Posts Tagged ‘Tracy Gordon’

Tax roundup, 8/8/2013: Des Moines, Number 1! And gee, a new tax form.

Thursday, August 8th, 2013 by Joe Kristan
Flickr image courtesy DMPL Special Collections under Creative Commons license

Flickr image courtesy DMPL Special Collections under Creative Commons license

We’re number one! Forbes ranks Des Moines best for business (Des Moines Register):

Forbes said this year it rated the 200 largest metro areas on a dozen factors related to jobs, business and living costs, income growth, quality of life and education of the labor force. Des Moines was the only metro to rank in the top quartile for at least nine of the 12 metrics.

The Forbes piece is here.

 

Oh, Joy.  IRS Releases Draft Form 8960 For Computing New 3.8% Tax On Net Investment Income (Tony Nitti)  Also, Paul Neiffer, IRS Releases Draft Form For New Net Investment Income Tax:

In total, there are 33 lines that you must fill out in order to calculate the tax. If you normally prepare your own tax return and your gross income exceeds $250,000, we would highly recommend having a qualified tax advisor review or prepare this form.

It is a hideously complex tax.  Thanks, Obamacare!  More on it here.

 

Megan McArdle, How the Lone Star State Legalized Highway Robbery.  Civil asset forfeiture is a whimsical and corrupt means of funding government operations.  It should be outlawed, or limited to property owned by a convicted criminal.

 

Robert D. Flach has his Friday Buzz going a day early this week, and he’s on fire:

Regardless of whether or not the EITC actually does any good – it does not belong in the Tax Code!

I agree.  And I don’t think the good it does outweighs the harm, especially when up to 25% of it is issued improperly.

Peter Reilly, IRS To Collect Estate Tax From Beneficiary After More Than A Decade.   “The idea is that if you get assets directly as a result of someone’s death, you may be responsible for some of the estate tax.”

Jason Dinesen,  Life After DOMA: Living in a Non-Recognition State, Part 2  ”How will couples in same-sex marriages file their state taxes if they live in a state that doesn’t recognize their marriage?”

Kay Bell, The tax rules on renting your vacation home

Me, Can suing be your “trade or business?”

 

Among other things. IRS failing in efforts to curb ID theft tax fraud   (CPA Practice Advisor)

 

Joseph Henchman, California’s (Not Unusual) Shrinking Sales Tax (Tax Policy Blog):

Why is this happening? Sales taxes were first created in the 1930s as an emergency measure, and they applied only to the purchase of goods because that’s what our economy was back then. Today, the vast majority of our economy is service-based: housing, health care, legal services, accounting services, haircuts, child care, and so forth. Sales taxes haven’t kept up, so their base declines as a share of the economy.

Cara Griffith, Fighting the Fight Against a Local Use Tax in Illinois (Tax Analys Blog):

The tax took effect on April 1 and was expected to raise about $13.8 million in revenue. The tax was designed to encourage county residents to purchase from local businesses. Many businesses in Cook County purchase goods outside the county to avoid the county’s already high sales tax rate.

But there are two problems with the tax: it treats Cook County-based businesses and individuals differently than those outside the county and the county doesn’t have the legal authority to impose the tax. Not surprisingly, a lawsuit quickly ensued.

Maybe they can talk to Des Moines about what happens when you impose an illegal tax.

 

Tracy Gordon, A New Look at State and Local Pension Liabilities (TaxVox)

Speaking of which,  We Are All Going to Pension Hell (Megan McArdle)

FBAR reports may be the least of his problems.  Edward Snowden Is Going to Need Some Expert Expat Tax Advice (Going Concern).

 

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Tax Roundup, 8/1/2013: Sales tax holiday! And bidding for tax trouble.

Thursday, August 1st, 2013 by Joe Kristan

 

Flickr image courtisey gaudiramane under Creative Commons license

Flickr image courtesy gaudiramane under Creative Commons license

Iowa sales tax holiday!  The silly Iowa sales tax holiday for clothes is tomorrow and Saturday.  From the Iowa Department of Revenue website:

  • Exemption period: from 12:01 a.m., August 2, 2013, through midnight, August 3, 2013.
  • No sales tax, including local option sales tax, will be collected on sales of an article of clothing or footwear having a selling price less than $100.00.
  • The exemption does not apply in any way to the price of an item selling for $100.00 or more
  • The exemption applies to each article priced under $100.00 regardless of how many items are sold on the same invoice to a customer

While it is touted as a “back to school” holiday, there is no classroom requirement.

Sales tax holidays are silly gimmicks and bad tax policy.  Yet if you are a careful shopper, you can save on a new outfit in Iowa and take it to Louisiana for their September 6-8 sales tax holiday on firearms.

