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Most Recent Posts

Org Tries Exempt Status Multiple Choice – IRS Answers None Of The Above

Org Tries Exempt Status Multiple Choice – IRS Answers None Of The Above

It would seem that the N company could just sponsor this program with the dealers kicking in or not.  Certainly having all those foremen get together to swap war stories and best practices would be good for the brand.  Whatever was spent would be an ordinary and necessary business expense.  The new IRS Commissioner is going to greatly streamline the exempt application process, which is a good thing in some ways, because the IRS should focus on collecting taxes.  On the other hand, you should keep in mind that exempt status should add absolutely nothing to an organization’s credibility. If the organization implies otherwise, kick your bs detector into high gear.

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John Koskinen Indicates IRS Revolving Door Is A Feature Not A Bug

John Koskinen Indicates IRS Revolving Door Is A Feature Not A Bug

One comment that makes me suspect that Mr. Koskinen might be the right guy for the job is this.

I was telling somebody earlier, my experience in organizational turnarounds is that people are never the problem. It’s the structure, the leadership, the resources you’re given. This is the best workforce I’ve ever been associated with at the front end of a start-up, and it’s because there’s a mission.

It reminds me of a quote I have seen in various forms about the military, which my cursory research indicates is attributed to Napoleon – “There are no bad soldiers, only bad officers.”

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FAIR Tax Abolishes IRS – Then What?

Most of the cases that I read would still be matters of controversy under the Fair Tax. Who’s kid is this? Is that really a business expense? You flat out did not pay, so we are taking your stuff.  With fifty plus different revenue departments doing the enforcement, how likely is it to be consistent across the country?

Fifty plus revenue departments implementing a federal tax is a recipe for massive inconsistencies.  Eventually, after horror stories about the aggressive New York and California auditors and the way too easygoing ones in Alaska, it will occur to somebody, that collecting federal taxes consistently across the country probably requires federal employees.  Somebody feeling nostalgic might propose calling the resulting agency the IRS, but that probably will not happen.

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Homeowner Association IRS Ruling Highlights Schizophrenic Nature Of Associations

Homeowner Association IRS Ruling Highlights Schizophrenic Nature Of Associations

Private Letter Rulings are redacted, so I get to make up a name for the HA.  I’m going to call it Gategate, because it seems to be somewhat attached to gates.  My inference from the ruling is that the HA is more of a vacation spot than a place where people live permanently since it talks about having both campsites and mobile home sites.  There are different deals on how the electric bills are handled.

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State Fails To Force Electronic Payments On Taxpayer With Hacking Concerns

State Fails To Force Electronic Payments On Taxpayer With Hacking Concerns

Applying that “objective standard” to the facts of the present appeal, the Board found and ruled that the appellant demonstrated reasonable cause for failing to comply with the Commissioner’s electronic payment mandate. The Board found credible the appellant’s testimony that it was his consistent practice to avoid electronic payment of all bills, not just his tax obligations, and to keep his bank account information separate from his e-mail and other electronic media. The Board further found that his concerns regarding the electronic transmission of his personal financial data to be reasonable in these circumstances, given his reference to the hacking of the Pentagon’s computer systems and in light of the many well-publicized instances of large-scale thefts of financial information following computer security breaches at businesses and other institutions.

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Has Mind Control Conspiracy Captured IRS?

Has Mind Control Conspiracy Captured IRS?

Ernie founded Defender because he like many other people was a victim of M attacks. Defender operates in State G, but chose to incorporate in State D, “due to their advantageous tax strategies for business owners and entrepreneurs and also corporate veil protection for business”.  (I think D might be Delaware, but would not rule out Nevada).  Ernie had exhausted his personal investments paying expenses for equipment, supplies, consulting services, and start-up costs.  He contacted a company F (Let’s call them Funhouse) which provided a consultant for marketing, an asset protection planner, and a nonprofit specialist.  The Funhouse team took care of registration and the application for exempt status (Form 1023).  The Funhouse team also agreed to “find grant funds and compile a list of possible donors” that would be sympathetic to the cause.  The Funhouse group would also help Defender get a line of credit.

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Don’t Leave Money To Children Buried Under IRS Liens

Don’t Leave Money To Children Buried Under IRS Liens

There is a pretty strong impulse among parents to treat their children equally when it comes to inheritance. There are times when this impulse should be overridden. If one of your children is burdened by tax liens that are well beyond their prospective inheritance leaving money to that child is equivalent to leaving money to the IRS.  Worse you are likely involving the other children in the tax problems since the executor of the estate will probably not just roll over and turn the money over to the IRS.  The litigation costs will eat into the estate.

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Obamacare Upheld Against Another Challenge – Court Rules Against Sissel

Obamacare Upheld Against Another Challenge – Court Rules Against Sissel

So it was not a mandate, really.  It is a tax, which gave Mr. Sissel another opening.  Bills to raise revenue are supposed to start in the House of Representatives (Origination Clause).  Mr. Sissel’s reading of the legislative history indicated that there was a tax bill that started in the House, that had nothing to do with health care.  The Senate gutted that bill and put in the Affordable Care Act.  So really, the bill started in the Senate.

Apparently, we won’t have to sort through that legislative mishegas, because the Court ruled that even though the mandate is a tax, it is not designed to raise revenue, even though it may raise quite a bit of revenue.

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Retailer Can Only Deduct Perks When Redeemed

Retailer Can Only Deduct Perks When Redeemed

Accordingly, whether a customer paid something for the purchase of gas or nothing, petitioner’s obligation to redeem fuelperks! was subject to a condition precedent that could be satisfied only after the close of petitioner’s tax year. We find that petitioner’s liability for outstanding fuelperks! became fixed upon their redemption, not when the customer earned the fuelperks! as petitioner contends. We thus hold that the claimed deductions for the outstanding fuelperks liabilities do not satisfy section 461(h)(4) and section 1.461-1(a)(2), Income Tax Regs.

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