Remember, Iowa 1040s are due tomorrow! They extend automatically, with no need to file an extension, to October 30 if you have at least 90% of your 2013 tax paid in. If you need to pay in some more, use Iowa 1040-V.
O. Kay Henderson reports on a New state tax break proposed for Iowa parents who adopt:
The legislature has voted to establish a new tax credit for Iowa parents who adopt a child. If the governor signs the bill into law, Iowans could claim a credit of up to $2500 per child for adoption-related expenses.
The bill would allow the credit for expenses like legal fees and the medical bills for the birth mother.
So the legislature is boldly addressing the lack of available parents wanting to adopt children by subsidizing the process. Except there is no lack of willing prospective adoptive parents. In fact, the high cost of adoptions is largely driven by the lack of U.S. babies available, forcing parents wanting to adopt to pursue expensive overseas adoptions.
Adoptive parents do a wonderful thing, taking a stranger’s child into their house as their own. But all good things don’t necessarily need their own tax break. This break pays people to do what they are already doing. If the tax law needs to encourage something, is this the most important thing to do? Should it instead encourage something people wouldn’t do otherwise? Should people choose what to do without tax law involvement? Is it really worth making the Department of Revenue an overseer of the adoption process? Nobody cares, apparently, as HF 2468 flew through the Iowa Senate 48-0, and the Iowa House, 95-1. Governor Branstad will come out against farmers before he vetoes this one.
I’m sure they are. Iowa Renewable Fuels Group Pleased With Biofuels Bill Approval. More special favors for special friends.
Kay Bell, Maryland pays $11.5 million to keep House of Cards. Some people never learn.
The IRS is, however, an insular, often tone deaf and sometimes bumbling bureaucracy which is being starved of the resources it needs to do its job. Since 2010, its Congressional appropriations have fallen 7% —-and that’s in nominal dollars, before any adjustment for inflation. During the same period, its appropriations funded workforce has shrunk by 10%, with enforcement staff down 15%, according to numbers Congress’ Government Accountability Office released last week. Meanwhile, the tax agency’s workload has increased with the explosion of identity theft tax refund fraud; a 4% growth in returns filed; and new laws to administer, including the Affordable Care Act (a.k.a. Obamacare).
That is precisely true. It’s also mostly the agency’s own fault. The agency been shown to have used its powers against political opponents of the administration. It refuses to back off of proposed regulations that would make its political role permanent. Until it swears off that approach, it can only expect short funding. The House GOP would be fools to fund an agency dedicated to the other party. Untill Commissioner Koskinen can rise above pro-administration partisanship and pull the proposed regulations, the agency will continue to be shorted.
Republican Rep. Michael Grimm was indicted Monday on federal charges of tax evasion and perjury for allegedly hiding more than $1 million in revenue from a New York City restaurant he owned where, prosecutors said, he also hired undocumented immigrants.
Grimm, a former FBI agent who has been under federal investigation regarding campaign contributions, said he is the victim of a “political witch hunt” and said he would not resign his seat.
While you can’t rule out a political explanation, the man is a politician, so the charges are at least plausible. If it is an unsupported political prosecution, that will become apparent quickly.
Even if the charges are supported, that doesn’t rule out political bias. After all, Democrat Charlie Rangel was never indicted, in spite of failing to pay his taxes for years. That’s why arguments that the Tea Party persecution was OK, because some Tea Party groups didn’t qualify for exempt status, are unconvincing. When a law is enforced only against opponents, it is a gross injustice, even if the selective enforcement catches some actual violators.
Peter Reilly, Tax Court Denies Amway Losses – Again. Peter ponders the Amway couple I discussed last week. Peter has actually attended an Amway presentation, and he explains how the program works – or doesn’t.
Tony Nitti, Tax Geek Tuesday: Tax Planning For Mergers And Acquisitions, Part II. This post discusses the tax-free kind.
TaxGrrrl, Let’s Go Places: Toyota Workers Could Save Big Tax Dollars With Move. Food for thought for those who think state taxes are irrelevant.
TaxProf, The IRS Scandal, Day 355
Tyler Cowen, Accounting for U.S. Earnings and Wealth Inequality. “So much of the current Piketty debate is simply forgetting that…science exists and has already offered a wide range of insights on these topics, as well as having rendered some of the more extreme claims unlikely.”
Richard Borean, Does a Flat Income Tax Create Income Inequality? (Tax Policy Blog). Short answer: no.
Jeremy Scott, The Most Expensive Extenders (Tax Analysts Blog). “Temporary tax policy is generally bad, but temporary policy that is designed to encourage long-term investment decisions is even worse. ”
It’s Tuesday! That makes it Robert D. Flach Buzzday!
Russ Fox, It’s Probably Not Good for Your Case When the Court Considers Sanctioning Your Attorney. When your lawyer angers the judge, he may not be helping.
News from the Profession. This Off-Kilter Accounting Firm Just Launched a New Website Begging to Be Judged (Going Concern)