Thought the IRS scandal was dead? IRS Inspector Firm on One-Sided Targeting; Small Number Faced Extra Scrutiny, While All Tea-Party Applications Were Reviewed (Wall Street Journal):
Internal Revenue Service employees flagged for extra scrutiny fewer than a third of progressive groups applying for tax exemptions from mid-2010 through mid-2012, compared with 100% of conservative applicants, an IRS inspector general said.
The new data, released in a letter to Democratic lawmakers that was dated Wednesday, appear to support Republicans’ contention that conservative groups were subjected to more IRS scrutiny, and undercut Democrats’ case that the IRS treated left-leaning and right-leaning groups similarly.
TaxProf, The IRS Scandal, Day 50
Christopher Bergin, Get to the Bottom of It (Tax Analysts Blog)
Clearly, there is a problem at the IRS, a serious one. And that does not just apply to exempt organizations, which, frankly, have always been the third rail of national tax administration. What’s going on is not funny or entertaining. What’s going on means the country is in trouble.
While I am more easily entertained then Christopher, I agree with his conclusion.
David Cay Johnston, Revelations Show Lois Lerner Blew It (Tax Analysts Blog)
This seems to me to be a very very bad idea. Creating payments for jobs not perfectly done implies a perfection that simply isn’t achievable in large institutions with multi-faceted functions.
OK, fine — but if it’s not achievable for a giant institution with enormous resources and all the time in the world, maybe it’s not achievable for small institutions with with “multi-faceted functions” and far fewer resources under severe time constraints — like your average business or your local Tea Party run by activists in their free time. Maybe the IRS shouldn’t so routinely assert penalties on audit deficiencies. Until they stop, though, I say sauce for the goose, sauce for the gander.
Remember when the state-run Iowa Cable Network was going to make Iowa the cutting edge tech state? Iowa tries to sell ICN, but gets bids from only one prospect (Thegazette.com, via Gongol)
More DOMA demise fallout
Margaret Van Houten, Tax Implications of DOMA Ruling (Davis Brown Tax Law Blog)
Peter Reilly, DOMA Decision May Affect Civil Unions
In other news…
Trish McIntire, Amortizing Your Life:
I get asked occasionally if a client can take the value of their time as a deduction. They’ve done the repairs on a rental house themselves and they want to deduct what they would have paid someone else to do it or they have worked for a charity and would like to use their time as a charitable deduction. Of course, the value of one’s time is not deductible.
Philip Hammersley, Elizabeth Malm, Pennsylvania’s Family Business Death Tax on Life Support (Tax Policy Blog)
Howard Gleckman, Can The Baucus-Hatch Blank Slate Plan Jump Start Tax Reform? (TaxVox)
Robert D. Flach is ready with your Friday Buzz!
Going Concern, Oregon Department of Revenue Sensitive to the Fact That Some Religious Groups Think Filing Tax Forms Electronically Is of the Devil. There are days when I think that’s right if you leave the word “Electronically” out.
It looks like I have to update my blogroll for Megan McArdle for what — the fifth time? But Megan was one of the first economics bloggers, and she’s well worth following to her new blog home.