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Obamacare Travesty In Tax Court
The executive summary of that nightmare is that the McGuires indicated that they were not responsible for a shared responsibility payment because they had paid for health insurance. They didn’t report anything about the premium credit, because they did not get Form 1095-A.
The IRS, of course, did know about the credit and now having their income determined that they did not qualify for the $7,092 credit and increased their tax liability by that amount. As is routine the IRS threw in an accuracy penalty.
American Living In Canada Loses First Round In Fight Against Harsh IRS Penalty
Form 5471 is titled Information Return of U.S. Persons With Respect To Certain Foreign Corporations. It makes it sound like Mr. Dewees was into really big stuff, but that was not the case. Mark Feigenbaum, the attorney, gave me a short course in Canadian tax planning. The corporate rate is much lower than the individual and there is relief from double taxation. So you can get a significant deferral by trapping income in a corporation. Because of that lots of very small businesses that would be flow-through entities or disregarded in the US are organized as corporations in Canada. Besides his employment income, Mr. Dewees had some side consulting income. He used a corporation for the consulting income because that is what a lot of people do in Canada.
Grandparents Lose Tax Benefits To Daughter’s Common-Law Marriage
A lot of the complexity of the income tax is inherent in trying to tax income, but that sort of complexity does not really impact regular people all that much. You are probably not running a bank or a life insurance company, maintaining inventories or mining. Some of the complexity introduced by using the income tax as the Swiss utility knife of social policy also does not create complexity that regular people have to deal with. You are probably not developing affordable housing, preserving historic buildings or building golf courses, because you feel so strongly about conservation as seems to be the case with President Trump.
The complexity introduced by using the income tax code to subsidize the working poor, or perhaps their low-wage employers, does impact ordinary people who end up having to pay to have income tax returns prepared that really could otherwise be on a postcard. And it sucks up a good bit of scarce compliance resources and involves the IRS in sorting out matters that would be better handled by social workers rather than accountants.
Billion Dollars In Losses From EY Tax Shelter Knocked Out By Tax Court
There is an old accounting joke about a fellow who came to work every day, opened his desk drawer, looked at a slip of paper, closed the drawer, and went to work. Everybody was curious about the mysterious piece of paper, but they respected his privacy. Finally, though, somebody broke down and took a peek. On the paper was written “Debit by the window. Credit by the Door”.
Debits have to equal credits. Assets have to equal the claims against assets (i.e. liabilities and equity). It has to balance. Accountants get so fanatical about this, that they sometimes confuse things being balanced with things being right. You can be in balance and things can still be wrong, but it can never just be one thing. The discipline of double-entry means that a mistake in one area will also crop up someplace else as long as you are in balance. Scoundrels hate the discipline of double entry.
Take Care If Filing Jointly With Financially Irresponsible Spouse
We don’t know whether Terry’s accountant knew whether or not he was paying the balance due on the return. If he or she did, then there was a failure to recognize that Robin was also a client, whose interest was not in alignment with Terry’s. This is a pretty common failure of tax preparers who focus on minimizing the tax without considering collection issues. Even though it is usually not the right answer, filing separately should always be an option.
Billy The Brony On Hovind Hovindicators and Hovindologists
Lately Kent Hovind has been plagued by supporters leaving his fold. Of those the one I find most intriguing is Billy Summers (Sorry Domineering Deborah. You get most...
The Subtle Genius of Jimmy Breslin
When Jimmy Breslin died a few months ago, it hit me pretty hard. I gave him my standard forbes.com treatment - seeking for his appearance in tax litigation. Other...
Did Not Want To Split Tax Refund With Divorcing Spouse, Loses It All
Another observation I have is that of the preparer and electronic filing. Back in the day, the preparer gave the return to the couple or one of the couple or mailed it to their address and it was up to each of them to sign it. Absent forgery or coercion, it was pretty clear that they had each consented. Now it is the preparer pressing a button that signifies consent to the IRS. Many preparers need to step up their act when it comes to recognizing that with joint returns they really have two clients.
Tax Reform Might Come, Let’s Wait And See
Comprehensive tax reform and simplification is a fantastic idea. We here at the ABC Coalition for DEF just love the idea that you are working on it and totally support you. Of course we are sure that you know the DEF is critical to the American way of life and the health, safety and well-being of the world. We would just like to remind you that the GHI deduction and the JKL credit play a critical role in supporting DEF. So when you are doing your simplifying don’t even think about messing with the GHI deduction and the JKL credit. As a matter of fact, you probably should beef them up a bit and get busy on the MNO exemption that we have been asking for. Other than that, chop away at those special tax breaks and give us a simpler Code
Why Ken Ham’s Ark Is In Kentucky Rather Than New South Wales
Recently some fellow Hovindologists encouraged me to look into a tax controversy concerning the Ark Encounter - Ken Ham's full size model of Noah's ark,...