Posts Tagged ‘Jen Carrigan’

Tax Roundup, 6/25/2013: IRS says it was evil to lefties, too. And: RRTP > CPA?

Tuesday, June 25th, 2013 by Joe Kristan

20130419-1The IRS yesterday issued a new internal report showing that the hold-ups on Tea Party exemption applications continued until just now.  Tax Analysts reports ($link):

IRS Principal Deputy Commissioner Daniel Werfel told reporters that when he began his 30-day review of the agency’s mishandling of conservative groups’ exemption applications, he discovered that the exempt organizations unit was still using BOLO lists that included inappropriate or questionable criteria.

“BOLO” is “be on the lookout” lists looking for suspicious signs of political activity via the names of the organization.  These lists included “progressive” as a suspicious word, along with some right-side words, but it it appears that the left-side groups were not singled out for the “special” treatment accorded the Tea Party.

There is still a lot we don’t know about how the IRS treated the 501(c)(4) applications.  Unless we find out about left-side applications left to languish for years, like the Tea Party applications, it still doesn’t appear that IRS was evenhandedly evil.  And “they screwed some of us, too” isn’t exactly a ringing defense of the organization.

IRS, Charting a Path Forward at the IRS: Initial Assessment and Plan of Action

Kay Bell, IRS also was on the lookout for progressive tax-exempt groups

Linda Beale, To All Those Right-Wingers Complaining about IRS Targeting–guess what, they used “progressive” to help screen, too!

TaxProf, The IRS Scandal, Day 47

 

You can’t condition your conservation easement on it being deductible, says the Tax Court. (Graev, 140 T.C. No. 17).  $990,000 deduction fails.

Tony Nitti, Tax Court: Leasehold Interest Exchanged For Fee Interest In Real Estate Does Not Qualify For Section 1031 Treatment,  If your leasehold is less than 30 years, don’t expect it qualify in a swap for a fee interest in real estate.

Jana Luttenegger, Emergency Preparedness includes Safeguarding Records (Davis Brown Tax Law Blog).  “Have you thought about what records could be destroyed if a severe storm damaged your home or business?”

 

Tuesday Buzz from Robert D. FlachIt links to a new post on Robert’s “The Tax Professional” blog, where Robert asserts:

If a CPA were able to earn the designation of RTRP it would clearly identify that individual CPA as being competent and current in 1040 preparation.

False.  The now-dormant RTRP exam was a literacy test that proves tax competency in neither CPAs nor anyone else.  Robert is correct, though, when he says “A CPA is not automatically a 1040 expert, but a specific CPA may be a 1040 expert.”

I do think that CPAs who do tax work tend to be very capable, but so are many non-CPA preparers.  I think the competency curve would look something like this:

20110118-2.png

You should choose your tax preparer not just because of initials; you should find out what kind of work the preparer does.  And check references.

 

Russ Fox, FBAR Deadline Is Now.  If you haven’t sent in your FBAR, Russ shows how to e-file.

Austin John, Maryland Soon to Roll Out the Rain Tax (Tax Policy Blog)

Tax Justice Blog, Governor Cuomo, Meet Governor Brown.  “California Shows that Geographically Targeted Tax Incentives Don’t Work.”   Leave out “geographically” and it’s even better.

 

David Henderson, Atkinson and Krugman on Tax Rates (Econlog).

Jeremy Scott, Can the OECD Be Trusted on Base Erosion? (Tax Analysts)

TaxGrrrl, If It Ain’t About Money (Turns Out It Is): Rapper Fat Joe Headed To Prison For Failure To Pay Taxes

 

Breaking News from 2010:  Tax Return Fraud Spiraling Out of Control (Citizens Against Government Waste).  It’s ID theft fraud, of course.  Too bad Commissioner Shulman was busy regulating preparers and holding up 501(c)(4) applications.

