding that would result from the impending sequester “Particularly Devastating” (Tax.com)
Going Concern, Former Dixon Comptroller Rita Crundwell Gets Nearly 20 Years. She stole over $50 million from an Illinois municipality of 15,000 people going back to 1990. And nobody noticed for over 20 years.
Taxpayers overwhelmed with compliance demands, asks government to slow down. IRS Overwhelmed With Refund Requests, Asks Taxpayers To Slow Down. (TaxGrrrl)
Paul Neiffer, Another Bill to Reduce Farm Payments is Introduced!
Jack Townsend, Swiss and US Sign IGA. An agreement under the “FATCA” foreign bank reporting rules.
Patrick Temple-West, Married couples face tough taxes, and more (Tax Break)
Donald Marron, The Balanced Budget Amendment’s $300 Billion Error
News you can use. Retire Rich: The Forbes 2013 Antiretirement Guide (Janet Novack)
Nick Kasprak, Happy Valentine’s Day! Will You Marry Me (For Tax Reasons?) (Tax Policy Blog).
Some people are just incurable romantics!