Posts Tagged ‘Mike Ralston’

Tax Roundup, 10/13/15: Thoughts for those facing the due date. And: Ex-Iowa revenue director backs sales tax rule.

Tuesday, October 13th, 2015 by Joe Kristan

Accounting Today visitors, click here to go to the YMCA story.


20151013-4It’s time. The extended return deadline is Thursday, October 15, and no more extensions are available (unless, perhaps, you are in South Carolina, drying out from the floods, or you are in an overseas combat zone).

Haven’t filed yet? Haven’t even started? Russ Fox has some thoughts for you:

Somewhere, there’s a procrastinator wondering that exact question. He’s likely thinking, “I don’t have to do anything; I have until October 15th!” That’s not a good answer (with one exception [1]).

First, most tax professionals will not be able to fit you in. I took in one new client appointment this week—and he’s filling a cancellation. Determine your income, gather all your documents, and do your best. Tax forms are available online (the IRS website is actually quite good). Commercial tax software, though flawed [2], is a good choice at this point in time.

That makes sense. You really shouldn’t file late. It’s habit-forming, and it’s a bad habit. If you have a refund coming, you will probably lose it if you don’t file in two years — and without a due date deadline, that happens a lot. If you don’t file, you can’t get a 2016 ACA advance premium credit, making you out-of-pocket for the whole thing until you file your 2016 tax return, assuming you get around to that one.

Russ has another comment worth noting:

I disagree with fellow tax professional Robert Flach on his description that all tax software is fatally flawed. For individuals in simple situation it works perfectly. It doesn’t make math mistakes. And it usually allows for seamless electronic filing. I agree with Robert that the ability to look at a return and evaluate what’s on it (does it pass the smell test) is vital but when you’re up against a deadline, you don’t have a choice.

While I am in awe of Robert’s practice of doing his returns by hand, I don’t recommend it for anyone else. While software, like any human endeavor, is “flawed,” it’s much less flawed than a do-it-yourself tax filer without software. Tax software prevents a lot more mistakes than it causes.


Speaking of Robert Flach, it’s Tuesday, so he has fresh Buzz! His artisanal mind wanders from the size of the tax law, charity scams, and maintaining small business records. Presumably posted with flawed software!




Mike Ralston, Manufacturers shouldn’t be taxed twice. The President of the Iowa Association of Business and Industry, and former director of the Iowa Department of Revenue, defends the new proposed rules broadening the definition of “manufacturing supplies” exempt from sales tax: “To the best of my knowledge, no one inside the Statehouse has argued that the proposed rule is bad policy.” David Brunori is quoted.


Tulsa World, Doug Pielsticker: Sentence more than justified. “Laid-off employees blamed the company’s bankruptcy partly on Pielsticker’s lavish lifestyle, which included a $1.3 million mansion, a Bentley and a wedding with 1,000 guests at Philbrook Museum.” We covered the sentencing yesterday.


John Mickelson, Importance of succession planning for privately held businesses (

TaxGrrrl, Be Smart When Being Charitable: IRS Warns On SC Flood Relief Scams

Keith Fogg, The Right Instincts and the Wrong Decision Leads to No Relief as an Innocent Spouse – An Adam and Eve Story (Procedurally Taxing) “Reading the opinion, I realized that I had watched the trial with my students and we had analyzed it in class reaching the same conclusion as Judge Lauber but still feeling sad for the individual who sought relief.”

Peter Reilly, Volkswagen’s Emissiongate May Include Tax Crimes

Jack Townsend, Schumacher, UBS Banker Enabler, Sentenced to Probation Only and Fine. Once again, slapping the real international financial criminals on the wrist while shooting the jaywalkers.

Kay Bell, Some in GOP question Ryan’s conservative commitment; others say he serves the party best as tax-writing chair.  

William Perez, Changes in Tax Deadlines to Take Effect in 2017 (Plus Deadlines for 2015 and 2016). There’s a big one this week.




TaxProf, The IRS Scandal, Day 887. Today’s installment features some guy who think the IRS isn’t meddling in politics enough.

Scott Greenberg, Bobby Jindal’s Tax Plan Would End the Employer-Sponsored Health Insurance Exclusion (Tax Policy Blog):

Some of the features of Bobby Jindal’s recently released tax plan – fewer tax brackets, ending the estate tax, and eliminating itemized deductions – should be familiar from other Republican candidates’ tax plans. But a few elements of Jindal’s plan stand out from the rest of the field. Specifically, Jindal would significantly change the tax treatment of employer-sponsored health insurance plans.

It would replace the employer exclusion for health care with a “standard deduction” for insurance costs.


Bob McIntyre, We (Don’t) Need to Talk about Bobby Jindal (Tax Justice Blog). We don’t like him. We’ll pretend he’s not there.

Renu Zaretsky, A Speaker, A Speaker, Their Kingdom for a Speaker. Today’s TaxVox headline roundup covers the House Speaker situation, Hockey free agents, and the upcoming Democratic candidate debate.

Career Corner. The Rise of the Lifestyle Accountant (Chris Hooper, Going Concern).



Tax Roundup, September 17, 2012: non-1040 extension deadline day! Also: Iowa bluffed?

Monday, September 17th, 2012 by Joe Kristan

20080410-1ibiz.jpgToday is the extended due date for 2011 calendar year 1041, 1065, 1120 and 1120-S returns.

For pass-throughs, the penalty for late filing is $195 per K-1, per day.  E-file if you can; otherwise go with Certified Mail, Return Receipt Requested or an approved private delivery service.



