Posts Tagged ‘maule’

Tax Roundup, 7/22/2013: More fertilizer! And how to finance your party, the tax grifter way.

Monday, July 22nd, 2013 by Joe Kristan
Via Wikipedia

Via Wikipedia

More taxpayer fertilizer.  Iowa board OKs additional $25M in tax credits for Orascom.  (Quad Cities Times):

The unanimous vote by the board on Friday makes a total of $82.5 million in state tax credit benefits available to Orascom Construction, parent of the Iowa Fertilizer Company.

The $1.8 billion plant is expected to employ as many as 165 workers when completed.

In case you’re wondering, that’s about $500,000 per “permanent job.”  That assumes that the money is actually buying jobs, but the plant almost certainly was going to be built in Iowa without the subsidies.  The $82.5 million only buys politicians press conferences, ribbon cuttings and silver souvenir shovels, with our money.

 

TaxProf, Faber:  ‘Ivory Tower’ Economists Are Wrong: Taxes Play Major Role in Wealthy Fleeing High-Tax States:

Amy Hanauer and Tim Krueger argue that taxes play no role in taxpayer decisions to move from one state to another (The Tax Flight Myth: People Move for Jobs and Family, Not Taxes,  State Tax Notes, July 8, 2013, p. 97 … ). Their conclusions are apparently based on empirical studies and computer models. They are wrong. Based on my experience as a practitioner who works with wealthy individuals and corporations every day, I can assure you that taxes often play a major role in these decisions and that in many cases, they are the sole reason for the move.

That’s right, in my experience.  Taxpayers absolutely take taxes into account when they move, even if it’s hard to isolate in aggregate data.  Tax aren’t everything, but they are definitely something.

Kim Reuben, Detroit’s bankruptcy: What does it mean for other cities? (TaxVox)

Russ Fox, The Flow of AGI from One State to Another

 

Jason Dinesen, Tax Aspects of Renting Your Home for a Day or Two.  Taking in RAGRAI riders can give you some tax-free income.

Robert D. Flach, KEEPING A CONTEMPORANEOUS MILEAGE LOG.  If you want to deduct your mileage, you need to keep your log up to date.

 

Tyler Cowen, Wealth Taxes: A Future Battleground.  Just another way for politicians to cover their profligacy.  Via Arnold Kling, who has more.

TaxGrrrl, Rather Than Tackle Tough Tax Reform, Congress Focuses On The Death Tax. Again.

Kay Bell, The U.S. tax system is not very attractive

William McBride, American Corporations Losing Ground (Tax Policy Blog):

The U.S. corporate tax is the most punitive in the developed world, not just because the statutory corporate tax rate is the highest but also because the effective corporate tax rate is the highest or nearly the highest according to recent studies

TaxProf, The IRS Scandal, Day 74.

 

Tax offender of the year nominee.  I no longer choose a Taxpayer of the Year, but Russ Fox still “honors” a “tax offender of the year.”  I hope he will consider Ayawna Webster, former president of the D.C. Young Democrats and staff aide to a D.C. City Council Member, Harry Thomoas Jr.  The Washington Post reports:

The former chief of staff to one-time D.C. council member Harry Thomas Jr. pleaded guilty Friday to falsifying tax documents in connection with payments for a 2009 political ball…

 According to court documents, [non-profit chief Millicent] West worked with Thomas and Webster to send trust money intended to pay for youth programs to help cover the cost of the party.

Just when you think politicians can’t come up with ways to make you think less of them, they come through.  Looting a fund for poor kids to pay for a “political ball” is notably evil.

 

Brian Mahany, Business Owner Pleads to Hiding Offshore Account

Jack Townsend, Liechtenstein Bank In U.S. Cross-Hairs

 

A video report on Rashia Wilson’s sentencing

She had a sixth-grade education and stole millions from the taxpayers.  When that can happen — over and 0ver – there just may be a problem with IRS controls over refunds.

 

The Critical Question.  Lap Dance Tax?  (Jim Maule)

News you can use.  The Data on Bar Fights (Freakonomics Blog)

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Tax Roundup, July 15, 2013: The IRS isn’t a payday-lending company.

Monday, July 15th, 2013 by Joe Kristan

Federal_Bureau_of_Prisons_Seal.svgDon’t think of it as borrowing money from the government.  They don’t look at it that way.  An Iowan has pleaded guilty to criminal charges for failing to remit payroll taxes withheld from employees.  The AP reports that Eric Holub, a Cedar Rapids man, admitted to not remitting withheld taxes from employees of his private security firm.

He may face prison time. It can be tempting to not remit payroll taxes when your vendors want to be paid.  Sometimes employers rationalize it as “borrowing” that will be repaid someday, somehow.  As this case shows, it can be a very expensive “loan.”

Link: Copy of Indictment.

 

Kay Bell,  Monday, July 15, is filing deadline for Boston area taxpayers

 

Penalty declined.  No jail time for Zorich (Chicago Sun Times, via Going Concern).  The former Chicago Bear and Fighting Irishman gets fines, probation for failure to file.

Russ Fox,  Microsafted to ClubFed.  No, that’s not a typo:

Matthew Taylor is heading to ClubFed for a 7 1/2 year of  vacation from
his previous job as an art thief and tax evader.  It’s what he did to
try to hide his crime that makes this case interesting…

What did he do to hide his income?  He used false social security numbers to hide money in bank accounts, he used multiple post office boxes to open other post office boxes, and he sent money to an offshore account.  Those are typical strategies.

It’s a couple of other things he did that grabbed my attention.  He set up phony companies with names similar to other companies (Microsaft, anyone?).  He blamed his mother for all his bank accounts and tax troubles…even though she was in failing health.

Well, at least he won’t have to talk to Mom at awkward family dinners for awhile.

 

Jason Dinesen,  Have an HRA? Make Sure to Pay Your “Patient-Centered Outcomes Trust Fund Fee” .  A tax where the compliance cost will usually exceed the revenue for the government.

TaxTrials, Government Denied Summary Judgment in Conservation Easement Case

 

Brian Mahany, Offshore Account Post: Trust Me, I Am From The IRS

Jack Townsend,  DOJ Requests Tougher Sentencing for Tax Crimes Involving Offshore Accounts.  Shoot to kill the jaywakers.

 

Missouri Tax Guy,  Really, you don’t’ know what an Enrolled Agent (EA) is?  Sadly, the EA designation is widely unknown and undervalued, as Bruce’s post makes clear.

 

TaxGrrrl, Congress Threatens IRS With ‘Right-Sized’ Budget Cuts

The budget, which Chairman Hal Rogers (R-KY) has referred to as “right-sized” (downloads as a pdf), gives the IRS $9 billion for 2014. In a classic case of the pot calling the kettle black, the budget is clearly a tweak at the IRS, which has been the target recently of investigations into disreputable practices, defiant bonuses and questionable spending. Rogers says the spending limits will remain “until there are clear signs that they have fixed their broken bureaucracies, curtailed lavish
spending on employee conferences and awards, and returned to abiding by the will of Congress.”

TaxGrrrl is much more sympathetic to the IRS than I am, but she is right to criticize this typical fire-into-the-crowd approach.

 

Martin Sullivan, Virginia Gas Tax Cut: Drivers Short-Changed at the Pump? (Tax Analysts Blog)

Austin John, Update on the Maryland Rain Tax (Tax Policy Blog)

 

What could go wrong?  An Honor System for Federal Taxes? (Jim Maule).  In truth, the Obamacare individual mandate has some aspects of an honor system, given the inability of the IRS to use its usual collection tools to enforce it.

 

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Tax Roundup, 6/7/2013: Mexican land trust arrangements aren’t U.S. trusts. And don’t settle for just bad enough!

Friday, June 7th, 2013 by Joe Kristan
Flickr image by Christian under Creative Commons license.

Flickr image by Christian under Creative Commons license.

The IRS had good news for many Americans owning property in Mexico.  In Rev. Rul. 2013-14, the IRS ruled that a “fideicomiso” land trust enabling Americans to hold residential property in parts of Mexico is not a trust for U.S. tax purposes.  This means taxpayers who haven’t been reporting these as trusts on Form 3520 aren’t exposed to the $10,000 annual penalty that applies to taxpayers who fail to report their foreign trusts.

Andrew Mitchel: Fideicomisos/Mexican Land Trusts are Not Trusts (Finally)  “Now if the I.R.S. will only conclude the same for Canadian tax free savings accounts (“TFSAs”).”

 

Peter Reilly,  IRS Does Not Spend Enough On Conferences. “Actively trying to demoralize the IRS employees to score political points rubs salt into the wound.”

Don’t settle for just bad enough.  The IRS: It’s Bad Enough (Christopher Bergin, Tax Analysts Blog).

The IRS is seriously and dangerously broken. This is not only unfair to the many dedicated public servants at the IRS; it’s unfair to all of us. Get to the truth. Arbitrarily punishing the IRS isn’t going to help any more than blindly defending the agency. The IRS needs fixing and it needs it now, and that starts with new and strong leadership inside the agency, and a President who is willing to spend the political capital on  IRS reform. We don’t have that President. As for the Republicans, they’d rather turn the IRS into Monica Lewinsky.

Somehow I don’t think the IRS will ever be that cooperative.

