Posts Tagged ‘James Taranto’

Tax Roundup, 2/15/16: President’s Day. Bah. Humbug. And more Monday news!

Monday, February 15th, 2016 by Joe Kristan

20160215-1Today is President’s Day. I don’t care to honor presidents, as a class. They range from remarkable to vile, and they are in the end, just men with a job and great responsibility, often exercised badly.

It seems as good a day as any to ponder a well-buried scandal of the current presidency, the Tea Party scandal. It came to light with a staged admission by Lois Lerner that Tea Party groups had been singled out for special treatment” by the IRS. The admission was intended to get in front of an Inspector General report exposing the partisan mistreatment.

Peter Reilly has followed it closely, from a viewpoint more sympathetic to the IRS than mine. He recently mused, in a post on Day 1000 of the scandal:

The narrative that seems most plausible to me is Lois Lerner as the Agent From Hell.  AFH is my term for a certain type of IRS agent that I have thankfully only encountered a couple of times in my career.  AFH is not that technically astute, but AFH is dogged.  And AFH is certain that your client is up to no good.  AFH just hasn’t quite figured out what that no good is.  That was Lois Lerner and the Tea Party applications, only she had to do her work through minions.  Lois Lerner was passionate about the dark money issue and nobody else seemed to care. So she tortured her line agents to get them to torture bewildered applicants who were already pumped up on conspiracy theories. A perfect storm of bureaucratic bumbling coming across as brilliantly subtle conspiracy.

Toby Miles, IRS.

Toby Miles, IRS.

It was never realistic to think the scandal would bring down the administration, considering how carefully the media cheerleaders avoided the subject. But the lack of presidential involvement only leads to a more disturbing conclusion, one I discussed way back when the scandal was only in single digits:

I doubt the White House left fingerprints on IRS efforts to harass political opponents (though it didn’t lift a finger to stop it).   That leads to an even more depressing possibility: that the IRS went out its way to beat up on the President’s opponents on its own.  Nobody blew the whistle.  That means IRS management is so corrupt and political that it would go after the administration’s political opponents with only a wink and a nudge.  And anybody who doesn’t think this was politically-motivated is kidding themselves.

James Taranto puts it well:

And the IRS scandal was a subversion of democracy on a massive scale. The most fearsome and coercive arm of the administrative state embarked on a systematic effort to suppress citizen dissent against the party in power. Thomas Friedman is famous for musing that he wishes America could  be China for a day. It turns out we’ve been China for a while.

The self-weaponization of the bureaucracy against its political opponents is hugely depressing. The government workforce is overwhelmingly on the side of the political party that favors an ever-larger state. There are plenty of Lois Lerners in the IRS and throughout the Leviathan. The Tea Party scandal, and the complete lack of accountability for its perpetrators, gives no reason to hope those who don’t share that worldview can expect a fair shake. That’s especially true when the sitting president shows no interest in discouraging such behavior.

 

20150215-2

 

Arnold Kling, David Brooks Sends a Valentine. “Brooks claims that the Obama Administration was scandal-free. I think it was more of a case that the mainstream press had his back. Could George Bush have survived the IRS scandal?”

David HendersonIs David Brooks Right about Obama? (Econlog):

But that’s not the worst. Among the worst is his administration’s use of the Internal Revenue Service to go after Tea Party groups. After claiming in May 2013 that any IRS targeting of political groups, if true, was outrageous and that he would hold the relevant people accountable, he has not. Lois Lerner has not been charged. That’s a scandal. It’s true that the scandal did not swallow years from Obama. Is the relevant criterion for a scandal whether it uses up a president’s years or whether the president’s employees use their discretionary power to go after political scandals? If the former, then a president can avoid a scandal by being evasive and shifting the topic, as Obama has done. That’s not integrity, by the way.

And it was true. Whether you believe the IRS was told to do it, or whether you believe the bureaucracy took it on itself to pursue ideological enemies, it was a dangerous ideological abuse of the tax agency that is going unpunished.

TaxProf, The IRS Scandal, Day 1010Day 1011Day 1012. Don’t recall major network coverage of the scandal? Day 1011 says that it’s not because you weren’t paying attention.

