Posts Tagged ‘Tim Geithner’

Tax Roundup, 9/5/2012: Laying it on thick for the fertilizer plant. Math is hard. So is tax, even with TurboTax.

Wednesday, September 5th, 2012 by Joe Kristan

Governor Branstad’s administration is making a big push to promote STEM education: Science, Technology, Engineering and Math.  This headline in the Des Moines Register today shows how badly we need math education, especially in Iowa’s “Economic Development” bureaucracy:

165 jobs, $110 million in aid

Officials mull boosting incentives to keep $1.3 billion fertilizer plant project in Iowa

This is the worst kind of smokestack chasing, which is always the preferred approach of “economic development officials.”  Never mind that Iowa already has competing fertilizer plants — as Sioux Citian Debi Durham, Iowa chief official economic developer, surely knows.    Never mind that Iowa and Illinois are getting played shamelessly by Orascom, the fertilizer company.  Never mind that the money comes from taxes paid by existing competitors, and by thousands of unsubsidized businesses like ours, and our employees.  Never mind all that — it’s about buying a ribbon-cutting, not about making the state a good place for everyone to do business Unless, of course, Roth & Company gets a nice state check for $21.3 million for the jobs we have already created.

At least some folks are catching on to the game.  From the article:

Orascom has attracted a diverse group of opponents, from parents, environmentalists and liberal groups such as Iowa Citizens for Community Improvement and Iowa Policy Project, to conservative groups such as Public Interest Group, Lee County Tea Party and Americans for Tax Reform.

So there’s agreement from left to right that it’s a bad idea for the state.  But if politicians think it’s a good idea for them, it will go through.

Related: Taking your wife’s purse to buy drinks for the girls and  LOCAL CPA FIRM VOWS TO SWALLOW PRIDE, ACCEPT $28 MILLION

 

Who catches the identity thieves?  Hint: it’s not Doug Shulman’s IRS.  From the Bradenton (Florida) Patch:

Det. B. Pieper from the police department’s gang unit put together the case by paying close attention during a routine drug bust…

Pieper was one of several detectives watching traffic coming to and from a house where police suspected drugs were sold. He said he and his partner watched a car leave the house and then run a stop sign. When they pulled over the car Brydson was in the passenger seat with a laptop and a bag of marijuana on her lap.

Brydson quickly closed the laptop, which made Pieper suspicious. When he searched her purse, he said he found several TurboTax debit cards with different names on them. He also noticed a 60-step instruction sheet on how to perform tax fraud through TurboTax.

So local cops have to do the IRS’s job of stopping the thieves who take $5 billion of our taxes annually while the IRS is busy building a new preparer regulation bureaucracy at the behest of the national tax prep firms.  Priorities!

 

 Courtney A. Strutt Todd: Congratulations on Your Scholarship. Don’t Forget to Pay Uncle Sam (Davis Brown Tax Law Blog)

TaxProf, Tax Planks in Democratic Party Platform

Andrew Mitchel, Partnership Definition

Martin Sullivan, The Effects of Interest Allocation Rules in a Territorial System (Tax.com)

Linda Beale, Romney and Private Equity’s Questionable Schemes for Paying Very Little Tax

Kay Bell, Tax moves to make in September 2012

Robert D. Flach has a new Buzz roundup of tax blog posts.

Jim Maule offers A Peek at the Production of Tax Ignorance.  It’s booming.

I think spending less than you earn works even betterDo Mandates or Tax Subsidies Do a Better Job of Boosting Savings?

Have a nice dayCBO: Federal Healthcare Spending Will Exceed Discretionary Spending by 2016 (William McBride, Tax Policy Blog)

GIGO: it’s Tax Court Doctrine!  From a case rejecting a taxpayer’s use of TurboTax as an excuse for a bad return:

It is apparent that a portion of the information petitioner entered into the TurboTax program was incorrect; hence the mistakes made (which resulted in the underpayment) were made by petitioner, not TurboTax. TurboTax is only as good as the information entered into its software program. See Bunney v. Commissioner, 114 T.C. 259, 267 (2000). Simply put: garbage in, garbage out.

Tim Geithner, call your office.

Cite:  Bartlett, T.C. Memo 2012-254.

