Joan Rivers Made Tax History
The Lloyds of London policy would have paid $75,000 per month for sixty months had Ms. Rivers become disabled. The IRS wanted to disallow the premium of $115,492. The idea is that had the policy paid, the proceeds would have been exempt income to the corporation. You cannot deduct things that are attributable to generating tax exempt income. The corporation argued that in the event the policy had paid, it would have used the cash flow to pay Ms. Rivers. That income would have been taxable to her. The Tax Court went with the IRS.
Andrew Kay Passes – Helped Accountants Abandon Pencil Pushing
This is more reminiscing than a technical article, so please forgive me if I am a bit off on some of the details. Our first Kaypro came with two disk drives that took 5 1/4 inch “floppy” disks. The operating system was called CPM and had something called virtual memory architecture. The CPU (I’m not sure that is the right term, but that’s what we called it) had only 64k. So when it was feeling overburdened it would save things temporarily on the disks. This could be a little disturbing sometimes because things had a way of disappearing from large spreadsheets. One thing that I have retained from my Kayrpo days is a suspicion of very large spreadsheets.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.