 

William Perez, Understanding Form W-2, the Annual Wage and Tax statement. “An overview of common problems with Form W-2, Wage and Tax Statement, plus a description of various items, codes and amounts shown on Form W-2.”

Annette Nellen, Video – What’s New for 2016 Filing Season

Jason Dinesen, When Are Purchases Made With a Credit Card Deductible?

Kay Bell, ‘Pharma bro’ Martin Shkreli facing $4.6 million tax lien

Jim Maule, Relying on Incorrect IRS Advice Spares Taxpayer Penalty. “The question of how to deal with incorrect advice from IRS employees has befuddled the tax practice community for decades.”

Robert Wood, Atkins Doctor Tax Evasion Conviction Upheld (How Not To Deal With IRS). Sometimes bad examples are the most useful ones.

Russ Fox, North Carolina Added to Bad States for Gamblers. “There’s no longer a deduction for gambling losses, so an amateur gambler residing in North Carolina who has $100,000 of wins and $100,000 of losses owes tax on the $100,000 of wins.”

TaxGrrrl, On Valentine’s Day: Getting A Tax Break After The Big Break-Up. “A Sarasota area Goodwill has your answer: make yourself feel better by donating your ex’s stuff to charity.” Well, compared to leaving it on the curb for the garbage man, it has its attractions.

20150215-3

Tyler Cowen, Do higher marginal tax rates reduce income mobility? Marginal Revolution). “The idea that taxes matter is making a comeback in economics, though I am not sure you would get that impression from most of the economics blogosphere.”

Joseph Henchman, Justice Scalia’s Legacy and What Happens Next (Tax Policy Blog).

Don Boudreaux, Evidence that Donald Trump Is As Ignorant of Economics As Is Bernie Sanders (Cafe Hayek). File under “longest books ever written.”

Scott Greenberg, Checking Bernie Sanders’s Math (Tax Policy Blog). “However, under the Sanders tax plan, households in the middle of the economy would also be subject to two new indirect taxes: a 6.2 percent payroll tax paid by employers (for healthcare) and a 0.2 percent payroll tax paid by employers (for family leave). Virtually all economists agree that, even though payroll taxes are remitted to the government by employers, the burden of the payroll tax is born entirely by wage earners.”

 

News from the Profession. The ‘Everyday Jeans’ Policy Backlash Has Begun (Caleb Newquist, Going Concern).

 

Share

Tax Roundup, 9/3/15: How to cut the IRS in on your foreign inheritance. And more!

Thursday, September 3rd, 2015 by Joe Kristan

20150903-1Uncle Heinrich from the old country left you a bundle. Congratulations! Make sure to tell the IRS.

Why, you ask, should I tell them? Inheritances are tax-free, after all.

Well, yes. But the IRS still wants to know about them. And if you don’t tell them, you may be cutting the IRS in on 25% of the gift.

The tax law requires you to file Form 3520 to report gifts or bequests from a foreign source if they exceed $100,000 (or $13,258 if received from a foreign corporation or partnership). This return is due at the same time as your income tax return, including any extensions, but it is filed separately. The penalty for not reporting is 5% of the unreported amount per month, up to 25%.

What if Uncle Hans gives you $75,000, and his wife Aunt Anne-Sophie gives you another $75,000? Then the gifts are counted together and exceed the reporting threshold.

I will be talking about these and other easy-to-overlook  international reporting requirements that can arise in estate planning and administration at the ISU Center on Agricultural Law and Taxation September Seminars. They are September 17 (Agricultural Law Seminar) and September 18 (Farm Estate and Business Planning Seminar). My talk is on the 18th.  Register by September 10 for an early-bird discount!

 

20150903-2Robert D. Flach, AICPA CONTINUES TO PROMOTE THE URBAN TAX MYTH. “There is absolutely nothing about possessing the initials CPA that in any way, shape, or form guarantees that the possessor knows his or her arse from a hole in the ground when it comes to 1040 preparation.”

