Posts Tagged ‘Kay Thomas’

Tax Roundup, 5/22/2013: Don’t blame me, I’m only the boss. Also: tornado tax relief.

Wednesday, May 22nd, 2013 by Joe Kristan
Former IRS Commissioner Shulman, showing how bad he feels about politcal harassment under his watch.

Former IRS Commissioner Shulman, showing how bad he feels about politcal harassment under his watch.

The Worst Commissioner Ever returned to Washington yesterday to testify before a Senate committee on the IRS scandal.  He bravely took responsibility for the targeting of disfavored political groups and apologized to the victims.

Well, not exactly:

 I certainly am not personally responsible for creating a list that had inappropriate criteria on it. And what I know, with the full facts that are out, is from the inspector general’s report, which doesn’t say that I’m responsible for that. With that said, this happened on my watch. And I very much regret that it happened on my watch.

In other words, I was just the boss, and you can’t blame me for what those crazy kids in Cincinnati do.

 

Just exercising the right they encouraged the Tea Partiers to use – silence.  The IRS functionary who announced the scandal in response to a planted question isn’t going to answer real ones.  From the Wall Street Journal:

Lois Lerner, the head of the Internal Revenue Service office that targeted conservative groups, intends to invoke her constitutional right against self-incrimination and decline to answer questions about the matter when questioned by a congressional committee Wednesday.

Ms. Lerner, director of the tax-exempt-organizations division at the IRS, notified the House Committee on Oversight and Government Reform through her attorney that she wouldn’t answer questions on the matter, according to a committee spokesman.

When it comes to the Bill of Rights, better late than never.

 

Is Washington a suburb of Cincinnati?  Oversight from Washington, All Along    (Eliana Johnson)

TaxProf, The IRS Scandal, Day 13

Watchdog.org, Top 10 quotes about Obama’s #scandalpalooza

Via Don Boudreaux, The Real Lesson of the IRS Scandal (Richard Epstein) and The Autocrat Accountants    (Mark Steyn)

Patrick Temple-West,  White House knew of IRS scandal in April, and more (Tax Break)

Clint Stretch, Targeting tax-exempts and tax reform (Tax Analysts Blog)

Joseph Thorndike, A World Without 501(c)(4)s (Tax Analysts Blog)

Russ Fox, Ms. Lerner Knows the Fifth (IRS Scandal Update)

 

In other news:

Kay Bell, Tornado-ravaged areas of Oklahoma declared major disasters, leading to special tax relief from IRS

Trish McIntire,  Oklahoma DIsaster- Tax Relief.

TaxGrrrl, IRS Announces Tax Relief For Oklahoma Tornado Victims

 

Paul Neiffer, Will Excess Farm Loss Rules Apply With New Farm Bill?

Jason Dinesen, How to Allocate the Deduction for Federal Estimated Tax Payments on Your Iowa Tax Return

Robert D. Flach, TRUE TAX TIME TALES – IRA WITHDRAWALS

 

Brian Strahle,  MARYLAND:  WYNNE CASE UPDATE

On Friday, May 17, 2013, the Maryland Court of Appeals denied the comptroller’s motion for reconsideration in Comptroller v. Wynne,  which struck down the state’s application of credits against pass through income from S corporations; however, the court stayed implementation of the ruling to allow the comptroller to petition the U.S. Supreme Court for certiorari.

Peter Reilly,  RVania Resident Taxed By New Mexico.  State tax problems of folks who live on the road.

 

Kaye Thomas,  Self-Directed IRA Implodes.  The same case I discussed here.

 

 Jack Townsend, Tax Perjury and FBAR Charges Related to Illegal Income Fake Art Case

Jim Maule, Taxation is Not Theft.  It’s not theft when the government does it.

 

 

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Tax Roundup, April 3, 2013: Six days to Iowa Tax Freedom Day.

Wednesday, April 3rd, 2013 by Joe Kristan

Tax Freedom Day for Iowans will arrive April 9, according to the Tax Foundation.  That’s nine days sooner than for the whole country.  From the Tax Policy Blog:

Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. A vivid, calendar-based illustration of the cost of government, Tax Freedom Day divides all federal, state, and local taxes by the nation’s income.

 In 2013, Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes, for a total tax bill of $4.22 trillion, or 29.4 percent of income. April 18 is 108 days, or 29.4 percent, into the year. Americans will spend more in taxes in 2013 than they will on food,  housing, and clothing combined.

You can find Tax Freedom Day for your state from this Tax Foundation Map:

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The national Tax Freedom Day is five days later than last year:

Tax Freedom Day is five days later than last year, due mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act’s investment tax and excise tax went into effect.

But cheer up!  If taxes were high enough to pay for all government spending without borrowing, it wouldn’t be until May 9.

 

TaxProf, ESPN: Athletes’ Charities Fall Short of IRS, Nonprofit Standards.  Chis Zorich might agree.  Actually, the arguments against athletes setting up their own charitable foundations are the same as those for anybody else.  They take more work and expertise to run than most people realize.  Compliance with federal tax laws and state laws can be costly.  It’s easy to get into trouble with them, like Mr. Zorich did.  It’s much wiser for athletes with a charitable interest to work with an established charity that knows what it’s doing.

 

So you owe the IRS on your 2012 return and cash is tight. What now?My new post at IowaBiz.com, The Des Moines Business Record blog for entrepreneurs.