Was Iowa bidding against itself for fertilizer plant?  From the Quad City Times:

When Iowa Gov. Terry Branstad pulled the trigger on the biggest incentive package in state history, he said he did so, in part, because of competition from neighboring Illinois.

But economic development officials with Illinois Gov. Pat Quinn’s administration say they wanted no part of the project after they got wind of Iowa’s “excessive” bid for the $1.4 billion fertilizer plant for which the Branstad administration offered up to $240 million in state and local tax breaks.

“To be clear — the state never put an offer on the table. We recognized early on that Iowa’s bid was excessive, and we were not going to engage in a bidding war,” Marcelyn Love, communications manager for the Illinois Department of Commerce and Economic Opportunity, wrote in an email.

True, the word of Illinois politicians isn’t the most reliable thing in the world.  Then again, neither is the word of people telling you why you should give them money:

Tina Hoffman, spokeswoman for the Iowa Economic Development Authority, said the authority relied on the word of Orascom corporate officials and news reports to determine that Illinois was making a play for the fertilizer plant.

“Company officials indicated the tax savings would be in excess of $130 million. That information was validated when an Illinois senator was quoted in several news outlets about the bill he was sponsoring to assist a project like the one Orascom was proposing,” she wrote in an email.

All right, then!   If you say so, here’s your $107 million!

Subsidizing the fertilizer plant would be unwise even if there were a bidding war  with Illinois.  It’s never wise to take money from your taxpayers to lure and subsidize people.  As I’ve pointed out, it’s like taking your wife’s purse to the bar to buy drinks for the girls.  It’s neither effective or impressive.   But apparently there was no real bidding war, and Orascom was going to come to Iowa anyway;  if so, they just bluffed Iowa into helping pay for it — and maybe also into indirectly helping finance their purchase of The Weitz Company, Iowa’s oldest and largest construction contractor.   Not exactly a shining moment for Iowa tax policy.


Holman Jenkins of the Wall Street Journal rips wealthy whistleblower Birkenfeld, Grassley:

[Birkenfeld] told Bloomberg: “I’m the most famous whistleblower in the history of the world. It’s a question of doing the right thing, and that’s what I did.”

What would have been right was not participating in tax evasion in the first place.

The author of the whistleblower law that so benefited Mr. Birkenfeld was none other than prairie populist Sen. Charles Grassley, who issued a statement this week: “An award of $104 million is obviously a great deal of money, but billions of dollars in taxes owed will be collected that otherwise would not have been paid.”

This is the same Mr. Grassley last heard calling for AIG workers “to resign or commit suicide” during the 2009 retention bonus furor, which also saw the New York Attorney General implicitly threatening to publish the names of innocent AIG employees who didn’t “voluntarily” relinquish money they were legally entitled to.

This is the same Mr. Grassley whom Wikipedia baldly states “repeatedly introduced measures that increase the level of double taxation on American citizens living abroad, including retroactive tax hikes.”

Need we add that Mr. Grassley’s longtime aide, who actually drafted the whistleblower law, now represents Mr. Birkenfeld and stands to collect an interesting percentage of the award Mr. Grassley so obligingly applauds?

Senator Grassley has been a major play in tax policy for nearly three decades.   The state of the tax law today isn’t exactly a tribute to the senator.


I’m Barack Obama, and I approve this press release.  From a Department of Justice Press Release:

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.

OK, if it’s President Obama’s task force, it’s also President Obama’s IRS that is letting $5 billion annually go out the door to identity  thieves.  It’s President Obama’s IRS that is tormenting innocent Americans for paperwork foot-faults so that President Obama’s Justice Department can slap internationa tax criminals on the wrist.  Glad that’s cleared up.

Mike Ralston,  Iowa View: Time to stop a tax hike on all Americans’ dividends:

The current federal tax rates on investment income — dividends and long-term capital gains — expire at the end of this year. Today, the top tax rates for both dividends and capital gains are capped at 15 percent. But if Congress and the president don’t act to extend them, the top tax rate on capital gains will rise to 20 percent and the top tax rate on dividends will rise to 39.6 percent.

It’s worse than that.   With the Obamacare tax hikes set to kick in, the actual top rate for dividends will hit 43.4% — nearly tripling the old top rate of 15%.


Kay Bell,  Sequestration’s blunt and indiscriminate budget cuts.  Also, tiny.  From Veronique de Rugy:


Jim Maule,  When Tax Ignorance Meets Political Ignorance.  Yet while the good professor (rightly) bemoans voter ignorance, he insists that it is wise to put more decisions in the hands of the polticians elected by the same ignorant voters.

Paul Neiffer,  Mistakes to Avoid in Lifetime Giving – Part 2

Jack Townsend,  Whistleblowers for Swiss Banks Appear to be Live and Well

Jason Dinesen,  RTRPs, CPAs, Attorneys and Grandfathering

True:   1099s From Insurance Companies – Don’t Ignore But Don’t Take At Face Value Either (Peter Reilly)

Patrick Temple-West,  Financially troubled parts of Europe consider taxing church properties, and more

TaxGrrrl,  Are Federal Taxes Driving Smokers to Stop Lighting Up?

Will Freeland,  NYC Ban on Large Sodas Plagued by Same Problems as Soda Excise Taxes (Tax Policy Blog)

Howard Gleckman,  What Mitt Romney Didn’t Learn from Ronald Reagan (TaxVox)

Anthony Nitti: For A Rich Guy Who’s Only Been Divorced Once, R Kelly Certainly Doesn’t Seem to Have A Lot of Cash

Good question:  WHAT TO DO?  (Robert D. Flach)

News you can use:  If You Get a Tax Refund That’s Someone Else’s, Don’t Spend the Money  (Russ Fox)