TaxGrrrl, Owner Of ITS, Formerly Fourth Largest Tax Prep Biz In Country, To Face Criminal Charges. “Readers sent me numerous emails advising that ITS was still in business for the 2014 tax season, despite the court order.”

Robert Wood, Report Cites Flawed IRS Asset Seizures, And Ironically, Sales Are Handled By ‘PALS’

Kay Bell, Tax moves to make in September 2015. Worth visiting for the accompanying autumn leaves picture alone, but lots of other sound advice too.

Stephen Olsen, Summary Opinions for August 1st to 14th And ABA Tax Section Fellowships (Procedurally Taxing). Recent happenings in the tax procedure world.

Jack Townsend, Ninth Circuit Affirms False Claim Convictions for Tax Preparer. “The false claims statutes involved, however, are not complex statutes.  All that is required is that the defendant know that the claims are false.”

Annette Nellen, 50th Anniversary of Willis Commission Report. “This is likely the most comprehensive study and report ever done on state and multistate issues covering income tax, sales and use tax, gross receipts tax, and capital stock tax.”

 

20150903-3

 

Scott Greenberg, Every Tax Policy Proposal from the 2016 Presidential Candidates, in One Chart (Tax Policy Blog). “While some presidential candidates have issued tax reform proposals that touch on almost all of these areas of the tax code, other presidential candidates are not listed as having offered any tax policy proposals at all.”

Renu Zaretsky, The Case of the Unreturned Call for Tax Code Simplicity (TaxVox)  “Are taxpayers clamoring for a simpler, faster, and cheaper filing experience? Well, they are, and they are not.”

Richard Phillips, Ben Carson’s 10 Percent Flat Tax is Utterly Implausible (Tax Justice Blog)

TaxProf, The IRS Scandal, Day 847. Today’s installment links to an update on the status of the scandal by James Taranto of the Wall Street Journal: “In any case, it’s unreasonable for government officials to expect us to trust their assurances when they take such pains to prevent their verification.

 

News from the Profession. Here’s a Guy Wearing a PwC T-Shirt Giving Weird Street Massages (Caleb Newquist, Going Concern)

 

Share

Tax Roundup, 3/3/15: ‘Tens of thousands’ of returns delayed by ACA. Also: Feds, Iowa provide partial deadline relief for farmers.

Tuesday, March 3rd, 2015 by Joe Kristan
Taxpayer Advocate Nina Olson

Taxpayer Advocate Nina Olson

Tax season is saved! Tax Analysts reports ($link) that the IRS is sitting on “tens of thousands” of returns affected by the Obamacare advance premium tax credit:

Speaking March 2 in Washington at an American Payroll Association event sponsored by Bloomberg BNA, Olson said the returns have been “held for quite a long time, since the beginning of the filing season,” because the IRS is still waiting for matching data from state health insurance exchanges. The returns are being held in suspense and the IRS has instructed its employees not to inform taxpayers why their return is being suspended when the taxpayer contacts the Service, she said.

According to Olson, the Taxpayer Advocate Service will not follow the IRS’s instructions to remain silent on the issue because taxpayers have the right to be informed under the taxpayer bill of rights.

More of Commissioner Koskinen’s famous committment to transparency and disclosure. But all is well, right?

Olson said her office has received days of training on the ACA so her employees are prepared when these cases come in. “I think this is one of the most complicated provisions that we’ve ever inserted into the Internal Revenue Code” and I’m “astonished at the complexity of it,” she said.

“I’m very concerned about the filing season,” Olson said, adding that the federal exchange has already sent erroneous reporting information to 800,000 taxpayers.

Just yesterday the IRS, on the due date for farmer and fisherman returns where no estimated tax was paid, waived estimated tax penalties for such taxpayers where they are still waiting on 1095-A forms from their healthcare exchange. This follows the universal waiver of late payment penalties for amounts owed on the advance premium credit, the waiver of ACA penalties on health insurance premium reimbursement plans, and the last-minute waiver of Form 3115 requirements for smaller businesses under the repair regs. It’s an overwhelmed IRS desperately patching up a failing tax season with duct tape and wire.