Patrick Temple-West,  IRS staff say Washington officials helped direct the probe of tea-party groups (Tax Break)

TaxProf, The IRS Scandal, Day 29.

 

Terrible news for tax practitioners from Russ Fox:  IRS Reportedly Will Close eServices’ Disclosure Authorization Program.  This program saves weeks in solving mystery IRS notices.  Closing it throws sand in the gears of tax compliance.

 

20130607-2Howard Gleckman,  Let Legal Marijuana Dispensaries Deduct Their Business Expenses.  Even when states legalize it, punitive tax rules make it almost impossible to sell legal pot profitably.

 

Brian Maharry, Abusive Tax Shelter Results In $100 Million Assessment

Tax Trials,  Value Matters, Even as Tax Court Denies Conservation Easement Deduction

Fiduciary Income Tax Blog:  FBAR Due Date — 2013.  It’s June 30, kids.

 

In America, we only do this when the Tax Man asks us to.  Italian businessmen drop trou to protest tax collector (Kay Bell)

Child Abuse? Parents to Children: Be a Lawyer, Marry a Lawyer (Jim Maule)

 

TaxGrrrl, Federal Gas Tax Passes Another Milestone: What Is The Future?

We’re closing early to go to the parties.  Happy Birthday to the Federal Gasoline Tax (Philip Hammersley, Tax Policy Blog); Tax Justice Blog,  A Not So Happy 35th Birthday for Proposition 13 But first be sure to catch Robert D. Flach’s Friday Buzz 

 

We were happy to pay him, it was some of his best work.  Another British filmmaker faces jail time for scamming the U.K. film tax credit system in making a film that never made it to the screen, reports the Express:

The scam included a bogus invoice suggesting Kill Bill star Carradine was paid more than £400,000 for 13 days worth of work, even though he had died two weeks prior to the date stamped on the notice.

This is the second criminal film project to hit the news in the U.K.; another one hilariously involved a film thrown together when the operators sensed the authorities were catching on to their scam.  Meanwhile two filmmakers are serving out their 10-year sentences for scamming the Iowa film credit program.  You’d almost think maybe these film credits are just a scam entirely.

 

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Tax Roundup, 6/5/2013: IRS line-dancing edition. And stimulus that works!

Wednesday, June 5th, 2013 by Joe Kristan

The IRS spent $4.1 million on a single internal conference in Anaheim, reports the Treasury Inspector General for Tax Administration.  Sure, it’s easy to mock the IRS for conferences, or for silly dance videos, though I find it reassuring to see that there are people in the IRS who have a sense of humor.

What bothers me is the priorities it shows.  For tax pros in Iowa, the best thing the IRS does is its Practitioner Liaison program.  Not only does our liaison do an excellent job of alerting us to processing problems during filing season and cutting through red tape, but she puts on well-attended and popular conferences that have to help the IRS get better-prepared filings.

Yet the Practitioner Liaison office is continually nickled and dimed.  There is always pressure to limit travel to outlying towns.  Our liaison has had to fill in for other states when their positions have been left vacant.  It just seems wrong that the IRS can find $135,000 for speakers to inspire agents in Anaheim, but not to fill the gas tank of someone in the field in Iowa doing useful and popular work.

It also doesn’t help the argument that the IRS just can’t afford to answer its phones or process exempt organization applications.

David Henderson (Econlog) posts a summary of what $135,000 got for the Anaheim attendees.

Kay Bell, Taxpayers picked up $49 million IRS conference tab over three years, including one that cost $4.1 million alone

 

TaxProf, The IRS Scandal, Day 27

Patrick Temple-West,  IRS scandal prompts hope for tax reform, and more

 

TaxGrrrl has a wonderful story about the beneficiaries of a California jobs tax credit:

This practice made news in the state when a local news crew focused on two strip clubs,   Deja Vu Showgirls of Rancho Cordova and Gold Club Centerfolds, found to have received thousands of dollars in tax breaks – without doing anything different from before. Those clubs benefited from their existing locations and were not lured to the area by the promise of tax incentives; additionally, their hiring practices weren’t influenced at all by the tax breaks. That isn’t the point of the credit, according to Sen. Hill and his supporters.

No, the point of the tax credit is to enable politicians to take credit for “creating jobs” by taking your money and giving it to somebody else.

Longtime readers know that The Tax Update has no use for any “economic development” tax credits.  These credits are generally paying companies to do what they would have done anyway — in this case, to disrobe.   At least these credits went for something people want, and there’s no questioning the stimulative effect.

 

Paul Neiffer, Update on Commodity Gifts

Missouri Tax Guy, Employee vs. Contractor… How to tell.

 

Peter Reilly, California Gets To Snack On Jerome James SuperSonics Salary   If you keep a house in California, don’t be surprised if California thinks you live there.

David Brunori, On its 35th Birthday, Prop 13 Remains Flawed (Tax.com):

But I think Proposition 13 was a horrible policy choice.  It devastated local government autonomy. Local governments in the United States have been the most efficient, effective, and democratically responsive means of providing public services. But that effectiveness is contingent on having an independent source of revenue. When the state finances local
government services, it is almost assured that those services will not be provided at levels demanded by citizens.

Joseph Henchman,   Nevada Approves $20 million/year to Subsidize Film and TV Production.  (Tax Policy Blog) They apparently have enough strip clubs.

Tax Justice Blog,  Brownback’s Kansas is Taking Tax Cuts to Extremes

 

Jack Townsend,  Swiss Enablers Are Worried, As Well They Should Be

Jim Maule, Code-Size Ignorance Knows No Boundaries.  The tax law is enough of a mess without exaggeration.

Robert D. Flach rounds up reaction to his defense of doing returns by hand.

 

Not if you do it right.  IRS Bashing Can Be Fun But Also Expensive (Joseph Thorndike, Tax.com)

 

 

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Tax Roundup, 6/4/2013: High School non-musical IRS scandal edition.

Tuesday, June 4th, 2013 by Joe Kristan
Lois Lerner, IRS, Class of 2013?

Lois Lerner, IRS, Class of 2013?

Sometimes life seems like high school continued.  One of my high school classmates apparently has an unpleasant history with a central figure in the IRS scandal.  Investors.com reports:

Perhaps not surprisingly, the IRS scandal may have its roots in Illinois politics with the 1996 targeting of Illinois conservative Al Salvi by a familiar name, Lois Lerner, then head of the Enforcement Division of the Federal Elections Commission.

That year, Democrat U.S. Rep. Dick Durbin and Republican State Rep. Al Salvi were locked in a battle for the U.S. Senate seat Durbin would eventually win.

As the journal Illinois Review details, Salvi was confronted with an “October surprise,” not one, but two, FEC complaints filed against him — one by Illinois Democrats about the way he reported a loan he made to himself, and another by the Democratic Senatorial Committee about a reported business donation.

Al Salvi, Carmel High School for Boys, Class of 1978

Al Salvi, Carmel High School for Boys, Class of 1978

Mr. Salvi says Ms. Lerner played hardball, reports Illinois Review, demanding that he promise to never run for office again if the FEC dropped their complaint:

During that call, Salvi said, he explained to Lerner exactly what happened — that while the loan to himself was legal, there may be a difference of opinion on how the loan was reported to the FEC. Salvi explained it was a simple matter and said he thought Lerner would suggest an agreeable solution and dismiss the Democratic National Committee’s complaint. 

But that was not Lerner’s reaction. Instead, that’s when she said to Salvi, “Promise me you’ll never run for office again, and we’ll drop the case.”

Salvi said he asked Lerner if she would be willing to put the offer into writing.

We don’t do things that way,” Salvi said Lerner replied.

Salvi queried how then could such an agreement be enforced.

According to Salvi, Lerner replied: “You’ll find out.”

A judge dismissed the FEC complaint after the election, which Mr. Salvi lost to Dick Durbin, who still holds the seat.

If the Salvi account holds up, it certainly doesn’t help the case that Ms. Lerner was just a dedicated civil servant trying to enforce Sec. 501(c)(4) impartially.  In any case, it’s clear just by the job she held at the FEC that she had to be aware of the politics involved in the Tea Party applications while employees under her supervision improperly targeted anti-administration groups.  She has stated that she tried to stop the targeting.

Disclosure: I have an electoral history with Al Salvi, but no FEC intervention was needed.

 

So-called Scandal Watch  There is a mini-backlash against the idea that there is anything scandalous about what the IRS did; Linda Beale and Iowa political commentator Ed Fallon are on that bandwagon.  Testimony yesterday by Russel George, Treasury Inspector General for Tax Administration, is relevant to the issue:

The IRS used inappropriate criteria that identified for review Tea Party  and other organizations applying for tax-exempt status based upon their names or policy positions instead of indications of potential political campaign intervention. Because of ineffective management by IRS officials: 1) inappropriate criteria were developed and stayed in place for a total of more than 18 months, 2) there were substantial delays in processing certain applications, and 3) unnecessary information requests were issued to the organizations.

That seems like plenty of scandal right there, even if the only villain is “ineffective management.”  The behavior towards the Tea Party groups is also consistent with effective but ill-intentioned management.

Martin Sullivan leans to the “no scandal here” school in More than 80% of “Tea Party” Applications Should Have Been Reviewed Anyway (Tax Analysts Blog).  That still doesn’t justify the intrusive nature of the questions asked or the extensive delays.  It’s also like saying it would be OK to, say, frisk everyone at a drug legalization rally, as long as many of them are found to be carrying dope.

