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Most Recent Posts

IRS Wants Electronic Filing But Is Harsher On Penalties Than With Paper Filers

IRS Wants Electronic Filing But Is Harsher On Penalties Than With Paper Filers

There is already a similar case headed to the Fifth Circuit for appeal.  Christopher Haynes had used a paid preparer to file his 2010 joint return and had no reason to know that the return had been rejected.  The crux of that decision is that you cannot delegate responsibility for meeting the due date of a return.  If that is the logic the IRS is going to follow, then maybe we should all go back to filing paper returns.  That will show them .  The American College of Tax Counsel has filed an amicus brief on the Haynes case.

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Religious Organizations Rally To Preserve Favorable Tax Treatment Of Clergy Housing Allowances

The challenge to tax-free housing allowances for “ministers of the gospel” (Gaylor v Mnuchin) has entered what I like to call the “good buddy” stage. Amicus briefs are being filed.  The housing allowance under Code Section 107(2) has a lot of amici (That is the plural of amicus, which means friend in Latin.  You and I both know that, but you have to think of the other readers.)  The amici are people that might not have a dog in the fight but want to help the judges make a good decision.  The Seventh Circuit, which now has the constitutionally of Code Section 1o7(2) before it – again – has quite a few friends including seventeen members of Congress.

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‘God And The IRS’ Stakes Out Controversial Positions On Religion And Taxes

‘God And The IRS’ Stakes Out Controversial Positions On Religion And Taxes

Perhaps it is a bit of a surprise that the Brigham Young University graduate and blogger on Mormon issues thinks there is a problem with those earnest young men and women with black nameplates not being taxed on their support when it is funded through tax-deductible deductions.  What does merit accommodation in his view is some interest deduction equivalent for Sharia-compliant financial instruments.  Well there you have it tax the mega pastors of the mega churches and those very polite young men and women, to give a break to the Muslims.

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Been Putting Off Disclosing Foreign Assets To The IRS? Right Time May Be Now

Been Putting Off Disclosing Foreign Assets To The IRS? Right Time May Be Now

Another option is “quiet disclosure”, which is simply amending returns without making a big fuss about it.  Here is an article on what a bad idea that is for whatever that is worth.  And then there is just not doing anything.  You are betting on continued deterioration of the IRS enforcement capability and feeling lucky. I don’t recommend it, but of course, if you had been listening to somebody like me to begin with you wouldn’t be in the situation now.

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God And The IRS – And Kent Hovind!

God And The IRS – And Kent Hovind!

I didn’t think anybody would ever be able to top “Call me Ishmael” as an opening line of a book, although “When Mr. Bilbo Baggins announced that he would shortly be celebrating his eleventy-first birthday” comes close.  Professor Samuel Brunson has managed it though with his Thanksgiving line, at least in my book.  Well his […]

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First Circuit Says IRS Cannot Use Smell Test To Squash Plan To Funnel Millions Into Roth IRA

First Circuit Says IRS Cannot Use Smell Test To Squash Plan To Funnel Millions Into Roth IRA

The Benensons had their Roth IRAs each invest $1,500 in JC Holding which owned  JC Export, a newly formed DISC, in 2002.  Then they had their family-owned manufacturing business Summa Holdings pay commissions on its exports which sent $5,182,314 to JC Export from 2002 to 2008. JC Holding had to pay corporate income tax (If JC Export had been owned outright the Roth would have had to pay the tax on unrelated business income).  The after-tax balance ended up in the Roth ready to be invested tax free.  They were not interested in the deferral feature.  The whole point was to fatten up the Roth IRA with some of Summa’s after-tax income.

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