 

binFeds extend 1040 deadline to April 15 for farmers awaiting form 1095-A; Iowa extends deadline to April 15 for all farmersFarmers are eligible for a special deal that lets them not pay estimated taxes, as long as they file and pay the balance due by March 1. The deadline was yesterday because March 1 was on a Sunday this year.  As we reported yesterday, the IRS issued a last-minute waiver of the deadline for farmers still awaiting their Form 1095-A from an ACA exchange.

Yesterday Iowa followed suit. The Iowa Department of Revenue sent this to practitioners on its email list (I can’t find a link on the Department website; the emphasis is mine):

The Iowa Department of Revenue has granted an extension to all farmers and commercial fishers to file 2014 Iowa individual income tax returns without underpayment of estimated tax penalty.

If at least 2/3 of their income is from farming or commercial fishing, taxpayers may avoid penalty for underpayment of 2014 estimated tax in one of the following ways:

(1) Pay the estimated tax in one payment on or before January 15, 2015, and file the Iowa income tax return by April 30, or

(2) File the Iowa income tax return and pay the tax due in full on or before March 2, 2015.

The issuance of corrected premium tax credit forms (Form 1095-A) from the Health Insurance Marketplace may affect the ability of many farmers and fishers to file and pay their taxes by the March 2 deadline.

Therefore, any farmers or fishers who miss the March 2 deadline will not be subject to the underpayment of estimated tax penalty if they file and pay their Iowa taxes by April 15, 2015.

The Iowa relief is not limited to farmers awaiting a 1095-A. The slightly tricky thing: non-farmer Iowa 1040s are due April 30, but the new farmer deadline is April 15. Be careful out there.

Related: Paul Neiffer, IRS Has Impeccable Timing (As Usual)

 

 

W2All is well.  Tax Analysts reports ($link) Additional Medicare Tax Reporting Is Causing Problems. It quotes Paul Carlino, an IRS branch chief:

Carlino explained that reporting amounts in Form W-2 box 6 that do not equal the 1.45 percent tax on wages has caused confusion among taxpayers, some of whom seek refunds believing their employer withheld an incorrect amount of tax.

Carlino said that another problem is taxpayers who are not having the additional Medicare tax withheld. 

The Additional Medicare Tax is unique among federal payroll taxes in that it is computed at separate rates for married and single filers, requiring a reconciliation on the 1040. That can result in underwithholding.

 

Russ Fox, Don’t Call Us:

When I called today I reached the normal recording, but every time I attempted to obtain help for an individual not in collections (that’s one of the options when calling the PPS) all I got was, “Due to extremely high call volumes that option is not available now. Please try your call again later.”

Well, the IRS has other priorities than your silly tax return, peasant.

 

TaxGrrrl, Tax Checks Go Up In Flames After Mail Truck Burns. Sums up this tax season.

Robert Wood, Obama Immigration Fix: 4M Illegals Who Never Paid U.S. Tax, Get 3 Years Of Tax Refunds. Only about 25% of EITC payments are made improperly. What could possibly go wrong?

William Perez, Moving Expenses Can Be Tax-Deductible

Kay Bell, Jeb Bush reportedly won’t sign no-tax pledge

Soon, my precious, soon.

Soon, my precious, soon.

Peter Reilly, Lois Lerner Out From Under Freedom Path Lawsuit For Now

TaxProf, The IRS Scandal, Day 663, quoting James Taranto from the Wall Street Journal: “So the IRS admittedly denied tax-exempt status improperly to at least 176 groups, tried to apply extralegal restrictions to others, and is still delaying approval for those groups that have gone to court in an effort to vindicate their rights.”

 

Alan Cole, How to Dismantle an Ugly IRS Worksheet (Tax Policy Blog):

The difficulty of the worksheet is not the fault of the IRS. If anything, the IRS put a very difficult concept into a one-page worksheet. But even with the worksheet’s good design, it’s still 27 lines. That’s because the underlying tax code it deals with is not elegantly designed.

The post goes on to explain how our system of taxing corporation income twice leads to this complexity.

 

Martin Sullivan, High Hopes for Highway Funding: A Bridge to Nowhere (Tax Analysts Blog). “Congress is talking a lot about long-term solutions to our infrastructure funding problem, but will likely only do another short-term patch.”

