Extended 1040s are due two weeks from today! Sorry for not posting yesterday, but I’m sure many of you understand. I was laying in canned goods and ammo for the government shutdown.
The TaxProf has the IRS Shutdown Plan. You can still file, but the examiners get a day off.
I like Don Boudreaux’s take:
If I walk into a supermarket to buy a few artichokes and discover that the supermarket has no artichokes for sale that day, I don’t pay the supermarket for the artichokes that I don’t get. So shouldn’t we taxpayers be relieved of the obligation to pay for the national-government services that we are not now receiving?
It implies the big difference between things we get from businesses and things we get from the government: if we don’t like what they have at one store, we can go to another, but if we don’t like the service from Uncle Sam’s Essentials, we can’t exactly take our business elsewhere.
Andrew Lundeen and Kyle Pomerleau explain What Happens When There Is a Government Shutdown (Tax Policy Blog):
From 1976 to present there have been 17 shutdowns and like this shutdown, many were caused by political disagreement. For instance, the government shutdown for 12 days in 1977 over a political fight between the House and the Senate over Medicaid policy.
The average length of past government shutdowns is 6.4 days, but this is no indication of how long this shutdown will last. During the Reagan administration there were several shutdowns that only lasted one day.
So either it’s not the end of the world, or the world ends a lot.
Glass half-full: Shutdown Will Stop IRS Audits, but Not ACA Implementation (Jeremy Scott, Tax Analysts Blog)
Janet Novack, Federal Government Begins First Shutdown In 17 Years
William Perez, IRA Recharacterizations Due by October 15th:
“Recharacterizing” means, quite simply, we can change the character of the IRA: if the contribution was made to a traditional IRA, we can re-characterize it to a Roth IRA; and if the contribution was made to a Roth IRA, it can be recharacterized to a traditional IRA.
Trish McIntire, It’s Here…
The Health Insurance Marketplace (HIM) opened today! The Affordable Care Act (ACA) mandates that almost everyone must have health insurance by January 1, 2014. The HIM is a way for anyone not covered by an employer’s affordable plan to shop for health insurance. Let’s face it the ACA is complicated and the HIM part is no exception. This post will cover the highlights of the Marketplaces to give you an overview of what will happen.
The Health Care Fairy is the Tax Fairy’s sister. Believers in either one end up disappointed.
Missouri Tax Guy, How To Write Off Travel Expenses As Business Expenses. ”You can’t go on a one-day business trip and stretch it into a week of sightseeing, and then deduct anything as business-related.”
4 Reasons the Medical Device Tax is Bad Policy (Kyle Pomerleau, Tax Policy Blog)
The Medical Device Tax Should Not Be Repealed (Tax Justice Blog):
One argument made by the industry against the medical device excise tax is that it singles them out for higher taxes. The reality, however, is that the excise tax was passed as one of many levies on various healthcare sectors to help pay for health insurance expansion.
That apparently would include the 10% excise tax on tanning booths that is part of Obamacare financing. They say the tax is paid by something called “various healthcare sectors.” That’s a fancy way to say “patients.”
Jack Townsend, Zwerner Rises to Defense Against Multiple FBAR Penalties:
Readers will recall that, in an unexpected development, Treasury assessed and DOJ Tax sued to collect the 50% FBAR penalty against Carl Zwerner for four years. Up to that point, based on the information publicly available (principally from offshore account plea convictions), Treasury had only assessed a single FBAR of 50% for the highest year. Thus, it was of considerable interest — and angst — to taxpayers and practitioners that Treasury would assert 4 years of FBAR penalties.
That could get expensive.
Brian Mahany, FBAR, FATCA Are Not Dirty Words! They can certainly trigger some, though.
Peter Reilly, Has Kent Hovind Given Up Fight Against IRS ? Mr. Hovind is famous for opening a theme park based on the idea that humans and dinosaurs co-existed. I suppose if you hang around politicians, you could conclude that.
Robert D. Flach is Buzzing the government shutdown.
Nothing is stopping you from writing a check right now, says a cynical tax blogger. “Tax Us More!” Say Some Wealthy Pennsylvanians (Jim Maule) Because they can pay more taxes any time they want, they really mean “tax other people more.”
Career Corner: Ex-PwC Employee Discovers Just How Limiting a Career-Limiting Move Supporting Terrorism Can Be. (Going Concern) I worked there when I was a very green new accountant, and I was frequently terrified.