 

TaxProf, The IRS Scandal, Day 26.

Kay Bell, IRS Acting Commissioner Daniel Werfel survives his first Capitol Hill hearing on troubled agency problems

Jeremy Scott, IRS Missteps Will Hurt Tax Administration (Tax Analysts Blog): “As sympathetic as the IRS can seem on one hand, its absurd expenditures on conferences and training videos, along with the appearance of political bias resulting from the exempt organization scandal, have made it almost inconceivable that it will receive more funding anytime soon.”

Clint Stretch, The IRS Exempt Org Debacle: An Easy Fix (Tax Analysts Blog): “Anyone who wants to form a social welfare organization should be allowed to do it.”

Patrick Temple-West,  Republican donors drew IRS scrutiny, and more.  Related Tax Update coverage: Can political contributions really be taxable gifts?

Linda Beale, Another False Media-Generated IRS “Scandal”

 

Jim Maule, Does a Mandatory Compensation Deduction Reduction Make a Credit Mandatory?

Fiduciary Income Tax Blog, Are Self-Settled Special Needs Trusts on the Horizon?

It’s Tuesday, so Robert D. Flach has your Buzz!  Meanwhile, Kay Bell posts Tax Carnival #117: Summer Tax Time

 

Breaking: The Donut Sandwich Is Here, So…Are Weight-Loss Costs Tax Deductible?  (Tony Nitti).

 

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Tax Roundup, 5/31/2013: Obama and Shulman, buddies. And the hidden path to world domination.

Friday, May 31st, 2013 by Joe Kristan

Megan McArdle, Boy, the Head of the IRS Went to the White House A Lot

20130531-1

 

I believe Megan is correct when she says that it is unlikely that Shulman was spending his time there conspiring against the President’s opponents:

Why on earth would it have taken 118 meetings?  Did Doug Shulman not  understand “target the tea party” the first 117 times Obama said it?  

The close contact between the IRS and the White House is actually what you might expect to see now that the IRS has become a ridiculous superagency with a portfolio dwarfing that of the traditional cabinet agencies.  Still, it’s very weird that Doug Shulman spent more time at the White House than the Treasury Secretaries and the Secretaries of Defense — combined.

Update: It would be less weird if it didn’t happen.

 

TaxProf, The IRS Scandal, Day 22

IRS, Bureaucratic Blunder or Political Profiling? (Topaccountingdegrees.org)

 

Kay Bell, More tax professionals (including bloggers) formally support legal challenge of IRS’ effort to regulate tax preparers.  That would be me.

Kyle Pomerleau, A Redistributional Effect of Obamacare (Tax Policy Blog)  Picking the pockets of healthy young men.

Estimated effect of Obamacare on health insurance costs in select states (via Tax Policy Blog)

Estimated effect of Obamacare on health insurance costs in select states (via Tax Policy Blog)

 

William Perez,  “Complaint Case #460575036224″ — Fake Email from the IRS.  Rule of thumb: if you get an e-mail that says it’s from the IRS, it’s not from the IRS.

Trish McIntire, Phishing Again

 

Paul Neiffer, Pay Your Kids!  If you can get them to actually do some work, of course.

Brian Mahany,  The Promised Land – FATCA Causes Record Number Of Americans To Leave.  Congress is making America more of a “selective” taste.

 

TaxGrrrl, Donations Pour In For Oklahoma Relief Efforts, Including $1 Million From Carrie Underwood and Kevin Durant

Patrick Temple-West,  Evidence that tax breaks favor the rich, and more.  Common sense, folks: the rich pay most of the taxes, so any “break” will go to the person who pays most of the taxes.

Howard Gleckman,  Who Benefits from Tax Preferences? You Do. (TaxVox): “When it comes to tax preferences, Pogo was right. “We have me the enemy and he is us.”

 

Fiduciary Income Tax Blog: Decanting.  Trusts, not old wine.

Jim Maule, The Tax Woes of a Corporation Owned by an Indian Tribe

Tax Justice Blog, Governor Cuomo Hearts Tax Cuts.  But only in some places.

Brian Strahle,  MIDDLE MARKET COMPANIES:  RECENT STATE AND LOCAL TAX “PAIN” POINTS

 

Christopher Bergin, Ireland Is Not a Tax Haven, Dammit (Tax Analysts Blog)

Robert D. Flach has his Friday Buzz on! I like this: “The recent scandal has proven that the IRS can’t even properly regulate its own employees, let alone try to properly regulate tax preparers!”

 

It’s a small world after all.  McGladrey’s Plan For World Domination: Nebraska! (Going Concern)

 

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Tax Roundup, 5/29/2013: Why Did Shulman spend so much time at the White House? He has no idea.

Wednesday, May 29th, 2013 by Joe Kristan
The tax law - The Ultimate Swiss Army Knife of public policy.  Flickr Image courtesy redjar under Creative Commons license.

The tax law – The Ultimate Swiss Army Knife of public policy. Flickr Image courtesy redjar under Creative Commons license.

If you or I went to the White House, we’d remember it always.  I have been inside the Treasury once, and the IRS building once, and I definitely remember it.  But when you are a real mover and shaker like Doug Shulman, it all starts to blur, apparently.

From WashingtonExaminer.com:

Former Internal Revenue Service Commissioner Doug Shulman visited the White House 118 times between 2010 and 2011. Acting Director Steven Miller, who took over at the IRS in November, also made numerous visits to the White House, though variations in the spelling of his name in White House visitor logs makes it difficult to determine exactly how many times.

The frequent trips to the White House under Obama far outnumbered the times other administrations felt the need to meet with the IRS, according to Mark Everson, who led the IRS under former President George W. Bush. Everson said he remembers making only one trip to the White House between 2003 and 2007 and said he felt like he’d “moved to Siberia” because of the isolation.

Funny, I thought the IRS was an “independent agency.”

Shulman said he couldn’t remember why he went to the White House so frequently, though some of the visits were probably about the IRS’ role in implementing Obama’s health care reforms, he told a congressional committee. Logs show Shulman met with two West Wing officials working on health care.

“The IRS has a major role in the money flow,” Shulman explained to Congress.

But while the health care-related visits were explained in the logs, many others included no explanation.

I doubt Shulman met with the President or his aides to plot audits of presidential enemies — though you’d think he’d be able to figure out why he spent so much time there.  Do they still have a bowling alley?

It’s likely that his visits reflect the way the IRS has become a cross-functional super-agency, with bigger responsibilties than most cabinet departments.  That is at least as disturbing as the outrageous Tea Party harassment.

 

Don Boudreaux, Count on It: Power Will Be Abused:

The fundamental question raised by the IRS scandal isn’t whether Obama ordered, or even knew of, the apparent misuse of the taxing power to punish political opponents. Rather, the fundamental question asks about the wisdom of creating in the first place government agencies that can so easily abuse their power in order to play political favorites.

The question answers itself.

 

Linda Beale thinks it’s just fine to harass the Tea Party:

This so-called “scandal” is just another instance of right-wing obstructionism that is willing to sacrifice good government for maintaining or increasing political power.

Um, no.  Even President Obama says that what the IRS did was a bad thing.  It’s a little late to try to pretend that it was just the IRS doing its job.  Unless, of course, you think its job is to obstruct political opposition and coddle organizations congenial to Linda Beale.

 

Patrick Temple-West, Groups test political tax rules, and more (Tax Break)

Martin Sullivan, TIGTA Report Implies a Lot, Proves Little, About Bias at the IRS (Tax Analysts Blog)

TaxProf,  The IRS Scandal, Day 20

 

Jack Townsend covers a developing U.S. – Swiss tax enforcement agreement in Swiss Settlement May Be Near and More Developments on Swiss Agreement with U.S.: “With this development, I am sure that the IRS will be sending a lot of John Doe treaty requests.”

 

Paul Neiffer, More States to Raise Taxes?

Scott Drenkard, Wisconsin Plan Cuts Rates, Broadens Bases, Improves State Business Tax Climate Ranking (Tax Policy Blog).  Iowa should try that sometime.  The Quick and Dirty Iowa Tax Reform Plan is ready to go!

 

Peter Reilly, Tax Reform – Should Partnerships And S Corporations Follow The Same Rules ?

Howard Gleckman, The Challenge of Cutting Deductions to Lower Tax Rates (TaxVox)

TaxGrrrl, Internet Sensation Charles Ramsey Gets Free Food From McDonald’s: Do You Want Taxes To Go With That?  If he takes them up on it, the medical deductions may offset any taxable income.

 

Joseph Thorndike, Krugman Berates a Bush — Unfairly (Tax Analysts Blog)

Jim Maule, Reader Weighs In on Weighing the Code

 

Of course he does.  Nicolas Cage Urges Nevada to Subsidize the Film Industry (Joseph Henchman, Tax Policy Blog)

Let us praise our dedicated civil servants.  IRS employee charged with going on a years-long buying spree with Uncle Sam’s credit card (Kay Bell)

A disgrace to his profession. Las Vegas pimp faces prison after pleading guilty to tax-evasion charge

It’s good to be king.  Princess, maybe not so much. Princess Cristina to be investigated for tax fraud

 

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Tax Roundup, 5/28/2013: Delayed Monday edition. And spam!

