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.
Howard 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
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)
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.