IMG_1217

Renu Zaretsky asks Can Expectations Be Too Low? In today’s TaxVox headline roundup. (No, by the way.). The post addresses the low IRS audit rate for businesses, the IRS plan to issue retroactive earned income tax credit to beneficiaries of the executive amnesty for illegal immigrants, and the upcoming Supreme Court arguments in King v. Burwell on whether the IRS exceeded its authority in granting ACA credits in states that didn’t set up exchanges under the act. 

 

Career Corner, Here Are Some Coded Phrases You Will Hear During Busy Season (Andrew Argue, Going Concern)

 

Share

Tax Roundup, 9/23/14: Lois Lerner interview goes over… not well. And: Inversion action!

Monday, September 22nd, 2014 by Joe Kristan

man-wichLois Lerner’s interview with Politico published yesterday got some reaction. The Tax Prof has a great roundup in The IRS Scandal, Day 502, including these wonderful headlines:

American Thinker:  Politico Does Weepy Story About Poor Lois Lerner

PJ Media:  Politico Disguises A Slobbering Love Letter To Lois Lerner As An Interview

Breitbart:  News Site Seeks Mutually Beneficial Exclusive with Former IRS Exec (Must Love Dogs)

And my favorite:

Daily Caller:  Lois Lerner Compares Herself To Jeffrey Dahmer

So Tea Party-friendly web sites were not won over, apparently.  Some other reaction:

 

Instapundit:

LOIS LERNER TOOK THE FIFTH, but now she’s telling Politico that she did nothing wrong, and that she’s the real victim here. And note the prominent play Politico gives to alleged anti-semitic epithets, and to Lerner’s brownie-baking. So why the media-rehab operation — and that’s what this is — and why now?

But it’s nice to hear that even the Washington revolving-door apparat finds her “untouchable.” Perhaps that’s because nothing much in this story suggests that she didn’t target Tea Party groups for partisan political reasons.

 

David Hirsanyi, Sorry, Politico, But Lois Lerner Is Not A Victim:

 She has already admitted and apologized for the practice of targeting conservatives groups with terms like “Tea Party” or “patriots” in their titles. She claims that it was done in an effort to deal with the surge in applications for tax-exempt status asking for permission to participate in the political process. Yet, she didn’t aim at groups with the “climate change” or “fairness” in their names to mitigate this alleged crush of work she was facing.

Peter Suderman, Unapologetic Lois Lerner Insists She’s Done Nothing Wrong (Reason.com):

Lerner thinks she did nothing wrong, and she won’t apologize. “Regardless of whatever else happens, I know I did the best I could under the circumstances and am not sorry for anything I did,” she said in an interview with the paper.

That’s basically all she says about her role in the scandal. Lerner, who, after reading a statement, exercised her Fifth Amendment right to avoid self-incrimination when called to testify before Congress last year, doesn’t really add anything to her defense with the statements in her piece. She declares that she stands by her work—and that’s it.

And James Taranto reports “Politico landed an exclusive interview with Lois Lerner, the former IRS official at the center of the still-unresolved scandal, and to call it a whitewash would be an insult to lime.”

I think we can safely say of this PR stunt, so far, not so good.

Prior Tax Update coverage: Lerner speaks, sort of. And: a federal tax amnesty?

 

No Walnut STTreasury “does something” about inversions.  The moral panic over inversion transactions took its next logical step when the Treasury announced it would issue regulations out of nowhere to “crack down” on corporations trying to escape our awful U.S. corporation income tax. Notice 2014-52 has the technical details.

The Treasury has previously issued such notices, generally describing future regulations, when it is in a hurry to stop some kind of transaction and doesn’t want to wait for the usual regulation comment period to “do something.”

The Wall Street Journal explains the rules in general terms:

The Treasury rules will make it harder for companies that invert to use cash accumulating abroad—a big draw in recent deals. In addition, the government has made it more difficult to complete these overseas mergers.

The tax changes took effect immediately, officials said, and applied to all deals that hadn’t closed by Monday.