Jason Dinesen,  Taxpayer Identity Theft — Part 14 .  The latest adventures in trying to get the IRS to pay the refund of his client, an identity theft victim, for 2010.  She may have it in “another 6-8 weeks.”  We’ll see.

 

Kaye Thomas,  Last Call for Refundable AMT Credit.  Congress didn’t extend the refundability of long-term alternative minimum tax credits, making the exercise of incentive stock options once again potetially ruinous.

TaxGrrrl,  Taxes From A To Z (2013): R Is For Recapture

 

Kay Bell, What do you plan to do with your tax refund?

Jack Townsend,  FBAR Penalty Collection — Beyond the Collection Suit, Administrative Offsets Loom Large and Long

Tax Trials:  4th Circuit: District Court Abused Discretion by Allowing Evidence of CPA’s Personal Tax Situation in Tax Shelter Promoter Case

Peter Reilly:  Lawyers Unite To Keep Dark Money Dark

Howard Gleckman,  The Economics of Corporate Rate Cuts are More Complicated than Politicians Think

 

Joseph Thorndike: Hate Filing Your Tax Return? Good.  (Tax.com).  Good for those of us who charge money to prepare returns, anyway.

 

Russ Fox,  Bozo Tax Tip #8: 300 Million Witnesses Can’t Be Right:

For a tax blogger, people like Richard Hatch are wonderful. Hatch, for those who don’t remember, was the winner of the first Survivor and won $1 million. About 300 million individuals worldwide saw Hatch take down the $1 million.

Hatch received a Form 1099-MISC for his winnings. In the United States, winnings from contests are taxable. Hatch claims that CBS and/or the producers of Survivor promised him that they would pay his taxes. (Both CBS and the producers of Survivor deny this charge.)

Of course Mr. Hatch failed to pay the taxes on income he earned in front of millions, serving a prison sentence as a result.  Sometimes watching somebody else get into real trouble can be instructive.

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Tax Roundup, 11/13/2012: What awaits at the bottom of the cliff. And carrots!

Tuesday, November 13th, 2012 by Joe Kristan

At the bottom of the cliff.  Tax Policy Blog’s  Monday Map: Tax Increase from Fiscal Cliff for Median Four-Person Family in Each State.

New Jersey gets the worst of it, while Iowa, at only 42nd place, still faces a 4.41% tax increase as a percentage of family income.  Whee!

 

Paul Neiffer,   20%/33%/45%/59% – How Much Will Your Capital Gains Rate Go Up By?!

When you fall off the fiscal cliff, you will be a bump on the road at the bottom.  Is it a fiscal cliff or merely a bump in the road? (Linda Beale)

Kay Bell,  Republican resistance to tax increase compromise crumbling?  If Republicans go along with tax increases without much larger spending cuts, they might as well sell the furniture and embrace the one-party state.

William Perez,  TIGTA Reveals Cause of Refund Delays that Occurred in Early 2012.  Thank ID theft and “Modernized E-file.”

 

But we never do it that way.  LET’S DO SOMETHING RIGHT FOR A CHANGE (Robert D. Flach):

And, as I have said over and over again, the Earned Income Tax Credit, refundable and otherwise, and refundable Child Tax Credit, which, if you call a spade a shovel, are really forms of welfare, would be better distributed via the Aid to Families with Dependent Children program – and with substantially less fraud.

But why would we want to make it hard to scam the system?

Speak for yourself!  Please Raise Our Taxes (Kaye A. Thomas)

Penalized twice:  Penalty On Qualified Retirerment Plan Withdrawal To Pay Alimony  (Peter Reilly)

TaxGrrrl, Making Sense of Income and Tax Terms

Sales tax behavioral response:  To Avoid 21% Ticket Tax, Theater Sells $16 Carrots, Gives Away Free Tickets  (TaxProf) 

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Tax Roundup, 6/20/2012: tax corruption in Quebec; grunge rock bands aren’t good at accounting.

Wednesday, June 20th, 2012 by Joe Kristan

Quebec goes third world?  Official corruption may be the biggest barrier to economic advancement in poor countries, so this news from our northern border from Russ Fox is extra depressing:

There may be some shenanigans happening north of the border. Canada’s Globe and Mail reports that the Royal Canadian Mounted Police are investigating officials at Canada Revenue Agency over a a $1 Million alleged kickback scheme. The allegations revolve around an accountant whose firms received a $10 million tax bill. CRA officials told the accountant that for just $1 million (and later, for $300,000) they could make the problem vanish.

The problems appear to be centered in Quebec, and involve the accounting, construction, and restaurant industries.

When the revenue agents are shaking you down for bribes, that’s the road to the happy world of Russia.

It’s Buzz Wednesday at Robert D. Flach’s place.  Robert offers a buffet of tax news from all over.

Jobs creation, Shulman-style: Phil Hodgen needs to hire an international tax lawyer for his firm.

Taking money from you to fund somebody else’s water heater: Iowa Now Offering a Credit for Solar Projects (Jason Dinesen)

Howard Gleckman: Listen Closely When Romney Talks About Taxes (TaxVox)

Kaye A. Thomas: Proposed Regs on Indebtedness Basis for S Corporation Shareholders

News you can use:  If You’re Planning To Send Your Business Offshore, Democrats Will Happily Tax You On The Way Out (Anthony Nitti)

Shock! A rock band had weak internal controls. Going Concern has more: Pearl Jam Had a CFO?

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