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Most Recent Posts

IRS Busts In Las Vegas Tip Case

IRS Busts In Las Vegas Tip Case

Goddamn college kids. The case was about the adequacy of his records though.  If the Tax Court finds them adequate and credible, he wins.  The IRS had a number of objections to Mr. Sabolic’s fairly meticulous record keeping.  The Service kept hitting and kept busting.  Recording the daily amounts in whole dollars and using a conservative estimate for the share of his tips that went to barbacks did not cancel out his meticulous work.  Discrepancies with the MGM reporting were accounted for by timing and glitches in the MGM system.

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Pensacola Shows Little Interest In Kent Hovind Trial

Pensacola Shows Little Interest In Kent Hovind Trial

Rudy is very puzzled that in a city with as vibrant a church community as Pensacola – a church community that  Kent Hovind helped make prominent with his world wide video distribution, speaking tours and Dinosaur Advertureland – there is no support for Kent Hovind.  Rudy discusses the phenomenon in this youtube titled “The local churches think Kent Hovind is a tax cheat.”

Jonathan Schwartz was puzzled by the same question and came up with an answer by getting Steven Gray to turn the camera on himself.  Steven Gray, who is 25, grew up in Pensacola.  He was home schooled till the age of 17.  The home schooling was supplemented by science and math instruction from Kent Hovind.  He describes a warm and humorous teacher who was quite inspiring.  Steven is active in his church and still holds a young earth creation view, but along with most of the rest of the evangelical community in Pensacola is not warming up to Kent Hovind’s anti-government viewpoint.  Apparently the evangelical community in Pensacola might sympathize with Hovind’s plight and hope that he is released, but they also find him to be an embarrassment.

A similar perspective might also account for Kent’s fairly tepid support from the broader “creation science” community”.

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1099-C From Out Of The Blue? Don’t Ignore It! Fight It!

1099-C From Out Of The Blue? Don’t Ignore It! Fight It!

The case was complicated by a bankruptcy filing, but they really did not get into that.  At any rate, the Tax Court reviewed the eight triggers than can require an entity to send out a 1099-C. Since you are probably not running a bank or something like that, I’m not going to run through them with you.  One of the more obvious ones is that the statute of limitations on collection action has expired. Duh!  So there should have been a 1099-C issued in 2001.  That was when there was an event discharging the debt.  All that happened in 2007 was that somebody decided to free up disk space or something which triggered the 1099-C.

Since there was no discharge event in 2007, Ms. Bacon wins. Huzzah!

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IRS Grossly Unqualified To Make Determinations About Software Related Exempt Applications

IRS Grossly Unqualified To Make Determinations About Software Related Exempt Applications

I think that some organizations might want to think about whether the game is worth the candle when it comes to applying to the IRS for exempt status.  If you are not expecting to get much in the way of charitable contributions and you don’t intend to accumulate a large reserve, there is not a lot gained from a federal tax perspective.  In certain circles 501 status will give you an entirely undeserved dose of credibility and certain grant making organizations will only make grants to organization with exempt status.  There are also a variety of state and local benefits that can hinge on exempt status.  Still many organizations, particularly the 501(c)(4)s could probably be what they want to be without IRS recognition.

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