Athletic ability has a weak correlation with financial ability.  Bankruptcy Rates Among Professional Athletes Need to Be Addressed (Jen Carrigan at Missouri Tax Guy)

 

 

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Tax Roundup, 5/7/2013: Impressive longevity edition. And revenge of the cat ladies

Tuesday, May 7th, 2013 by Joe Kristan

20120814-2Lauryn Hill’s parents are 150 years old!  The singer received a three-month prison sentence yesterday for failing to file tax returns, but the New Jersey native still may struggle with math, according to the reliable source of tax news, TMZ.com:

“I was put into a system I didn’t know the nature of. … I’m a child of former slaves. I got into an economic paradigm and had that imposed on me,” Hill said.

She continued, “I sold 50 million units … now I’m up here paying a tax debt. If that’s not likened to slavery, I don’t know what is.”

As slavery was eliminated nearly 150 years ago with the passage of the 13th Amendment, Ms. Hill either has difficulty with arithmetic or remarkable parents.  The slavery analogy is interesting.   So if tax is slavery, is President Obama the chief slave driver?  The IRS Commissioner? Can we be sold down the river?  To who?

Update from Althouse:

Ideas that would work perfectly well in song lyrics can sound so wrong in court. The artist describes feelings, impressionistically. It’s in no way an excuse or justification. But sometimes artists/politicos use court as a forum for expression without any expectation that it will advance their legal cause. One can intelligently and consciously eschew persuasion and victory.

Perhaps.  Still, sometimes celebrities just say strange things.

 

TaxGrrrl,  Lauryn Hill Draws Prison Sentence For Tax Evasion 

 

Russ Fox,  Reversing Two Penalties That Should Never Have Been Charged.  The IRS can’t even get its own tax filing deadlines right.  It should be fun to watch them take over the health system.

Jen Carrigan,  A Guide to Advanced Tax Terminology (Guest poster at Missouri Tax Guy)

Patrick Temple-West,  Tax rewrite favored by Republicans, and more (Tax Break)

 

After tax day, a battlefield can seem like a vacation.  A trip to Chancellorsville with Peter Reilly.

 

It’s Tuesday, so it’s Buzz day at Robert D. Flach’s place!

 

Area cat lady ridicules cat tax proposal (Going Concern)

 

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Tax Roundup, 5/2/2013: Peter Fisher takes on The Tax Foundation. And I’m a video star.

Thursday, May 2nd, 2013 by Joe Kristan
Peter Fisher

Peter Fisher

Cage Match: Iowan Peter Fisher takes on the Tax Foundation.  Mr. Fisher has written a study for Good Jobs First, a left side advocacy group.  Mr. Fisher who shows up in The Tax Update occasionally, doesn’t care for the Tax Foundation’s Business Tax Climate Index:

The TF, on the other hand, despite claims to the contrary, ignores the consensus approach to assessing business taxes in the economic literature and attempts to portray the effect of state and local tax law on business profits in an entirely different fashion: by stirring together no less than 118 features of the tax law and producing out of that stew a single, arbitrary index number. That number turns out to bear very little relationship to what businesses actually pay.

Here Mr. Fisher makes the same mistake he makes when he defends Iowa’s highest-rate-in-the nation corporate income tax, which collects very little net revenue because it clobbers some taxpayers while paying generous subsidies to the well-connected and well-lobbied.  He concludes that means Iowa’s corporation tax doesn’t matter because of the low net collection.

A good business tax climate, to the Tax Foundation, doesn’t take money from some businesses and give most of it to other businesses; good policy is based on “simplicity, neutrality, transparency, and stability.”  I agree.

As the Tax Foundation explains in its response to Mr. Fisher:

 The problem here is that we do not claim to measure business tax burdens. We measure and rank tax structures, and this because the size of a tax is less important than the economic distortions it creates. This is a fundamental error in Fisher’s understanding of tax policy.