Tuesday, May 28th, 2013 by Joe Kristan

20130419-1Arnold Kling,  The IRS Scandal:

To me, the real story is the low status of the Tea Party.  As others have pointed out, if the NAACP or the Sierra Club had complained about harassment, politicians and the press would have investigated the story from day one.  But I think that it is wrong to think of this as an ideological double standard.  If Code Pink or Greenpeace had complained about IRS harassment, nobody would have risen to their defense. My point is that, in the eyes of the establishment, the Tea Party is closer to Code Pink or Greenpeace than to a respectable organization.

While I think Arnold is generally right, I think that Code Pink and Greenpeace would get a lot more establishment love than the Tea Party folks.  Constitutionalism and fiscal sanity just aren’t clubbable.

 

Doug Bandow, Restrain the Abusive Administative State (American Spectator, via Cafe Hayek):  “Reforming the IRS won’t make sense otherwise.”

Jack Townsend, Invoking the Fifth – the House Oversight Inquisition

TaxProf,  The IRS Scandal, Day 18

 

 Quotable:

Corporations make location decisions based on three main factors: labor costs, access to markets, and a qualified workforce. Without those factors, no amount of tax incentives will ever persuade a business to invest in a particular place. Scholarly research and a ton of anecdotal evidence show that businesses don’t make location decisions based on tax incentives. – David Brunori, Tax Analysts ($link)

Iowa just increased its tax incentive budget by $50 million.

 

Tony Nitti, Eleventh Circuit: Father Of The Year Candidate Recognized $36 Million In Taxable Income Upon Exercise of Options:

When the dust settled, Dad was left with a $14,000,000 bill, while his kids were entitled to a nice fat tax deduction. This act of poetic justice should remind all parents that if you’re going to be overbearing and meddle in your kids’ lives, try and confine your fatherly misgivings to hurling empty whiskey bottles at Little League umpires, like my old man.

 

Patrick Temple-West, Tax moves pit large companies against small, and more (Tax Break)

Peter Reilly, Current Tax Reform Push Less Promising Than 1986

 

Rich States, Poor States, an annual analysis of “state competitiveness” by the American Legislative Exchange Council (‘ALEC,”or, to Ed Fallon, “Satan”) is out for 2013.  The free-market group ranks Iowa at 25th overall for both “economic performance” and “economic outlook.”  Iowa rates well for its right-to-work rules, state debt, and court system, but poorly for its tax system.

Tax Justice Blog, Congratulations to Minnesota for Crossing the Finish Line.  No, in spite of their politicians best efforts, Minnesota isn’t finished off yet, but they’re working on it.  Minnesota rates 46th on the ALEC “economic outlook” list.

 

William Perez,  Tax Relief For Oklahoma Tornado Victims

Trish McIntire, New Form I-9

 

Kay Bell,  Memorial Day 2013: Remembering those who gave all, offering some tax help for those still giving

Jim Maule, Paying Taxes: In Memoriam.

 

Robert D. Flach starts off your short work week with a fresh Buzz!

Better Spam.  The spambots made 190 deposits into my spam inbox over the weekend.  Usually they have stupid names lie “Swaceague,” “Moncler Jackets” or “Cheap Moncler Jackets,” so I was pleasantly surprised to see “tom waits glitter and doom live” make an entrance.  Unfortunately the comment was typically spammy:

My spouse and I stumbled over here from a different web address and thought I might as well check things out. I like what I see so i am just following you. Look forward to looking at your web page again.

Dang.  It would be nice if Tom Waits really was spamming me.  But I am oddly intrigued that family web-surfing is a theme in spam.  “My cousin recommended this web page to me,” etc.  “My wife and I were surfing, and awesome commentary here.”  Are there really cultures where anybody would say something like that?  Is there somewhere on the planet a society where they delight in recommending favorite web sites to shirttail relatives eager to follow up on web recommendations from in-laws?

 

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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, 5/13/2013: Modified limited hangout edition. And a tax blog hijacking!

Monday, May 13th, 2013 by Joe Kristan

20130419-1If the IRS hoped Friday’s “apology” for giving extra special attention to tax-exemption applications of right-side groups would settle things, they’re very disappointed this weekend.  The Washington Post reports that the Treasury Inspector General for Tax Administration will soon issue a report saying Friday’s apologizer, IRS Director, Exempt Organizations, knew this was going on in 2011.  Meanwhile, in 2012 IRS Commissioner Doug Shulman was still testifying that IRS was not picking on the Tea Party.

So not only was the Shulman era at IRS grasping, incompetent and casually cruel, it was dishonest.

The Tax Prof has a fresh roundup, The Deepening IRS Scandal.

Another Washington Post story has this:

At various points over the past two years, Internal Revenue Service  officials singled out for scrutiny not only groups with “tea party” or “patriot” in their names but also nonprofit groups that criticized the government and sought to educate Americans about the U.S. Constitution, according to documents in an audit conducted by the agency’s inspector general.

The documents, obtained by The Washington Post from a congressional aide with knowledge of the findings, show that the IRS field office in charge of evaluating applications for tax-exempt status decided to focus on groups making statements that “criticize how the country is being run” and those that were involved in educating Americans “on the Constitution and Bill of Rights.”

Yes, we sure need to keep an eye on those wingnuts who want to educate people on the Constitution and Bill of Rights.  Dangerous lunatics, they are!

There is so much blog coverage of this that I won’t even try to round it all up.  A few links from our blogroll:

Megan McArdle,  Why Did the IRS Target Conservative Groups?

Going Concern, Footnotes: Tea Party Patriots to IRS: Drop Dead

TaxProf,  Schmalbeck on the IRS ‘Targeting’ of Conservative Groups, where an academic gives a “nothing to see here” take, one that is already largely overtaken by events.

 

And some other coverage:

Connor Simpson,  Why the IRS Abruptly Apologized to the Tea Party  (via Instapundit):

The report doesn’t shay whether or not Shulman was informed about the Tea Party questioning, but it does show the IRS’s chief counsel was. It’s standard procedure for the counsel and commissioner to discuss this  sort of thing before a Congressional hearing.

If so, The Worst Commissioner Ever can only plead incompetence instead of lying to Congress.

Reason.com has a bunch of posts at their Hit and Run blog, including  Matthew Feeney,  IRS Scrutiny Extended Beyond Tea Party Groups (Reason.com); Jesse Walker,  A Brown Scare at the IRS?; Matt Welch,  NY Times: IRS Targeting of Tea Party Only Proves Republicans Are Desperate  “It’s the inability to see discrete news events for what they are, rather than what they might mean for the neverending scrum between Teams Red and Blue.”

Jonathan Adler,  IRS Scrutinized Teaching the Constitution (Volokh Conspiracy)

Professor Bainbridge, Wider Problems Found at IRS – Twisting slowly in the wind

William Jacobson,  IRS anti-Tea Party scandal gets real — senior IRS officials aware of targeting (Update – Chief Counsel knew and targets expanded to groups “educating on the Constitution and Bill of Rights”)

Katrina Trinko, Rubio: IRS Commissioner Should Resign Immediately (The Corner)

Ann Althouse has more.

And here’s my take from Friday, if you missed it:   Look at a celebrity return?  You’re fired!  Harass a Tea Party outfit?  Carry on.

 

In other news:

Nina Olson, IRS Taxpayer Advocate, has an article in Tax Analysts (via the TaxProf) affirming her support for taxpayer regulation.  Ms. Olson has done much good work as Taxpayer Advocate, but her support for increased preparer regulation is economically uninformed and hopelessly wrongheaded.

 

Russ Fox,  IRAs and Owning a Business Through an IRA and  What Can Go Wrong?  Nevada Democrats Want to Give Tax Breaks to Movie Industry

Peter Reilly,  Brooklyn Grandmother Wins On Dependency Exemption.   Just in time for Mothers Day!

TaxGrrrl,  IRS Set To Close Next Week.  Bad news: it’s only temporary.

 

Trish McIntire,  Max and Dave Looking for Reform

Nick Kasprak,  Do Tax Cuts Pay for Themselves?

Patrick Temple-West,  Falling deficit alters budget debate, and more

Linda Beale,  Orrin Hatch on tax reform at the ABA–a predictable right-wing rant

 

Andrew Mitchel,  Barnes Group – Structured Repatriation Was a Dividend.  In spite of the best efforts of national tax firms.

Phil Hodgen,  Decline of American Civilization, Form 8938 Edition.  “Let’s just bury the world in useless paperwork, shall we?”  That does appear to be the plan.

 

Kay Bell,  IRS reports gains in criminal tax, other financial investigations

Jack Townsend, Cheating is Cheating, Except When Offshore Accounts Are The Means, followed up with More on Conviction Rates in Tax Cases.

Janet Novack,  Independent Contractor Enforcement: There’s More Than The IRS To Fear.  Plenty of state rules and taxes also come into play.

Jim Maule,  The Complexities of Tax: Is This Really Necessary?  “A recent IRS private ruling, PLR 201318003, illustrates how the special low rates for capital gain adds layer upon layer of complexity to the tax law.”

