Appeals Court to Snipes: It’s Ocala

Yesterday the 11th Circuit Court of Appeals dealt the final blow to Wesley Snipes’ wish of a trial in the Big Apple (or anywhere but Ocala, Florida). They dismissed Snipes’ motion to move the trial from Ocala and denied his motion to stay the start of the trial.

So Snipes’ trial will definitely begin Monday in Ocala. It promises to inject some humor into the tax season for us bloggers but likely little humor for Snipes.

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What To Do In Ocala

Poor Wesley Snipes. He’ll have to spend several weeks in beautiful bucolic Ocala, Florida. Judge William Terrell Hodges denied Snipes’ motions for a stay in the trial pending the ruling of the 11th Circuit Court of Appeals on Snipes’ appeals of Hodges’ earlier rulings. Given that the 11th Circuit hasn’t issued an emergency stay of Snipes’ trial (which they could have) it’s all systems are go and Snipes’ trial will almost certainly begin on Monday in Ocala.

So for Mr. Snipes’ benefit, here are some of the attractions he has to look forward to while being on trial in Ocala:

– Ocala is the “Horse Capital of the World” according to their chamber of commerce. Visit a horse farm or the Ocala Carriage Museum.

– Go and see Always … Patsy Cline at the Ocala Civic Theater (opens January 31st).

– Visit the Ocala National Forest.

– Play a round of golf at any of the 22 nearby golf courses and country clubs.

In any case, Wesley Snipes may wish to enjoy these diversions now as he may be spending a significant amount of time at ClubFed (where there just aren’t that many diversions) in the near future.

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Proposition 92: Community College Funding

Proposition 92 is one of seven propositions on the February ballot. (I just received a supplemental voters guide from the Secretary of State and my sample ballot.) Proposition 92 limits fee hikes at community colleges (what used to be called “Junior Colleges”). It also changes how California’s education dollars are allocated, increasing the amount that goes toward community colleges.

Surprise, surprise: Community college leaders are for the proposition. Lining up against the proposition are the California Chamber of Commerce, the California Taxpayers’ Association, and some K-12 teachers. They claim that Proposition 92 gives a “blank check” to fund community colleges, lack accountability, and California is facing a budget deficit.

Make up your own mind, and remember to vote on February 5th.

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What to Look for in a Tax Preparer

The IRS just released a fact sheet on what to look for in a tax preparer. Here’s what they say:

  • Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.
  • Avoid preparers who base their fee on a percentage of the amount of the refund.
  • Use a reputable tax professional who signs your tax return and provides you with a copy for your records.
  • Consider whether the individual or firm will be around to answer questions about the preparation of your tax return months, or even years, after the return has been filed.
  • Review your return before you sign it and ask questions on entries you don’t understand.
  • No matter who prepares your tax return, you, the taxpayer, are ultimately responsible for all of the information on your tax return. Therefore, never sign a blank tax form.
  • Find out the person’s credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
  • Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.
  • Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?

Joe Kristan at Roth Tax Updates has added on to this list with some hints of his own. My favorite is, “Find out if the preparer is affiliated with a professional organization that provides its members with lists of countries without extradition and holds them to a code of silence.” It’s a quite humorous list, well worth reading if you have the time.

If you are seriously deciding about what to look for in a tax preparer, Kerry Kerstetter has a great post well worth reading.

If you are looking for a preparer, he or she will appreciate it if you start your search now rather than waiting until mid-March. Most preparers have a lack of free time as the April 15th deadline approaches.

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All Your Thermostats Will Soon Be Ours!

The last time I checked I lived in a (relatively) free society. But California regulators are about to make this part of the old Soviet Union.

The California Energy Commission has just issued its proposed 2008 regulations for Building Energy Efficiency Standards. While much of this 236 page book of regulations deal with items that are prosaic (e.g. joists) there’s a whopper that the Commission has put in.

For new residential construction, “tThermostats. All hHeating systems shall be equipped with thermostats that meet the Programmable Communicating Thermostat (PCT) requirements of Section 112(c).” (Section 151, 9; page 207) What does this mean?

Well, for that you have to go to Section 112(c) on page 63 of the report:

(c) Thermostats. All unitary heating and/or cooling systems including heat pumps that are not controlled by a central energy management control system (EMCS) shall have a Programmable Communicating Thermostat (PCT) that is certified by the manufacturer to the Energy Commission to meet the requirements of Subsections 112(c)(1) and 112(c)(2) below:
1. Setback Capabilities. All PCTs shall have a clock mechanism that allows the building occupant to program the temperature set points for at least four periods within 24 hours. Thermostats for heat pumps shall meet the requirements of Section 112(b).
2. Communicating Capabilities. All PCTs shall be distributed with a non-removable Radio Data System (RDS) communications device that is compatible with the default statewide DR communications system, which can be used by utilities to send price and emergency signals. PCTs shall be capable of receiving and responding to the signals indicating price and emergency events as follows.