Links:

Cara Griffith, Back-to-School! Time for a Holiday (Tax Analysts blog)

Kay Bell, 12 states have sales tax holidays this weekend

Details on Iowa’s sales tax holiday

Map of U.S sales tax holidays.

 

Going, going, gone.  An Iowa auctioneer was sentenced to 48 months in prison this week after pleading guildy to tax fraud and social security fraud, reports WOWT.com:

Fifty-five-year-old Robert Duncan was sentenced by U.S. District court judge John Jarvey after entering a guilty plea. That plea came back in March.

Duncan admitted to defrauding the SSA, filing a false income tax return and making a false statement to a financial institution.

The former owner and auctioneer for Bob Duncan and Associates, was also ordered to pay restitution to the Social Security Administration in the amount of $218,755.10, and to the Internal Revenue Service in the amount of $42,254.00.

Not good.

 

The IRS did nothing wrong, and besides they did it to lefties too!  That has been one line of argument by the “nothing to see here” folks who pooh-pooh the IRS harassment of Tea Party groups.   Now NPR, not known as a friend of the Tea Party, has run the numbers, and it looks like… the IRS harassed conservative outfits, and pretty much left the left side alone:

 7-30-13-irs-targeting-statistics-of-files-produced-by-irs-through-july-29-2-

Nothing to see here, move along…  For example, Ways and Means–still distracting with false scandals (Linda Beale).

Other coverage:

TaxProf, The IRS Scandal, Day 84.

Sioux City Journal, Iowa-based group at center of new IRS accusations

 

Tax Justice Blog, What the President Really Said about Business Tax Reform:

What the President just proposed is not much different from his previous proposals.

That’s the problem.

William McBride, Obama’s Grand Bargain a Roundabout Way to Raise Corporate Taxes (Tax Policy Blog)

William Perez, Some Senators Release Their Blank Slate Tax Reform Ideas

Jim Maule,  Polishing Subchapter K: Part I.  Prof. Maule has some ideas for partnership taxation.

 

Tax Trials, Tax Court Reasserts Position on Conservation Easements

Missouri Tax Guy, Business Structures, Choosing your Entity

                                                              

Peter Reilly, North Carolina Declares Cash Register Zappers Contraband .  The government doesn’t like skimming software.

Robert D. Flach has some thoughts on THE IRS AND NJDOT WEBSITES

 

Tony Nitti, MLB Trade Deadline Winners And Losers: The Tax Edition.  Through no fault of his own, Bud Norris goes from income tax-free Texas to high-tax Maryland.  On the positive side, he won’t be playing for the Astros any more.

Tracy Gordon, Detroit’s Pension Blues, and America’s (TaxVox)  Defined benefit pensions for public employees should be outlawed, and their assets converted to defined contribution plans.

The Critical Question: Were ‘Real Housewives’ Stars Targeted For Prosecution Because Of Their Celebrity?  (TaxGrrrl).  If you are going to cheat on your taxes, it may be wise to not put your life on television.

 

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Tax Roundup, 2/6/2013: 4.5% Iowa tax? Flat chance. And hidden dangers of an IRS exam.

Wednesday, February 6th, 2013 by Joe Kristan

20130206-1Shock!  David Osterberg doesn’t like the 4.5% flat Iowa Income tax proposal!  State Tax Notes tracked down former Senate Candidate and Cornell College Econ Prof* David Osterberg for his views on the proposal to create a flat 4.5% income tax in Iowa alongside the current income tax.  Not surprisingly, he doesn’t like it ($link):

     The founder and executive director of the Iowa Policy Project said a Republican-sponsored House bill to create a flat personal income tax option would shift more of the tax burden to low-income residents.

     But David Osterberg said he is not too concerned because he doesn’t think the proposal has a shot at passing the Senate, where Democrats hold a majority…The proposal is “part of this ideology that says we somehow have to take  care of the top 1 percent and things will be good,” Osterberg said. “I don’t think low-income people believe that — we sure don’t.”

State Tax Notes also tracked down Tax Foundation Economist Elizabeth Malm:

     “Iowa’s current income tax system has nine brackets, with rates ranging from 0.36 percent of income to 8.98 percent of income,” Malm said in an e-mail to Tax Analysts. “In 2012, this made Iowa the fifth highest top income tax rate in the country, among those states that levy PITs.”

     Without additional information, Malm declined to say whether the plan is regressive. She did say, however, that the proposal would fail to simplify the tax code because it keeps the current system intact.

     “I’m guessing the rationale behind allowing taxpayers to choose between the two systems is to ease concerns that the flat 4.5 rate would hit low-income individuals harder,” Malm said.