 

I’d like to report a hijacking.  It looks like somebody at Tax Analysts forgot to renew their ownership of the  tax.com domain name.  Going there this morning gets this:

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Tax.com is (has been?) home to the great group blog featuring, among others, David Brunori, Christopher Bergin, David Cay Johnston, Martin Sullivan, Cara Griffith and Clint Stretch.  I hope this is only a temporary hijacking.

 

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Tax Roundup, 5/10/2013: Pork and Tequila edition.

Friday, May 10th, 2013 by Joe Kristan

Politicians advance plan to allow politicians to give more tax money to private businesses.  From TheGazette.com:

Iowa communities would be able to designate special 25-acre development zones and use a share of sales tax and hotel-motel tax revenues to assist private projects of at least $10 million under legislation that’s getting bipartisan support.

House File 641 would establish reinvestment districts designed to spur development of “big ideas,” said Sen. Matt McCoy, D-Des Moines, who led a Senate Ways and Means subcommittee that revamped the bill representatives approved 87-9 last month.

This is, of course, an awful idea.  Politicians are notoriously bad at allocating investment capital, and they tend to make sure it goes to their cronies and contributors.  But when the state’s Governor, a member of the purported small government party, does an end-zone dance over a giant federal subsidy to a private utility controlled by a billionaire, the battlefield is left to the crony capitalists.  The House version of HF 641 passed 87-9.

 

 

David Cay Johnston, No Bang for the Buck (Tax.com)

New York State’s comptroller says giving $2.8 billion in tax breaks over  five years added more than a million jobs, which would be great news except that the state lost jobs.

I’m confident Iowa’s job-creating tax breaks work just as well.

 

Kyle Pomerleau,  Suggested (Large) Tax Increase on Investors is Far From International Standards (Tax Policy Blog)

For capital gains, the current law is already out-of-step with international standards. After the fiscal cliff, combined state and federal capital gains rates increased from 19.1 percent to 28 percent. This is more than 10 percentage points higher than the international average. One suggestion, of course, is to tax capital gains at the rate at the 1986 rate of 28 percent. This would push America’s average combined federal and state capital gains rate to more than 35 percent, more than double the international average.

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Kay Bell,  Tax-writing committee chairmen launch tax reform website

Howard Gleckman,  Will the Slowdown in Health Cost Growth Change the Budget Debate?  (TaxVox)

Patrick Temple-West,  Tax collections from wealthy are saving government, and more (Tax Break).

Russ Fox,  How Long Should You Keep Your Tax Returns For?

Jim Maule, It’s Not a New Tax

Robert D. Flach offers your Friday Buzz.

 

Jack Townsend,  IRS, UK and Australia Joint Efforts on Offshore Accounts

Linda Beale,  Moving in the right direction: US, UK, Aussies to share tax info

 

Inspirational tax blogging.  No, really:  Five Years After A Brain Aneurysm, Fear Of Dying Can’t Make Me Quit Living  (Tony Nitti).  Inspiring and moving.

 

News you can use.  Book On New Jersey Wines Does Not Support Deducting Trips To France (Peter Reilly)

 

Her sister Everclear wasn’t implicated.  From nbc-2.com, Ft. Meyers:

A chance traffic stop on I-75 in Lee County uncovers a massive tax fraud scheme. Deputies say the woman accused used her job to steal personal information – even stealing from people who were dead.

Thursday, 23-year-old Tequila Gordon was sitting in the Lee County Jail. Her bond was set at $72,000. 

Prosecutors say she worked at liberty tax services in 2009 and stole personal information from dozens of people.

I would think having a first name of “Tequila” would make getting a good job challenging.  It won’t be any easier now.

 

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Tax Roundup, 5/8/2013: Still no tax fairy. And no fiscal heroes.

Wednesday, May 8th, 2013 by Joe Kristan

tax fairySearch for the Tax Fairy leads to federal prison.  The Tax Fairy, in the imagination of believers, appears in the form of magical legal maneuvers that make your taxes all go away.   Your drinking buddies may even claim to have seen it, or that their tax guy knows her.

It can hurt when you find that there is no Tax Fairy.  It must hurt for one South Dakota surgeon.  From RapidCityJournal.com:

Friends and family described Dr. Edward Picardi as a compassionate, highly skilled surgeon, but the accolades failed to spare the doctor a five-year prison sentence for income tax evasion on Tuesday.

Despite the good the Sturgis man was proclaimed to have done in his life, Picardi, 56, is the same man a federal jury convicted of 13 felonies last October, U.S. Chief District Judge Jeffrey Viken said when he sentenced the doctor.

Picardi was charged with income tax evasion after an exhaustive federal investigation of his financial practices spanning 10 years from 1999 through 2009. He used an elaborate network of dummy corporations and several foreign banks to divert thousands of dollars in income.

The indictment says the scheme was hatched with the aid of a Maryland attorney who set up a phony employee leasing scheme to suck taxable income to shell companies, which the surgeon tapped for cash as needed.   This worked fine, until one day it didn’t, and now it’s a five-year unpaid vacation, plus tax, interest and penalties.

There is no Tax Fairy.

 

Jana Luttenegger,  Disclaiming an Inheritance  (Davis Brown Tax Law Blog).  Sometimes it’s better estate planning to turn down an inheritance and let it go to your kids or some other beneficiary.  But you have to do it right:

 Most importantly, the disclaimer must be made before you accept any benefit in the gift, and it must be an unqualified disclaimer. (No, you can’t have a party at the house and then decide you don’t want it.) Once the disclaimer is made, it is irrevocable — you can’t change your mind. If you properly disclaim, the property will pass as if you predeceased (you do not get to direct where the property goes).

 

Arden Dale,  A Strategy for Business Owners to Avoid Investment Tax (Wall Street Journal:

Financial advisers have a simple question for some of their clients who own businesses: Are you an active or passive owner?

For the clients whose businesses are set up as S corporations, the answer is crucial if they want to avoid paying a new 3.8% tax on their income.

So what’s the strategy?  Not being passive.  Easier said than done.  (via Tax Break)

 

Joseph Thorndike, A Lost Age of Fiscal Heroes? Not So Much. (Tax.com):

The looming debate over the federal debt limit is a depressing reminder that we’re living in the Age of the Manufactured Crisis. And it encourages a sort of political nostalgia – a yearning for that bygone era when tough lawmakers made the tough decisions that kept federal debt at manageable levels. Well, sorry to tell you, but there were never any fiscal heroes.

Just politicians who show by their actions that they are happy to spend us to Greece.

 

Jason Dinesen,  Same-Sex Marriage, Community Property, And Multi-State Income — Part 1.  “Indeed, some of the most complicated tax returns I’ve ever prepared have been for same-sex couples that moved from California (a community property state) to Iowa (not a community property state) during the middle of the year.”

Clint Stretch, Will DOMA Issues Doom Tax Reform?  (Tax.com)

Howard Gleckman,  The Joint Committee’s Report on Tax Reform: Must-read for Policy Geeks:

Think of it as the ballpark program you pick up before a baseball game.  You can watch the game without it, but it is much more fun if you can keep score and know a little something about who plays for the visiting team.

Except much less interesting than baseball, and the players are uglier and less skilled.

 

Kay Bell, Is the online sales tax bill unstoppable? The House will decide

Joseph Henchman,  Senate Approves Expanding State Tax Authority on Internet Sales (Tax Policy Blog)

David Brunori, Go Big or Go Home — Tax Reform in Maine (Tax.com)

Russ Fox,  California Leads the Way (as Worst State for Business).  Iowa is 23rd in the rankings in Chief Executive Magazine.

 

Jack Townsend links to an Article on Prosecuting Tax Professionals to Leverage Deterrence

Patrick Temple-West,  Airline industry’s tax troubles, and more  (Tax Break)

Robert D. Flach,  GETTING READY FOR SUMMER – FILLING OUT FORM W-4 FOR A SUMMER JOB.  With excellent advice about using a Roth IRA for your hard-working kid’s summer work.

 

The Critical Question:  How Difficult Is It to Count Tax Words? (Jim Maule)

But maybe he won’t anyway.  Maybe Mitt Romney Can Recommend a Savvy Tax Planning Professional for Al Gore (Going Concern)

 

 

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Tax Roundup, 5/6/2013: Iowa tax policy receives recognition! And – potassium forever?

Monday, May 6th, 2013 by Joe Kristan

20130117-1David Brunori doesn’t think much of the tax wisdom of the Iowa House of Representatives ($link):

The Iowa House of Representatives recently passed the Iowa Reinvestment Act, which would allow companies to keep sales tax revenue they collect rather than turning it over to the general fund as the citizens think will happen. Basically, the act is designed to allow businesses to recoup the cost of development. The state has done that before to allow the public to help finance a speedway and other projects that apparently  can’t be justified in the free market. The vote for that abomination of tax policy was 87 to 9. That’s what we call bipartisan bad tax policy.

Just more of using your money to subsidize the well-lobbied and well-connected.

Related: David Cay Johnston, Subsidies – Good News and Not So Good (Tax.com)

 

Jim Maule leaps from his blog to Tax Notes, IRS-Prepared Tax Returns: A Theory That Doesn’t Work in Practice.  (Via the TaxProf):

The idea of the IRS preparing individuals’ returns is a classic example of a theory that cannot survive in a practical  world. Like most theories, it deserved an experiment. It had that chance, in California, and it failed, with only a tiny portion of the eligible population deciding to participate.

