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Most Recent Posts

Judicial Watch Loses Orthodontist Suit Against Delay Of Obamacare Employer Mandate

Judicial Watch Loses Orthodontist Suit Against Delay Of Obamacare Employer Mandate

A dissenting judge had pointed out that Doctor Kawa was out the interest he could have earned on the five grand over two years.  I guess that might have amounted to something back when money still earned interest.  That had not been mentioned in the claim.  And really, you shouldn’t be in court over something that could be settled with maybe a steak dinner.

And even if he had been harmed, the Court did not see how the order he was requesting to prevent the administration from kicking the can down the road would make him any better off.

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AICPA Wasted Member Dues On IRS Lawsuit

Then my villainous cynical mind kicks in.  Suppose large local and regional firms started pledging that any non-CPAs who touched your return would be people who had at least passed the IRS exam and challenged you to ask the larger firms if they could match that.  A very large portion of the tax work done by the largest firms is actually done in India.  Clients who take the time to read the voluminous engagement letters are aware of this, but still it might prove something of an embarrassment.  If the firms went ahead and had their Indian employees take the exam, I’m thinking the Tea Party would have a blast with the long list of Indian names on the IRS preparer rolls.

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What If Lois Lerner Was Right About The Tea Party?

One GD thing after another and now we are on Day 542 of the IRS Scandal, by TaxProf count, with no end in sight. Here is the question that is troubling me right now thanks to the e-mails I have been getting from Jenny Beth Martin.  If there is a pretty compelling case that Tea Party Patriots Inc was intended from day 1 to be a political organization, rather than a social welfare organization, would that make any difference in how we view Lois Lerner?

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Government Coming Down Harder On Kent Hovind

Government Coming Down Harder On Kent Hovind

I should preface this by saying that Kent Hovind’s troubles are pretty much of his own making.  YEC supporters have encouraged Kent to stop fighting the IRS so he can focus his energy on “creation science”.  Eric Hovind is following in his dad’s footsteps in arguing against evolution, but is not a chip off the old block when it comes to tax compliance.  The website of his group Creation Today gives links to its Form 990 and even mentions its CPA firm.

With that said I really question the judgement of the government in going after Kent for making one more stupid filing.  Frankly, if I was on the jury, they might have a hard time getting a conviction.  There is stupid and stubborn and there is criminal.  Plenty of tax related crime to fight elsewhere.  If Hovind is convicted, he will seem like a martyr.  If he is acquitted, it will look like a victory for tax defiers.

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There Is An Accountant Art Expert – Who Knew?

Although estate taxes play a major role in art planning, there are numerous other tax issues.  If you want to diversify your collection or get the yen to move from say Impressionism to Abstract, you might have significant taxable gains.  Although I’ve always believed that 1031 might have application in the art world, Gary confirmed that it is a viable technique.  He recommends that you involve an institutional exchange facilitator which might also be doing real estate and equipment since they will have the facility with the proper tax execution.  I couldn’t pry a name out of him.

Then there are state tax issues. The New York Times recently ran an article about a sales and use tax dodge that some collectors were using.  Works that they bought were shipped on loan to a museum in a state that would not charge sales or use tax.  After a few months, the work could be moved to the collectors home and he beats the use tax because the original use was the museum loan.  Gary’s firm put out an alert, that nifty as this idea might be it does not work if you bring the artwork into New York, New Jersey, or Connecticut.

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True The Vote Suit Dismissed By Bush Nominated Judge – Jenny Beth Martin Not Happy

True The Vote Suit Dismissed By Bush Nominated Judge – Jenny Beth Martin Not Happy

Here is where it gets lawyerly.  TTV wanted to invoke the “volunatry cessation exception to the mootness doctrine”.  The idea is that even though the IRS has backed off by granting the exemption, it still might get back to its old tricks, after the judge is no longer looking over its shoulder.  TTV expressed concern that the IRS might select them for audit in the future based on inappropriate criteria.  The Court found that to be too speculative.

TTV was also seeking money damages from several IRS employees involved in the application process.  Citing other cases the Court noted that it is unnecessary to have a court created remedy since Congress has created a specific remedy for challenges to rulings on tax exemption.  That is TTV could have gone to Tax Court to complain about its ruling being delayed or if it had been denied.

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IRS Collection Action Can Be Delayed For A Long Time

IRS Collection Action Can Be Delayed For A Long Time

If you don’t pay your tax, IRS collections can, ultimately, take your stuff (levy) or tell other people who owe you money to pay them instead of you – or else.  As you can see from this case, it is possible to keep that wolf from the door for a really long time.  Mr. Hauptman presented offers in compromise in August 1997 and March 1998, which were both rejected as inadequate.  A third offer was made in July 2005 which was deemed to be made “solely to delay collection activity”.  A fourth offer was submitted on February 10, 2010.  It was for $500,000.

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Taxpayer Barred From Communicating With CPA Still Hit With Late File Penalty

Taxpayer Barred From Communicating With CPA Still Hit With Late File Penalty

The late file penalty would not have been as big a deal, if Mr. Hoeffner had not had such a large balance due. Of course it could be that the money he made in 2008 was sucked up by non-deductible legal expenses, which is why not enough went in with his extension in April of 2009.  I still think the late file was really piling it on.

So I guess the moral of the story is that is great to be true to your school, but your CPA not so much.

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UnFair: Exposing The IRS – Does Not Make Strong Case Or Decent Documentary

UnFair: Exposing The IRS – Does Not Make Strong Case Or Decent Documentary

Jonathan Schwartz did not think that UnFair cut it as a documentary. He did not even think that it was very effective propaganda.  It was more of a rally the troops type of piece that would only work on those who were already convinced of the viewpoints expressed.  After discussing it for a while, we sat at his kitchen table and he fed me some one-liners, several of which I thought really nailed it.

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