Nominations Due for 2014 Tax Offender of the Year

Posted on December 23, 2014 by Russ

With just about one week prior to the end of 2014, it’s time for a final reminder to submit nominations for the Tax Offender of the Year. To be considered for the Tax Offender of the Year award, the individual (or organization) must do more than cheat on his or her taxes. It has to be special; it really needs to be a Bozo-like action or actions. Here are the past lucky recipients:

2013: U.S. Department of Justice
2012: Steven Martinez
2011: United States Congress
2010: Tony and Micaela Dutson
2009: Mark Anderson
2008: Robert Beale
2007: Gene Haas
2005: Sharon Lee Caulder

Posted in Taxable Talk | Tagged | 1 Comment

Business Efiling Annual Shutdown on Friday

Posted on December 23, 2014 by Russ

The IRS will begin its annual business electronic filing shutdown on Friday, December 26th. This shutdown enables the IRS to add the new year (2014) tax products for business electronic filing. I’d expect business efiling to resume in mid to late January (2015).

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Tax Extenders Signed Into Law

Posted on December 21, 2014 by Russ

President Obama signed legislation that extended for one year the “Tax Extenders.” Tax Extenders include items such as the deduction for sales tax, mortgage/cancellation of debt tax relief, “bonus” depreciation, and many others. As the legislation didn’t have much in the way of surprises and it was signed into law in December, it’s likely tax season will begin either on time or just a week or so late.

That said, it’s not going to be a pleasant tax season for tax professionals, the IRS, or the taxpaying public. The IRS is anticipating answering just 50% of the phone calls it receives. On the bright side, since many of the answers given on the IRS help line are wrong this might have a positive component.

Additionally, this year features the first year of ObamaCare tax forms and the new property/capitalization/repair regulations.

These are such pleasant thoughts to think about on the last day of my vacation….

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Vacation

Posted on December 5, 2014 by Russ

It’s time for my annual winter vacation. I will not be posting until I return. While I’m away, enjoy the fine bloggers listed in the blogroll on the right.

I’ll be back on Tuesday, December 23rd.

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Speaking of Efficiency

Posted on December 5, 2014 by Russ

I do know how we can improve the Tax Code: Force Congresscritters to do their own taxes. I have an instructive vignette on why this is the case.

A friend of mine was hired by a major tax software company to be in customer support. He has had to learn about the Tax Code so he can answer questions. Currently, he’s taking training courses. He had this to say recently:

If you say anything about Basis, At-Risk, or Passive Limitations, I’m going to have to cut you. One of the biggest things I’m learning at [Software Company] is our tax code is ****ed and needs serious fixing.

Imagine what would happen if every Congresscritter did their own tax returns by hand. The Tax Code would unanimously be shrunk four hours later. My friend probably didn’t give the Tax Code much thought until he took his new job. I’m certain he agrees with me that using it as a “Swiss Army Knife” makes no sense.

Unfortunately, there’s no chance of meaningful reform with the current President. His goals appear to be to make things worse rather than better. It will be at least 2017 before meaningful tax reform will be on the table.

Posted in Legislation | 1 Comment

A Rare Piece of Efficiency from the IRS

Posted on December 2, 2014 by Russ

We have to take our victories in dealing with the IRS where we find them. As an Enrolled Agent, every three years I have to renew my license. I go online, check various boxes, note the continuing education I’ve taken, pay a fee, and months later I receive my Enrollment Card in the mail. Indeed, three years ago it took three tries for my card to make it to me (possibly because of my move).

On November 4th I completed my renewal application. In yesterday’s mail I received my new Enrollment Card (postmarked on November 28th). Kudos to the IRS in getting this done efficiently.

Now, if they could only make the Practitioner Priority Service hold times be under an hour….

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Mundane Tax Fraud Downs Friend of Cicero Town President

Posted on December 1, 2014 by Russ

George Hunter will likely be going to ClubFed. He pleaded guilty today to two counts of tax evasion. Mr. Hunter’s company received $1.8 million in two years from Cicero…without a contract. Mr. Hunter is friends with Larry Dominick, the Ton President of Cicero. Cicero is a suburb of Chicago. The Chicago Sun-Times article notes that Mr. Hunter has refused to cooperate with federal prosecutors.

As for the tax evasion, it’s pretty mundane. Mr. Hunter paid his employees in cash and told his employees not to report their income to the IRS. He didn’t, and not paying payroll taxes is a major issue with the IRS. He also failed to file a 2008 tax return when he allegedly made $655,000. Mr. Hunter originally said the charges were brought because he refused to cooperate with authorities. No matter, the charges apparently were true. He’ll be sentenced in March.

Corruption in Chicago? Who would’ve thunk it!

Posted in Illinois | 2 Comments

A Ship Over Troubled Waters Sinks Leeds’ Cellino For Now

Posted on December 1, 2014 by Russ

From the Sport (not Sports) page of the Telegraph and the BBC we find that Leeds beat league-leading Derby two to nil in football (or soccer for us colonials). Derby manager Steve McClaren was quoted by the BBC: “It’s just one of them days, a bad day at the office. We were below our best and when you’re not at your best, you can be beaten.” However, the real news was what happened away from the pitch.

Massimo Cellino owns Leeds United. Unfortunately, he’s also been found guilty of evading import taxes on a boat in Italy. The Football League ordered Mr. Cellino to resign because he was convicted of “…an offence involving a ‘Dishonest Act’….” Mr. Cellino vows an appeal.

In any case, his ouster will likely be very short-term. He can resume his ownership on March 18th; at that point his conviction will be “deemed spent.”

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As God as my Witness, I Thought Turkeys Could Fly

Posted on November 26, 2014 by Russ

Have a Happy Thanksgiving everyone:

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One Ringy Dingy, Two Ringy Dingies…

Posted on November 25, 2014 by Russ

…2400 Ringy Dingies. Yes, I was on hold for two hours today on the IRS Practitioner Priority Service before my call was picked up. It’s November–not a high time for calling the IRS–but add the combination of the IRS Centralized Authorization File Unit taking well over the promised five days to input a faxed Power of Attorney or Tax Information Authorization, lots of notices being issued by the IRS that require a response, and ridiculous hold times are the norm.

Oh, yes, I was told the expected wait time was 30 to 60 minutes. Sigh….

Posted in Uncategorized | 2 Comments