Making taxpayers’ lives easier is a matter of simplifying the tax law, not enabling the complexities by turning tax preparation over to the IRS.

This strikes me as wise.  I just can’t imagine IRS data processing ever making this possible, considering the complexity of the income tax and the way Congress changes it all the time.

 

Brian Gongol on the Obama Administration’s proposed $3.4 million cap on retirement account accumulations:

On one hand, $3.4 million is a lot of money — nobody should doubt that. But we’re also nearly completely blind in America to how much is “enough” for retirement. Many people would say the word “millionaire” and imagine Uncle Pennybags or Uncle Scrooge. But consider this: If you wanted to get $40,000 a year in retirement income and do it just on interest payments alone (in other words, if you were trying to avoid taking anything out of your nest egg and just live on the interest), then if you had your money in “safe” 10-year Treasuries earning 1.78%, then you’d have to have more than $2.2 million in the bank. Under those conditions, “rich” doesn’t really look so rich anymore.

I don’t think the nation’s biggest problem is people saving too much.

 

Holding your breath for tax reform?  Exhale.  Martin Sullivan says tax reform is on the Fast Track to Nowhere. (Tax.com)

Donald Marron,  Immigration, Dynamic Scoring, and CBO (TaxVox)

 

Kay Bell,  5 tax tips for Cinco de Mayo

Brian Mahany,  FINRA Issues Warning On Nontraded REITs – Stockbroker Fraud Post

We have written several times about the dangers of nontraded or thinly traded REITs. They are a popular way of investing in real estate but they can be difficult to sell or liquidate if an investor suddenly needs cash.

I saw an elderly, ill client with severe cash problems while holding a private REIT investment that he couldn’t cash out.  This really does happen.  This is not a problem with widely-traded REITs, which are as liquid as any stock.

Jim Maule,  Why the “Toss Tax Records After Three (or Seven) Years” Advice is Bad.  I never throw away tax returns, and you need to keep records to support the cost of shares and big assets.  If you have loss carryforwards, you need to keep the records that support the losses as long as you are using the carryforwards.

Trish McIntire, RAL Fees in Court

Scott Hodge, In Memorial: Gordon Paul Smith.  We lose an important tax scholar.

 

Jack Townsend,  Article on Singapore Crackdown on Singapore Bank Accounts Used for Other Country Evasion

 

The tax law: is there anything it can’t do?  Scientist Pitches Proposal to Curb Bird Deaths: A Tax On Cats  (TaxGrrrl)

 

Potassium forever?  An accused embezzler apparently was in no hurry to stand trial.  From StarTribune.com:

A Texas man faces more than 16 years in federal prison for his role in a scheme to bilk nearly $400,000 from his former Eagan employer, Advantage Transportation.

Clayton “Craig” Hogeland, 43, also obstructed justice by faking a life-threatening medical condition, U.S. District Judge Patrick Schiltz found. That caused delays for both his trial and sentencing hearing.

How did he delay his trial?

Further health-related delays stretched out the trial before his conviction on Dec. 6, 2011. He was placed in custody Jan. 8, 2013, and the erratic blood potassium readings stopped. Six days later, his wife reported to federal authorities that she found in his belongings four zip-top bags of what turned out to be potassium chloride.

Despite his continuing complaints about symptoms after being jailed, tests revealed no abnormal blood potassium levels, the prosecution said.

I’m not sure this was well thought-out.   What’s the next move?  More potassium?  Maybe when you are looking at 16 years in federal prison, delay is its own reward.

 

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Tax Roundup, 5/3/2013: Return of the Glaciers edition.

Friday, May 3rd, 2013 by Joe Kristan

Tax Update World Headquarters is just a few hundred yards north of the Raccoon River, where the last glacial advance ended about 14,000 years ago.

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Downtown Des Moines, Locust St., this morning.

 Today’s weather makes me wonder whether mastodons eat tulips.

 

TaxProf,  Small Business Owners Sue IRS Over ObamaCare.  I don’t think you can stop a train wreck with a lawsuit.

 

Looking for wounded jaywalkers.  Blogger and tax defense attorney Jack Townsend is looking for “Readers of this Blog Willing to Share Their Personal Experiences in the OVDP/I Programs“:

A reporter for a nationally prominent publication has contacted me to help him get in touch with people who have gone through one of the OVDI/P programs to discuss their experiences and thoughts about the programs.  If you are interested and/or willing to do that, please contact me at jack@tjtaxlaw.com and I will put you in touch with the reporter.

So maybe it’s a chance for those of you who’ve been put through the ringer for a foot-fault violation to get a little justice.

 

Janet Novack,  Pritzker Family Baggage: Tax Saving Offshore Trusts.   My theory is that many of wealthy people who favor higher taxes assume they’ll never have to pay them anyway.

Howard Gleckman,  A New Way to Address the International Tax Mess (TaxVox)

 

Peter Reilly,  IRS Troops Will Take To The Street On Seventh Day In May .  I’m guessing that Peter is referring to the 1960′s  “Seven Days in May,” about an attempted military coup in the U.S.  I’m not sure whether the National Treasury Employee’s Union, which will “take to the streets,” can pull off a coup, seeing that they pretty much run things already.

 

Nick Kasprak,  Weekly Map: Inheritance and Estate Tax Rates and Exemption (Tax Policy Blog)

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The opposite of a sales tax holiday:  Retailer Target Jumps The Gun On Sales Tax (TaxGrrrl). A South Carolina Target store probably made few friends when it started charging a higher sales tax rate a month early.

Patrick Temple-West,  State Republicans divided on tax cuts, and more (Going Concern).

Christopher Bergin, Taxes Don’t Matter Until, Well, They Matter  (Tax.com):

 

Roger McEowen, Trusts, S Corporations, The Material Participation Test and the  Medicare Passive Income Surtax

Good news!  Are you a likely tax audit target? Sequester just might save you(Kay Bell).

Paul Neiffer:  Full Season vs. Early Season Corn

Jim Maule,  A Slight Improvement in the Code Length Articulation Problem.  No, the Internal Revenue Code is not 77,000 pages.  It’s no less a monstrosity for that.

Daniel Shaviro,  Tax policy colloquium, week 13: Itai Grinberg’s “Emerging Countries and the Taxation of Offshore Accounts”

Friday Buzz from Robert D. Flach

Me:The REIT way to reduce taxes?  My new post at IowaBiz.com, The Des Moines Business Record group blog for entrepreneurs.

Going Concern,  AICPA Attempts to Tie Expired Payroll Tax Cut to Normal American Behavior.

Are you irritable? Sleeping less? Impatient with your friends? Putting on weight? Thinking about divorce? Yes? Sorry to hear, you must be going through a stressful time.

Oh, wait, are you an American? Yes?! Whew, you’re behaving normally then. If you were to read this AICPA press release, you might be inclined to believe that your take home pay being 2% lower than last year would have been the cause of all those things…

What are these “friends” of which you speak?

 

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Tax Roundup, 4/26/2013: The Earned Income Credit elephant in the room.

Friday, April 26th, 2013 by Joe Kristan
The Ultimate Swiss Army Knife. Flickr Image courtesy redjar under Creative Commons license.

The Ultimate Swiss Army Knife. Flickr Image courtesy redjar under Creative Commons license.

Christopher Bergin, Dilemma – The Earned Income Tax Credit (Tax.com).  An excellent summary of the problems with the tax law’s biggest welfare program:

Our politicians have tried to do too much through the tax law. And that has created a complicated mess of winners and losers that makes the task of trying to reform it, even to some level of sensible, a daunting one.The poster child for this mess is the Earned Income Tax Credit. Like it or not, the EITC is welfare administered through the tax system. Do we really want our tax system to do that?

The tax law works best if it is seen solely as a tool to finance the government.  Much of its hideous complexity comes from using it is the Swiss Army Knife of public policy.  As you add more gadgets it becomes less useful at being a knife.

Mr. Bergin isn’t afraid to mention the elephant in the room:

And there is another huge problem. The EITC program leaks like a sieve. More bluntly and honestly stated, well-intentioned as it may be, the EITC has been corrupted. Don’t take my word for it. Recently, the Treasury Inspector General for Tax Administration released a report stating that up to one-quarter of EITC payments made in fiscal 2012 were improper. How much does that represent? Try $13.6 billion. In one year. Using a ten-year budget window, that’s $136 billion, and that’s just the tainted stuff.

Supporters say the EITC is a program that “works.”  Can you say that something “works” when it sprays billions to thieves every year?

Read the whole thing.

 

Fairness:

 But the compliance costs imposed by the Marketplace Fairness Act would place smaller upstarts at a distinct disadvantage, which is, I suspect, one reason that market incumbents such as Amazon support the tax. The real cost of taxes is not the revenue out the door to the taxman; it’s the revenue out to the door to the taxman plus all of the costs involved in complying with the tax code.

- Kevin Williamson, via Instapundit

 

Megan McArdle draws  Lessons from Curt Schilling’s Failed Business.  I would add one more: states shouldn’t finance private businesses.  Iowa hasn’t gotten the memo.

Peter Reilly,  How 38 Studios LLC Turned A CPA Into A Warrior

 

Paul Neiffer,  What About Those 1099s?!