Related:  Reason #17 to Hire Me: Blaming Turbo Tax Can Not Protect You From Penalties (Anthony Nitti)

 

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Shooting more jaywalkers

Wednesday, September 29th, 2010 by Joe Kristan

It looks like the IRS and the Treasury, so gentle on Tim Geithner’s serial tax underpayments, are making up for it by clobbering foot-faults by U.S. overseas employees. Phil Hodgen relates yet another FBAR penalty horror story, where an individual who fully reported his income from offshore accounts will be hit with a penalty in excess of $1 million for failing to also file his FBAR reports for the offshore accounts.
This death-penalty-for-jaywalkers approach is outrageous. It’s going to drive more U.S. citizens working overseas to give up their passports. It will also make it less likely for multi-nationals to employ U.S. nationals overseas because of the tax troubles they will run into.

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We explain some things to Turbotax Tim

Thursday, August 5th, 2010 by Joe Kristan

My new post at Going Concern.

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Unanswered FAQ: why did they hire H&R Block CEO to write them?

Friday, January 22nd, 2010 by Joe Kristan

The IRS has issued a FAQ on their proposed preparer regs. This bit is interesting:

Will the testing be done by the same firm that administers the enrolled agent exam? Or will IRS be doing the testing?
The testing likely will be done by an external vendor(s). The vendor(s) is unknown at this time.

Maybe H&R Block will find a good off-season business opportunity.

Will the recommendations apply to individuals who only prepare payroll or other non-1040 series returns?
All paid signing tax return preparers will be required to register. If the preparer is not an attorney, certified public accountant, or enrolled agent, the preparer will need to satisfy the competency test and continuing education requirements. The preparer will need to pass the complex test if they prepare business returns.

Welcome to hell, all of you private payroll service operators. Congratulations, ADT.

What is the required percentage to pass the competency test?
This has not been determined. Stay tuned to the IRS.gov Tax Professionals page for information on this issue.

Well above that required of Congresscritters, Treasury Secretaries and IRS Commissioners.

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It’s Turbotax Timmy!

Monday, January 11th, 2010 by Joe Kristan

Vox Populi:
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Yes, our readers have overwhelmingly chosen the Treasury Secretary, who famously omitted thousands of dollars of taxes from his returns and blamed his tax software. He easily outpaced a strong field to become the Tax Update’s 2009 Taxpayer of the Year. While he gets no cash as a result, the prestige of the award is truly immeasurable.
William Halby, the tax lawyer who deducted over $100,000 of money he spent on prostitutes as a “medical expense,” made an impressive showing towards the end of the polling, but he couldn’t catch up with our Turbotax Treasury Secretary.

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A wire-to-wire win for Geithner?

Friday, January 8th, 2010 by Joe Kristan

Our Turbotax Treasury Secretary continues to lead the Taxpayer-of-the-year 2009 balloting.
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Don’t let his youthful hairdo blind you to a whole slate of worthy contenders. Be a good citizen, make up your own mind, and vote today! And tomorrow!

Who is the 2009 Taxpayer of the Year?
Brad Birkenfeld
Nick Cage
Helio Castroneves
Joe Francis
Tim Geithner
William Halby
Peter Hendrickson
Kent Hovind
Rev. Anthony Jinwright
  
pollcode.com free polls

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Geithner: you really like him!

Thursday, January 7th, 2010 by Joe Kristan

While the popularity of the Obama administration may be slipping, Tax Update readers love the Obama Treasury Secretary, if our Taxpayer of the Year Polling is any indication. It takes quite a man to outpoll both porn magnate Joe Francis and randy 78-year old tax lawyer William Halby, but so far Mr. Geithner is up to the challenge.

Who is the 2009 Taxpayer of the Year?
Brad Birkenfeld
Nick Cage
Helio Castroneves
Joe Francis
Tim Geithner
William Halby
Peter Hendrickson
Kent Hovind
Rev. Anthony Jinwright
  
pollcode.com free polls

But don’t be a mere follower. Check out all of our Taxpayer of the Year – 2009 candidates and vote today, and then some!

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Keep it clean, kids!

Friday, September 25th, 2009 by Joe Kristan

The White House is asking for your ideas for tax reform. I wonder how many suggestions will involve Tim Geithner and Turbotax. (Via The TaxProf).

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