Wrong guess.  The rationale is almost surely to avoid provoking the powerful lobby group Iowans for Tax Relief, which holds sacred the current Iowa individual deduction for federal taxes paid.  Proposing the flat tax as an alternative, rather than a replacement, finesses that problem — but at the cost of adding more complexity.  In this form, the flat tax is what I call an “Alternative Maximum Tax.”

*Disclosure: I once borrowed his shotgun at Cornell.  It had dust bunnies in the tubes.

 

David Brunori, Who Pays? Who Cares? You Should (Tax.com):

No matter your views on government, there is no justification for asking the poor to pay more than the rich. I do not favor dramatically increasing the tax burdens on the wealthy, particularly income tax burdens. But there are a lot of policies that can be enacted that could even the playing field. Broader base consumption taxes, less reliance on excise taxes, and larger income exemptions for low wage taxpayers would go a long way.

None of these are incompatible with lower top tax rates.

Tracy Gordon,  The Downside of States as Laboratories for Tax Reform (TaxVox)

 

Needed, but impossible.  Tax Notes has a sad-but-true headline that brilliantly summarizes the state of our national tax policy: Urban Institute Panelists Agree Tax Reform Necessary but Unlikely. ($link)

Linda Beale, More on PTINs for previously unregulated tax return preparers:

We have seen considerable evidence of tax return preparers who do not understand the tax laws or who intentionally misapply them (in the home office deduction, etc.).  It is imperative that those who assist others in preparing tax returns demonstrate minimal competency in the tax law as demonstrated by the qualifying exam.

The “qualifying exam” is open book — really more of a literacy test.  The IRS can make preparers show they can read.  They can’t make them competent.  When you consider the Big 4 tax shelter scandals, and the hopeless complexity of the tax law, it’s funny to say that the problem is really “people who do not understand the tax laws.”

 

Peter Reilly, Future Baseball Commissioner Tackles Tax Laws As Complex As Infield Fly Rule

Tough tax return choice for 2012: Pay more now to save later?  My new post at IowaBiz.com, the Des Moines Business Record Blog for Entrepreneurs, discussing whether maximizing 2012 deductions is really a good idea.

Jason Dinesen, Taxpayer Identity Theft — Part 12 .  More Kafkaesque obstacles to resolving an identity theft for his client.

William Perez, IRS Provides Further Disaster Relief for Hurricane Sandy

Kay Bell, Tax Carnival #112: Super Bowl of Taxes

Jim Maule, Tax Ignorance As Persistent as Death and Taxes

Missouri Tax Guy:  Missouri does not mail  Form 1099-G.  You have to get it online.  One more little blow to tax compliance for small taxpayers.

Trish McIntire, Low Cost Tax Preparation Options

TaxGrrrl,  U.S. Postal Service To Eliminate Saturday Delivery: Will It Save Tax Dollars?  Next they’ll shut down the Pony Express.

Patrick Temple-West, Waiting on the phone for the IRS, and more (Tax Break)

Ellen Kant, William McBride, Super Bowl Tax Bill (Tax Policy Blog)

Russ Fox,  Will the Third Time be the Charm for Appeals?  A case where the “independent” IRS appeals function failed twice.

Howard Gleckman, Can the Income Tax Fund the Government We Want?  (TaxVox).  I can’t speak for “we,” but it could easily cover all of the government I want.

 

The Critical Question: Et Tu, Sarkozy? (David Goulder, Tax.com)

If they can spell their address, tax cheating should be easy for them: Massapequa Restaurant Owners Sentenced for Tax Fraud (Massapequa Patch).

Isn’t that conspiracy?  Tax fraud: We have a plan, authorities say (Myfoxtampabay.com)

Screwed either way.  Taxpayer Sues IRS, Claims Agent Coerced Him Into Having Sex to Avoid Adverse Audit  (TaxProf).

 

But not hotirsagent.com?  I guess there really are stupid easy ways to earn internet money.  A Kansan found one, but then got in trouble by not paying his taxes.  KFDI.com reports:

Dallen Harris, 39, pleaded guilty to one count of tax evasion. He reported a taxable income of a little more than $164,000 in 2010, when it was actually more than $1 million. 

Harris’ income came from Internet domain names, according to court ecords from a related civil forfeiture case in federal court. The government is seeking to forfeit Harris’ houses, cars and bank accounts in that case. The domain names included celebritysextape.tv, adultkingdom.net, Porntesters.com, hardcorefilms.tv, celebritynakedpic.com and sextape.com. 

No, I won’t link to any of those.  It doesn’t sound like they need any help generating traffic anyway.

 

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A center-left case against state corporate income taxes

Tuesday, May 18th, 2010 by Joe Kristan

From Tracy Gordon at the Tax Policy Blog: Take the State Corporate Income Tax

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