Kay Bell,  Sony deal could help singer Lauryn Hill pay delinquent tax bill

Me: But how can we slap money launderers on the wrist if we don’t throw the book at widows?

Phil Hodgen,  How to Compute Net Tax Liability for Form 8854

Patrick Temple-West,  UK’s Cameron fights tax evasion, and more

TaxGrrrl,  H&R Block Offers Apology, Cash To Make Up For Filing Snafu

Howard Gleckman,  Will the Retirement of Max Baucus Open the Door to Tax Reform?

 

Jim Maule, When Taxes Are Cheaper:

And perhaps the short-sightedness and narrow-mindedness is compounded by  the “freedom” mentality that has taken such a hold in modern culture

Yes, let’s all get on board with the new hip “docile submission” mentality.  Because the government knows best!

David Cay Johnston,  Taxpayers Subsidize Rich Anti-Taxers (Tax.com).  Speaking up against the ALEC bogeyman.

 

It’s Friday, you aren’t being productive anyway.  Let’s Play a Game of Accountant/Not an Accountant! (Going Concern)

 

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Tax Roundup, 4/24/2013: Maxed Out. And: Internet sales tax vote looms.

Wednesday, April 24th, 2013 by Joe Kristan
Max Baucus

Max Baucus

Depart, I say; and let us have done with you. In the name of God, go!  Chief Senate taxwriter Max Baucus won’t run for re-election.  (Dealbook, via Going Concern).

Sen. Baucus has been either chairman or minority leader of the Senate Finance Committee for decades, and along with his partner in crime, Sen. Grassley, he bears great responsibility for the nightmare the tax law has become, including Section 409A, the Net Investment Income Tax, The First Time Homebuyer credit, Section 199… Good-bye, before you wreck any more trains.

Related:

Linda Beale, Baucus Will Not Run in 2014  (yay!)

Kay Bell,  Senate Finance Committee chairman’s coming retirement could shape tax reform

 

Congratulations to Paul Caron, proprietor of the TaxProf Blog, on his move from Cincinnati to Pepperdine in Southern California.

 

Kyle Pomerleau,  No Surprise: The Overly Complex EITC is Plagued with Billions of Dollars in Improper Payments (Tax Policy Blog)

Patrick Temple-West, Obama budget taxes more Americans, and more

Tony Nitti, Quantifying The Recent Tax Increases: What Is A Wealthy Taxpayer’s “Fair Share?”  As far as some people are concerned, it’s always more than they are paying.

 

Daniel Shaviro,  Senate vote on the “Marketplace Fairness Act”

Howard Gleckman,  Five Things You Should Know About the Online Sales Tax Bill (TaxVox).  He thinks it’s just lovely.

Joseph Henchman,  Senate Voting This Week on Expanding State Authority to Collect Internet Sales Taxes (Tax Policy Blog)

Clint Stretch,  Getting It Wrong: Energy Tax Policy (Tax.com):

Winston Churchill said that Americans can be counted on to do the right thing, after we have exhausted all other possibilities.  He might have added that we usually start with the least direct and most complex approach.  So it is with the energy tax policy expressed in President Obama’s FY 2014 budget.

I like this sentence: “By their nature, tax credits add complexity to the law and often reward behavior that would occur even without the credits.”

 

Robert D. Flach asks, DIRECT DEPOSIT – IS THERE A PROBLEM?

So far two clients have contacted me to report an issue – one with a 2011 refund andone with a 2012 refund.  In both cases the refund was not directly deposited to the requested account.  Instead it was applied to the subsequent year’s estimated tax.  It was as if the taxpayer, or I, had entered the full amount of the refund on Line 75, although we clearly did not.

This isn’t a problem I have seen.  Robert famously doesn’t e-file his returns.   I wonder if it’s a simple keypunch error at the service center.

Jason Dinesen,  In a Same-Sex Marriage? Watch Your Federal Tax Withholding

Jim Maule, Putting It in Writing Makes Good Tax Sense.  If you use the right words, of course.

Peter Reilly, How To Shatter The Public Accounting Glass Ceiling ?  Sometimes I think it’s that women see the hours and stress involved and wisely say “screw this.”

 

TaxGrrrl, Ready Or Not: Lauryn Hill Sentencing For Tax Evasion Postponed

Tax Trials,  Tax Court: Second FPAA Invalid, Cannot Confer Jurisdiction

Robert D. Flach is buzzing again!

 

I love my hometown: Elvis impersonator engages police in 30-hour standoff in Des Moines (RawStory.com, via The Beanwalker)

Stoned people should not throw glass bongs in houses.  Glass bong breaks two state windows (Jason Clayworth)

 

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Tax Roundup, 4/22/13: IRS unpaid holidays. And buying a round for the State.

Monday, April 22nd, 2013 by Joe Kristan

Sharing your drink with the state.  The Tax Foundation maps how happy your state is when you wet your whistle:

 

20130422-1

Iowa is #6.

 

 

Just because an LLC is taxed like a partnership doesn’t mean that every LLC owner can act like a general partner, as Colleen MacRae explains:

Last week the Iowa Court of Appeals in Three Minnows, LLC v. Cream LLC, held that a non-managing member did not have the authority to bind an LLC to a contract the member signed on behalf of the limited liability company. 

Not every LLC member can obligate an LLC.

 

TaxProf,  IRS to Close to Public for Five Days Due To Employee Furloughs.  That doesn’t mean the Public can close to the IRS for five days, unfortunately.  Yet another example of how the preparer regulation initiative is a colossal waste of agency resources needed elsewhere.  Related: David Cay Johnston, IRS To Close for Five Days (Tax.com).

 

Peter Reilly,  IRS Not Screening Informant Reports Well .   They have other priorities than dealing with the tax collection opportunities dropped right in their laps.

 

Jim Maule,  The “Rain Tax”?

Kay Bell,  World governments mounting global effort against tax evasion.

TaxGrrrl,  As Many Celebrate 4/20, Feds Still Won’t Budge on Regulation and Taxation of Marijuana.   As long as Sec. 280E keeps even legal pot dealers from deducting expenses, it will be a tough business to make a living in, after tax.

Martin Sullivan, Horse Racing and International Tax (Tax.com)

Russ Fox,  Bayern Munich Head Reports Self for Tax Evasion.  Swiss bank accounts are involved.

Tax Trials,  IRS Announces Special Filing Extension for Boston Area Taxpayers

 

The Critical Question:  Is There Such Thing as a Free Lunch? (Ellen Kant, Tax Policy Blog)

 

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Tax Roundup, 4/19/2013: IRS agents charged with scamming jobless benefits. And post-4/15 thoughts

Friday, April 19th, 2013 by Joe Kristan

More20130419-1 evidence that preparers are out of control and need IRS employees to keep an eye on them:  24 IRS Employees Indicted for Theft of Government Benefits (TaxProf).

24 current and former employees of the Internal Revenue Service have been charged for crimes relating to fraudulently obtaining more than $250,000 in government benefits.
          
          Thirteen of the current and former IRS employees have been charged federally with making false statements to obtain unemployment insurance payments, food stamps, welfare, and housing vouchers. All thirteen, individually charged in separate indictments, are alleged to have falsely stated that they were unemployed while applying for or recertifying those government benefits.

They may have been right about being unemployed, just wrong about the timing.

 

We have to show the government our returns, so it’s only fair:  Iowa Gov. Branstad plans to show income tax returns to reporters (AP)

Howard Gleckman,  What Ever Happened to State Tax Reform? (TaxVox)

Kay Bell,  Obama’s 2012 effective tax rate was 18.4 percent; Now what do your members of Congress pay in taxes?  Make them do their returns on a live archived webcast, with a rolling comment bar.

Peter Reilly,  How Not To Care About IRS E-mail Snooping

 

William Perez,  IRS Provides Penalty Relief Due to Boston Marathon Explosion and Storms in South and Midwest

Patrick Temple-West,  Tax extension after Boston attack, and more (Tax Break)

Russ Fox, RS Gives Extra Three Months for Filing and Payments to Boston-Area Taxpayers; Massachussetts Deadline Should be the Same

TaxGrrrl,  So You Missed Tax Day, What Next?

 

Andrew Mitchel,  Code §911 Foreign Earned Income Exclusion – Adverse Conditions

Freakonomics Blog, The History of Taxes

Megan McArdle,  Our Tax Code is Too Complicated. Here’s How to Simplify It. “Get rid of the corporate income tax. It’s not worth it, and there are better ways to collect the money.”

Janet Novack,  Tax Geeks: Make Tax Filing Easy, Kill The Mortgage Deduction, Tax  CPAs

Jim Maule, Tax Compliance and Non-Compliance: Identifying the Factors

Trish McIntire,  You Need the Numbers Before You Do the Return

Scott Drenkard,  Perry Calls for Reforms of Texas’ Margin Tax (Tax Policy Blog).  It could use it.

Christopher Bergin, It Just Isn’t Fair (Tax.com):

The headline producing data  in the report was that revenue loss – about $181 billion – from corporate tax expenditures in 2011 was “approximately the same size as the amount of corporate income tax revenue the federal government collected that year.” That makes a headline grabber; here would be my version: “Corporations Got More in Tax Breaks Than They Paid in Taxes, Government Says.”

It’s almost like the tax exists only so the politicians can carve loopholes for their friends.