The article addresses how the deal might affect pending deals: (I removed the WSJ’s obligatory stock price info):

The new guidelines could impact a number of pending mergers and acquisitions, including Medtronic Inc. s proposed acquisition of Irish medical-device maker Covidien PLC; Salix Pharmaceuticals Ltd.’s acquisition of a division of Italy’s Cosmo Pharmaceuticals SpA; and Mylan Inc.’s  pending deal for Abbott Laboratories overseas generics business. It could also interfere with the merger of fruit grower Chiquita Brands International Inc. and Fyffes PLC.

Less clear is how it would impact Burger King Worldwide Inc. BKW -0.48% ‘s proposed acquisition of Canadian coffee-and-doughnut chain Tim Hortons Inc., THI.T +1.92% a deal that was designed to move the new corporate headquarters to Canada. 

That deal is structured somewhat differently, and experts disagree whether it would be affected by the new government rules. Most agree the rule changes aren’t likely to end inversions altogether.

Of course it won’t. As long as the U.S. has an uncompetitive business tax climate — better only than France and Portugal in the developed world — corporations will be forced to seek self-help, like inversion deals.

Tax Analysts has a story about how the last round of inversion rules created dangers for corporations who aren’t even inverting ($link): “The existing anti-inversion rules under section 7874 create several traps for foreign companies and individuals that could cause transactions to be treated as inversions when no inversion has taken place.”

Unintended consequences result, traps are created for the unwary, and the awful U.S. corporation income tax gets a little worse. Well done, Jack Lew!

The TaxProf has a roundup.  Howard Gleckman asks Does Treasury Have the Legal Authority To Curb Tax Inversions? (TaxVox): “This issue is the subject of heated debate among tax lawyers.”

 

 

buzz20140923Robert D. Flach brings the Tuesday Buzz, including links to posts covering ground from tax holidays to How Does a Sole Proprietor Get Paid?

TaxGrrrl, Back To School 2014: Moving Expenses

Tony Nitti, Tax Court: Anxiety, Depression Are Not Physical Injuries

Russ Fox, They Both Begin With “E”. Embezzlement, evasion. Add another: eventually detected.

Kay Bell, Identity theft tax refund fraud is increasing, but ways to prevent the crime are not likely to be popular

Jason Dinesen, Entrepreneurial Maturity. “In other words, a business owner who has entrepreneurial maturity knows what they don’t know.”

Annette Nellen, Points from your bank. On the “frequent flyer miles” Tax Court case.

Steven Olsen, Summary Opinions for 9/12/14 (Procedurally Taxing). Rounding up recent developments in tax procedure.

Jack Townsend has some Comments on the Warner Sentencing Oral Argument: “The panel was also concerned that, if Warner’s conduct were so bad, why did the Government argue at sentencing for only a sentence of 1 year and 1 day when the Guidelines range was significantly higher.”

 

20140923-1Alan Cole, The U.S. Tax Code is its Worst Competitive Weakness (Tax Policy Blog). “Simply put, while assessments of the U.S. tax code – both at Tax Foundation and elsewhere – are bleak, there is much to be optimistic about in America.”

Martin Sullivan, Should We Give Up On Reagan Style Tax Reform? (Tax Analysts Blog) “The landmark 1986 Tax Reform Act is an inspiration to all would-be tax reformers. But reforms following that basic framework have gotten nowhere in Congress.”

Steve Warnhoff, The Estate Tax Is Not Doing Enough to Mitigate Inequality: State-by-State Figures (Tax Justice Blog). It’s not working, so lets do it more, harder!

Share

Tax Roundup, 9/20/2013: Dressing up your tax return. And look out, Ethiopia!

Friday, September 20th, 2013 by Joe Kristan
"Garcia" character in "Criminal Minds," via Wikipedia

“Garcia” character in “Criminal Minds,” via Wikipedia

I can’t prove my deductions, but you should allow them because I’m sure I have them, and it’s not that much in the big scheme of things.   An actress took a novel approach to convince the Tax Court to let her deduct clothing, makeup and other items that she said were business expenses in her acting career:

 Instead of relating particular exhibits to particular deductible categories in her brief, she repeated her claims that all of the disputed expenses were related to her employment and supported by the disorganized documents. She did not respond to respondent’s specific analysis of the documents and explanation of the applicable Code sections. Overall petitioner argues that she should be given special leeway because she obviously incurred deductible expenses and the amount of the deficiency is small.  