Mr. Fisher seems more focused on “equity,” whatever that means.  But even if you think the tax law should be used to punish the rich and reward low incomes, cross-border mobility makes state tax systems an awful place to to that.

 
Tony Nitti,  Overview Of The New 3.8% Investment Income Tax, Part 3: Gains From The Sale Of Property.   Tony discusses the ridiculous proposed rules on sales of pass-through businesses, among other things.

TaxGrrrl,  IRS Rolls Out More Proposed Regulations On Health Care As “Train Wreck” Comments Continue To Make Rounds.   “Train wreck” is a term that frequently makes the rounds in the vicinity of train wrecks.  This batch of regs covers “minimum value” for determining whether coverage disqualifies individuals from premium credits.

Trish McIntire,  First Time Penalty Abatement.  The IRS will usually abate minor penalties for first-time infractions, but they don’t like to talk about it.

 

Jen Carrigan,  Should You Expect an Audit?  A guest poster at Missouri Tax Guy’s place explains the IRS exam process.

Jason Dinesen,  Another Example of a Tax Scam E-Mail.   The IRS never contacts taxpayers by e-mail.

Kay Bell,  Tax moves to make in May 2013

 

Janet Novack,  U.S. Demands Wells Fargo Records To Identify Tax Cheats Using Caribbean Havens

Cara Griffith, Feeling the Impact of Impact Fees (Tax.com).

 

Paul Neiffer,  From 80 to 45 in 40 miles.  Temperature, not speed.  I get to meet Paul tomorrow, it should be fun.

Catch a Thursday Buzz from Robert D. Flach.

 

Video!  The Iowa Bar Association now is selling DVDs of “Notes from the Fiscal Cliff,” a January webcast I did with Roger McEowen of the ISU Center for Agricultural Law and Taxation.  The outline is here. Supply your own popcorn.

 

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Tax Roundup, 1/24/2013: Tax increases for everyone, anyone? And more bad news for tax season!

Thursday, January 24th, 2013 by Joe Kristan

 

Tax Foundation graphic.

TaxProf,  NY Times: it Is Time to Raise Taxes on Everybody — Including the Middle ClassPaul Caron links to a New York Times Op-ed:

To make ends meet, both parties agree, spending must be drastically cut. Under the White House budget proposal, discretionary spending on everything except the military is projected to shrink to its smallest share of the economy since the Eisenhower administration by the beginning of the next decade. Though he has resisted Republican demands to slash entitlements, President Obama remains willing to look for further savings from Medicare.

This is not, however, the only option we have. There is an alternative: raising more money from all taxpayers, including the middle class.

Nobody wants to talk about this. … Yet Americans would benefit from a discussion of this possibility.

It’s not true that “both parties agree” that spending must be drastically cut.  It’s not clear that either party, as a whole, admits it, and at least one party remains in firm denial.  The President’s campaign was all about spending money and sending the bill to the rich guy.  Still, it’s nice that finally somebody at the New York Times admits that the rich guy isn’t buying.  He can’t.

 

Janet Novack,  As IRS Tax Filing Season Begins, Bad News For Honest Taxpayers.  She20130121-2 speaks with Taxpayer Advocate Nina Olson.  The article has some depressing truth:

Customer service at the Internal Revenue Service is dismal and deteriorating. (Only 68% of telephone callers who wanted to talk to a human at the IRS last tax filing season eached one, and then only after an average 17 minute wait.)  The epidemic of identity theft refund fraud hasn’t yet been contained.  Hope for a major reform that might simplify the tax code is waning.

The article also has some serious nonsense about last week’s ruling shutting down the IRS preparer regulation power grab:

“If the injunction stands, the taxpayers of the United States will be grievously harmed,” IRS National Taxpayer Advocate Nina E. Olson told Forbes. “The practical effect of not having some kind of consumer protection for taxpayers going to return preparers is enormous. And I say that seeing all the return preparer fraud, and the return preparer negligence, and the return preparer inadvertent mistakes that happen.”

