We’re number one! Weekly Map: Top State Corporate Income Tax Rates (Nick Kasprak, Tax Policy Blog):
Just another dubious leadership role for Iowa.
Monday Open Thread: The Tax Man Cometh. (The Other McCain). If you were tax dictator, what would be the first bad tax law to go? I would get rid of (in order) The AMT, Section 409A on deferred compensation, and the new net investment income tax. But there are so many worthy candidates…
Philip Panitz, guest-posting at Janet Novack’s blog, How Real Estate Investors Can Protect Themselves From The IRS:
So save all your expense receipts, try to keep a log, and try to stay friendly with—and maintain contact information for—workers and tenants. You might, for example, need to call as a witness a gardener who can say he got his instructions directly from you instead of a real estate company. And maybe the guy who is always grousing about his plumbing needing fixing or the woman who wonders why the gardener missed a spot in his watering will be asked to testify that they kvetched to you —not a real estate agent–when the toilet needed fixing.
U.S. film festival cancels award to UK film after tax scam. Perhaps the least of actress Aoife Madden’s problems, considering the 54 month prison sentence she got out of it.
Jason Dinesen, Married Filing Separately, Iowa Tax Returns & Itemized Deductions — Am I Missing Something? On the quirks of Iowa’s separate-combined filing status.
Roberton Williams, DOMA’s Tax Hassles for Same-Sex Couples
Clint Stretch, Which Kind of Imbalanced Solution Do You Want? (Tax.com). Mr. Stretch is, or maybe was, a career lobbyist for a national accounting firm that I once worked for. Considering that his career involved crafting loopholes, this is a fascinating observation (my emphasis):
I am no fan of spending through the tax code. Tax expenditures are government grants with the barest of qualification criteria administered by an agency with no subject matter expertise when it comes to the purpose of the incentive. The incentives – from business tax credits to mortgage interest deductions – may influence behavior at the margins,
but many of the beneficiaries are rewarded for doing what they were going to do anyway. Like direct spending; tax expenditures are spending and individuals do benefit. Although a rate reduction or a fiscally sound government might cushion the blow, reducing tax expenditures will be another spending cut that takes resources away from affected taxpayers. We should stop talking about spending versus taxes. Instead, we should work on how to make reasonable, holistic reductions in major areas of government influence.
That’s why I think he must have retired. I don’t think he could say stuff like that if he were still lobbying.
Jack Townsend, IRS Identifies Its Dirty Dozen Tax Scams for 2013
Principles of the tax law. Heads They Win – Tails You Lose (Paul Neiffer). The Obamacare tax on wage income cannot be offset with farm losses.
No, no, that’s not how it works, Senator. You’re supposed to give them money. Bored Politicians Taxing Strippers (David Brunori, Tax.com)
Now the IRS is in trouble. William Shatner ‘appalled’ at IRS Star Trek video spoof (Kay Bell)
News you can use. If You’re Failing the CPA Exam, You’re Not Making the Most of Bathroom Breaks (Going Concern)