Cut me a break, what’s my little deficiency to a trillion-dollar deficit?  The court was unconvinced.  With respect to her deductions for clothing and makeup, the court noted:

Petitioner resided in California when she filed her petition. During 2009, petitioner was an actress, a writer, and a college student. She was a stand-in for a character known as Garcia on the television show “Criminal Minds.”

Petitioner also claimed as business expenses items including makeup and beauty expenses, wardrobe expenses, and laundry and cleaning expenses. She claims that these expenses were necessary because of the unique dress and makeup of the character Garcia.

Expenses relating to clothing, dry cleaning, and personal beauty items are deductible only if they are “not suitable for general or personal wear and not so worn”. Yeomans v. Commissioner, 30 T.C. 757, 767-769 (1958). Neither petitioner’s records nor her testimony tied specific items of expense to the type of clothing and related items that would not be suitable for everyday wear. To the extent that items cannot be tied to petitioner’s job with “Criminal Minds”, her arguments about the uniqueness of Garcia are not persuasive.

The moral?  Unless you have to buy a uniform, it’s hard to deduct clothes, as TV anchor Anietra Hamper learned the hard way.  And whatever you deduct, you need to have some way to support the deduction.  The argument that your small deduction is immaterial in the big scheme of things doesn’t work well.

Cite: McGovern, T.C. Summ. Op. 2013-74

 

James Taranto, who runs the Wall Street Journal’s “Best of the Web” feature (with a format suspiciously like the Tax Update’s Tax Roundup), has some good observations on the evolution of the IRS Tea Party scandal.  He suggests how the agency could come to target the President’s political opponents without anybody having to tell them to do so:

The memo presents no evidence that the White House directly ordered the IRS to crack down on political opponents. Instead, it is consistent with the theory, described here in May, that IRS personnel responded to “dog whistles” (in Peggy Noonan’s metaphor) in public statements from the president and his supporters.

That’s much more depressing than if the White House had issued such orders.  That means the problem is part of the IRS culture, making it very difficult to fix.

TaxProf, The IRS Scandal, Day 134

Eliana Johnson, Senior Treasury Department Officials Knew of IRS Targeting in Spring 2012, Documents Suggest

 

Tony Nitti, One Mortgage, No Home Equity Loan: How Much Interest Can You Deduct?

TaxGrrrl, Forget Kiddie Tax, New Senate Proposal Would End ‘Parent Tax’

 

20130920-2

Haile Selassie, Emperor of Ethiopia

William McBride,  World Economic Forum: U.S. Still Sliding (Tax Policy Blog):

America’s least competitive areas include taxes and government debt. The U.S. ranks 69th, right behind Ethiopia, in terms of the impact taxes have on incentives to work and invest. The U.S. ranks 103rd of 144 countries in terms of the total tax rate as a percent of profits.

 Look out, Ethiopia.

 

Tax Justice Blog, Stop Tax Haven Abuse Act Would Curb Some of the Worst Multinational Corporations’ Tax Dodges.  This would be less of a problem if the problems noted in the previous item were addressed.

Elaine Maag, Senator Lee’s New Reform Plan Focuses on Young Children (TaxVox)

Andrew Lundeen, Roughing the Passer: Congress Won’t Find Much Revenue from Taxing the NFL (Tax Policy Blog)

Jack Townsend, Atypical Offshore Account Plea for Art Dealer

Leslie Book, Remands and the Nature of CDP Hearings (Procedurally Taxing)

 

Robert D. Flach has a mighty “meaty” Friday Buzz!

The Critical Question: Did Tax Court Just Say That There Are Thousands Of Unfiled Oil Partnership Returns ?  (Peter Reilly)

News from the profession: Accountants Love Their Jobs Because They Get to Manipulate Numbers All Day Long, Says Guy (Going Concern)

 

Share