Enormous?  More like what we did forever until two years ago.  If anybody has evidence that last year’s tax preparers were significantly more accomplished and accurate than they were before the regulations, they haven’t shared it.  And the idea that the RTRP literacy competency test and minimal CPE requirement would have changed that is silly.

Ms. Olson believes that depriving consumers of choices in preparers is in their interest because the diminished choices would be better.  That flies in the face of all we know about regulation.  The net result would be higher prices, driving more taxpayers to do their returns and driving some on the margins out of the system altogether, while sending more business to the big franchise tax prep outfits.

 

Robert D. Flach, TAX RETURN PREPARER REGULATION, LICENSURE, AND/OR CERTIFICATION.  Robert’s magnum opus on how tax preparers should be regulated.

While I agree that having the Internal Revenue Service regulate tax preparers is not the best option – it is without a doubt a far superior option to having Congress legislate regulation.  My opinion of the intelligence, competence, and ability, or rather lack of intelligence, competence, and ability, of the current members of Congress is well known.
The optimal source of tax preparer regulation/licensure/certification, whether mandatory or voluntary, would be an independent industry-based organization, not unlike the AICPA or ABA, such as the National Institute of Registered Tax Return Preparers that I have proposed.

Robert also calls me out:

As I have asked in response to Joe’s assertion, would you want a “casual” electrician wiring your kitchen, or a “casual” dentist filling a cavity, or a “casual” architect designing your home?

If I do, what business is it of anybody else?  If I want to pay a talented handyman neighbor or cousin to install a ceiling fan for me, why is it anybody’s business?  Why should he be not allowed to take my money just because he doesn’t have an electrician card from the Bureau of Electrical and Mortuary Science?  As TaxGrrrl noted yesterday, occupational licensing is taking over the economy, and that’s not a good thing.

 

TaxGrrrl, With A Week To Go, IRS Talks Opening Day and Refunds

 

Cara Griffith, Have State Income Taxes Run Their Course? (Tax.com)

The corporate income tax is inefficient and a not sufficiently stable source of revenue for states. It should be eliminated. The individual income tax is likewise not a particularly stable source of revenue for states, and while counterintuitive, progressive tax systems do not work well at the state-level. Income redistribution, to the extent that it should be a goal at all, should not be undertaken at the state-level. So  in a perfect world, yes, the state individual income tax should be eliminated as well.

Christopher Bergin agrees.

 

Good. Another bid to ban traffic enforcement cameras in Iowa. (O. Kay Henderson, via The Beanwalker).  Traffic cameras are your local government’s most sincere way of showing their contempt for you.

 

Trish McIntire,  Form 8332 and Fairness.  How the IRS enables bitter ex-spouses.

Paul Neiffer,  Why Imputed Interest Matters For 2013 (And Beyond)

Kaye A. Thomas,  Another Demutualization Case

Robert W. Wood, Golfer Phil Mickelson Is Not Alone In Fleeing Taxes (Via Kerry Kerstetter)

Peter Reilly, Why Phil Mickelson’s Remark Was Really Dumb

Brian Mahany, Is FATCA In Trouble? Unfortunately, NO

Joseph Henchman,  CBPP’s Misleading Chart on Debt Stabilization (Tax Policy Blog).  A study in cherry-picking.

Jen Carrigan, Should Capital Gains Be Taxed Differently? (Guest post at The Missouri Taxguy blog).

Patrick Temple-West,  Firms keep stockpiles of ‘foreign’ cash in U.S., and more

Tax Trials,  District Court Decision Prevents IRS from Regulating Certain Tax Return Preparers

Kay Bell,  Fiscal cliff tax provision could help stem fraudulent refund claims by prisoners

 

News you can use:  Passing the CPA Exam While Billing Over 2500 Hours in a Year Is Way Harder Than Having a Baby(Going Concern).  Also less useful and not as smart.

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