 

Indeed.  It’s Rarely a Good Sign When a Tax Prep Business Closes Its Doors Three Days Prior to April 15th (Going Concern)

Just plead “miseducation” and leave it at that.  Lauryn Hill asks judge for leniency in  upcoming tax evasion sentencing claiming she failed to file taxes due to threats and withdrawal from society (dailymail.com.uk)

Tony Nitti,  Girl, You Know You Better Watch Out: Singer Lauryn Hill To Be Sentenced On Tax Evasion Charges

Jack Townsend, Bank Frey Executive and Swiss Lawyer Indicted

Can you blame them?  U.S. Taxpayers Buy a Lot of Weapons  (Jeremy Scott, Tax.com)
“The sum of the square roots of any two sides of an isosceles triangle is equal to the square root of the remaining side.”  Your tax filing stress probably made you smarter (Kay Bell)

How I spent April 15.  (Marketwatch, via Going Concern).  I approve of the comment at the bottom of the GC post.

Me too.  Tax Season 2013: Mostly Unpleasant, And I’m Glad It’s Over  (Jason Dinesen)

Robert D. Flach returns!  THAT WAS THE TAX SEASON THAT WAS 2013

Me: Back to work.

 

News you can use.  Hone your corporate tax evasion skills (Boston.com)

 

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Tax Roundup, 4/10/13: Return-free filing? Mistakes not to sweat. And: W-2 Donuts?

Wednesday, April 10th, 2013 by Joe Kristan
Flickr image by Samat Jain under Creative Commons license

Flickr image by Samat Jain under Creative Commons license

Should we just get a bill from the IRS, instead of filing returns?  That’s something Janet Novack seems to be thinking about.  She has two guest posts on the issue:

Joseph Bankman, The Case For Easy, Free Tax Filing

Arlene Holen,  Five Fallacies About Return-Free Tax Filing

Some people fear return-free filing will separate citizens further from the costs of government.  I think that is caused by an income tax that now is effectively only on high-income earners.  When 51% can send the bill to the other 49%, bad policy seems inevitable.

 

Mistakes, mistakes.  The IRS has issued a list of “Common Errors to Avoid,” ably covered by Jana Luttenegger (Common Errors to Avoid in Tax Returns) and TaxGrrrl (Eight Common Tax Filing Errors And How To Prevent Them).

It makes me wonder: if there are “Errors to avoid,” are there errors we should seek out, or at least not sweat?  I can’t think of errors I’d want to make on a tax return, but I can think of some that I wouldn’t lose sleep over:

1. Forgetting to check the “presidential election campaign fund” box.  After all, your entire tax bill is basically the federal election campaign fund.

2. Misspelling the name of a stock on Schedule D.

3. Writing a “smiley face” next to the tax refund line.

4. Forgetting to update your “occupation” on the signature line when you change jobs.

Any other ideas?

 

Kay Bell, Tax returns, refunds running behind last year’s levels

Peter Reilly, GLAD Alerts Same Sex Couples To Act Quickly To Preserve Refund Rights

Clint Stretch, Are Roth IRAs Your Best Choice? (Tax.com)  I think that they are if you can’t get a deduction, but not otherwise.

Russ Fox,  Bozo Tax Tip #3: Use a Bozo Accountant!

Day traders have their own April 15 deadline.  Yesterday’s 2013 filing season tip.  Today’s tip goes up later this morning.

 

Jack Townsend, Lies, Dams Lies and Statistics – DOJ’s Promo Stats.

Jim Maule,  How To Protest a Tax: Part Two.  It involves dance.  If it makes Prof. Maule bust a move, it’s worth it!

Tony Nitti,  The Masters: A Tax Break Unlike Any Other.  The tax-free Masters windfall for Augusta homeowners.

David Brunori, Prohibition Through Taxation (Tax.com).  If you jack up taxes beyond reason, people cheat.

Howard Gleckman, An Opportunity to Really Fix Social Security (TaxVox)

 

 

No jest. Shirley man pleads guilty in multimillion-dollar tax fraud scam (Newsday)

No, it’s not me. West Des Moines Man Banned from Bar Until He Can Pay Tab (West Des Moines Patch)

 

Megan McArdle, There’s No Such Thing As A Free Lunch in Taxland.

The core problem is that the IRS cannot look into the hearts of companies and see which of them really needs to provide free lunch to their employees in order to have a healthy, vibrant company, and which of them is doing this in order to provide a tax-free boon to their workers. 

In case anyone asks, donuts are critical to a healthy, vibrant tax practice.

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Tax Roundup, 4/5/2013: Illegally Blonde edition. And: Vaudtitor vacates.

Friday, April 5th, 2013 by Joe Kristan

20130405-1So a Blonde and a lawyer walk into Tax Court.  She loses.

No, the Tax Court has not started to report petitioner hair color in its decisions, along with the names of the attorneys and the resident state (“petitioner resided in Iowa and was brunette during the tax years at issue but gray at trial”).   This taxpayer’s first name is actually Blonde.  And she was an attorney, at least until 2006, when she pleaded guilty to failure to file tax returns. From the Tax Court:

Since the only issue currently before the Court is whether Blonde Grayson Hall signed the Form 4549 under duress we will refer to Blonde Grayson Hall as petitioner.

Petitioner attended the University of Michigan Law School and was admitted to practice law in 1982. Petitioner was the chief executive officer of Hall & Associates, LLC, a law firm in Philadelphia, Pennsylvania, from 1995 to 2006.

As part of her plea deal, the taxpayer filed Form 4549 agreeing to assessment of additional tax liabilities for several tax years.  She apparently had second thoughts:

Thus, the issue before us is whether Blonde Grayson Hall should be relieved of her agreement in the Form 4549 because it was signed under duress.

Of course, duress is what a plea deal is all about.  You accept a bitter pill because you think it could get a lot worse if you go to trial.  While this is a fearsome and sometimes abused weapon in the hands of prosecutors, the Tax Court said it wasn’t the kind of duress that makes the Form 4549 go away (my emphasis):

The requirement that petitioner sign the Form 4549 stems from the Government’s efforts to prosecute her for admittedly criminal conduct and to collect taxes and penalties. No doubt, given the circumstances, these efforts were zealous and disadvantageous to petitioner. However, every criminal defendant who is offered a plea agreement faces an equally unpalatable decision — accept a legally authorized plea agreement that will include terms disadvantageous to the criminal defendant or go to trial which may result in significantly worse consequences for the criminal defendant. This unpalatable decision does not constitute duress or involuntariness.

The taxpayer is stuck with the Form 4549 that she signed.

The moral: If you plead guilty to criminal tax charges, it is very hard to fight the assessment for the years covered by the plea.  Even if you are a lawyer, and even if you are Blonde.

Cite: Hall, T.C. Memo 2013-93.

 

Iowa’s loss, Government accounting’s gain.  Iowa’s longtime State Auditor David Vaudt is leaving office to head the Government Accounting Standards Board.  He’s fought the good fight for honest reporting of state finance.  It will be hard to find a replacement as good.

His term in office has covered governors of both parties, all of whom found him more or less annoying with his objections to budgetary games.  His office did excellent work in the film credit scandal, issuing a comprehensive report showing that 80% of the credits were improperly granted.  Best of luck to him in his new job.

 

William McBride,  Standard Economics Says Capital Income Taxes Should Be Zero (Tax Policy Blog).  He quotes Garett Jones:

Under standard, pretty flexible assumptions, it’s impossible to tax capitalists, give the money to workers, and raise the total long-run income of workers.    

Not, hard, not inefficient, not socially wasteful, not immoral: Impossible

Yet the effort to do so never ends.  Nor the harm it causes.

 

Christopher Bergin, ‘Commissioner-Less’ (Tax.com):

The Internal Revenue Service is currently without a Commissioner. Douglas Shulman, the 47th IRS Commissioner stepped down last November.And from what I’m starting to hear, the IRS may not have a new Commissioner for as long as close to two years. That is not a good thing.

Still an improvement over the last one.

 

Eric Todor, Moving to a Territorial Tax May Not Be the Windfall Multinationals Expect (TaxVox)

David Cay Johnston, Unkind to Charity (Tax.com) “The tax rules on charities, both the many good and the few bad, are about to get much more anti-giving.”

 

Jack Townsend, District Court Denies Bankruptcy Discharge for BLIPS Shelter Investor

Kay Bell, William Shakespeare, tax cheat

William Perez, GoodApril Online Tax Planning Application

Perverse incentives.  Whoa, Cowboy: Tax Laws May Make Romo Highest Paid NFL Player (TaxGrrrl)

 

News you can use: You Are a Terrible Investor and You Should Stop That (Megan McArdle).  Actually, it’s excellent advice that I try to follow.

Russ Fox,  Bozo Tax Tip #6: Just Don’t File.  It sure didn’t work for the Blonde.

Jim Maule,  How to Protest a Tax:

According to this report,  dozens of people supporting a bill to repeal a state sales tax on amounts charged by dance establishments decided to dance in protest. According to the report, the protestors demonstrated the salsa, the flamenco, the tango, and even a conga line. Considering the speed with which legislatures get things done, perhaps they engaged in some slow dancing, though the report does not mention it.

First they came after the big bands, but because I was a conga dancer, I did nothing.

 

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