So what will happen? You have to go to page 64 to find out:

A. Price Events. The PCT shall be shipped with default price-event offsets of +4°F for cooling and -4°F for heating enabled; however, customers shall be able to change the offsets and thermostat settings at any time during price events. Upon receiving a price-event signal, the PCT shall adjust the thermostat setpoint by the number of degrees indicated in the offset for the duration specified in the signal of the price event. The PCT shall also be equipped with the capability to allow customers to define setpoints for heating and cooling in response to price signals as an alternative to temperature-offsetting response, as described in Reference Joint Appendix JA5.
B. Emergency Events. Upon receiving an emergency signal, the PCT shall respond to commands contained in the emergency signal, including changing the setpoint by any number of degrees or to a specific temperature setpoint. The PCT shall not allow customer changes to thermostat settings during emergency events.

So the bureaucrats will soon control thermostats on all new construction in California.

Now, I realize that California does have current issues with electricity, but central control and planning don’t work. Many customers of various power companies voluntarily join a program allowing their air conditioners to be cycled during summer months. That’s fine. And increasing prices during an emergency is fine—that’s letting the free market work. But this proposal is an abomination.

Of course, most people live in existing construction and aren’t impacted by these regulations. But if the bureaucrats have their ways it will only be a matter of time before existing construction will have to comply. I expect that once these regulations are implemented, they’ll be required as part of the permitting process when you do major work on your home.

If you’re a Californian and think these new regulations make it look like we’ve just moved to the Soviet Union it’s time to let your legislators and the Commission know.

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Domestic Partners Win Property Tax Benefit

The California Supreme Court ruled last week that registered domestic partners have the same property tax benefits as heterosexual spouses. This means that if registered domestic partners own a home, and one inherits the home from the other, they are entitled to the same protection from a property tax reassessment as a married couple.

Several county assessors fought a decision made by a Sacramento judge in 2005, and appealed first to the appeals court and then to the State Supreme Court. They were unsuccessful.

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It’s Only A Technicality….

I haven’t posted on the new taxes that citizens in Maryland face. The overwhelmingly Democratic General Assembly passed a huge tax increase last November. One portion of the increase is an increase in the state’s sales tax.

But a problem has surfaced: Maryland Republicans have filed a lawsuit to stop the tax increase. According to this report by WJZ, the Maryland Senate took five days off during the special session (called to have the tax increases passed) without permission of the General Assembly. Apparently the Maryland state constitution prohibits such a vacation.

Senator Allan Kittleman told WJZ, “This is actually an attempt to make sure that we have transparent government, that we have integrity in our government and that the rule of law is kept.” But Maryland Democrats say the whole thing is a bunch of hot air.

Meanwhile, if you live in Maryland you’re paying higher taxes. It’s possible you won’t be paying as much after a judge rules (likely in the next two weeks) on the lawsuit. Of course, it’s only a technicality….

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More Corruption in New Jersey? Say It Ain’t So

Like the raindrops that have been falling relentlessly here in Orange County, so also have been the charges of corruption in New Jersey. The Mayor of Guttenberg, David Delle Donna, and his wife, Anna, have been indicted on charges of tax fraud.

The couple were already facing charges of mail fraud and extortion. They are alleged to have accepted bribes to pay for Mrs. Delle Donna’s cosmetic surgery. Federal authorities also allege that they accepted bribes in the form of gambling trips to Atlantic City, liquor, and a dog…a dog that cost more than $1,000.

Mr. Delle Donna won’t be stepping down voluntarily from his mayoral position. The couple’s attorney says that, “They look forward to their vindication in the court of law.” If they’re not vindicated they may be looking at an extensive stay at ClubFed; if convicted on all counts they face more than 20 years and significant fines.

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Snipes Appeals Judge’s Rulings

Wesley Snipes attorneys appealed Judge William Hodge’s rulings that the trial will take place in Ocala, Florida and that it would start on January 14th. The appeal was filed at the 11th Circuit Court of Appeals in Atlanta, according to Ocala.com. Robert Barnes, Snipes’ attorney, also asked the Appeals Court to postpone the start of the trial until after the Appeals Court rules on their motions.

If the Appeals Court doesn’t issue a stay in the proceedings it would start on schedule in just over a week, and would likely make Snipes’ motions moot. We should know the results of these rulings in the next few days.

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Illegal Income Is Taxable

I’ve been asked about illegal income several times. Yes, you must report your illegal income on your tax return. If you don’t, you’re guilty of tax evasion.

Todd Olynciw seemed to be a model employee of the Hartford, the big insurance and financial services concern. He earned a company award after helping the company reestablish its New York office after the September 11th terrorist attacks. Mr. Olynciw was responsible for ordering and installing furniture and flooring for the Hartford.

Mr. Olynciw had a sideline business: he and other conspirators defrauded the Hartford. Given that the fraud amounted to $876,437, we’re talking a lot of furniture. Court documents show that some of the purloined furniture was sent to his brother-in-law for free. Some contracts were awarded to firms who performed work at Mr. Olynciw’s home according to this story in the Hartford Courant. And I should mention that Mr. Olynciw also received $395,720 in kickbacks.

Mr. Olynciw pleaded guilty to one charge each of mail fraud and tax evasion; he neglected to report the kickbacks on his tax return. He’s looking at up to 25 years at ClubFed plus restitution to the Hartford and the IRS.

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