TIGTA Does Some Digging on the Revolving Door Between the IRS and Large Accounting Firms
The Treasury Inspector General for Tax Administration released a report Tuesday [PDF] they initiated in response to a Congressional request from Sen. Elizabeth Warren (D-Mass.) and Rep. Pramila Jayapal (D-Wash.) to evaluate employees moving between large accounting firms and the IRS, a.k.a the “revolving door”. The Congressional request specifically noted interest in large accounting firms. […]
House Speaker Kevin McCarthy Celebrates Defunding the Agents the IRS Wasn’t Gonna Be Able to Hire Anyway
Last year’s Inflation Reduction Act allotted a whole bucket of cash to the IRS ($80 billion) to modernize its ancient systems and bring on new employees, a lot of employees. At the time, we wondered where the IRS was going to find tens of thousands of people with a bachelor’s degree and 30 units of accounting […]
AI Poised to Put Fake IRS Agents Out of a Job
Of all the occupations most at risk of being replaced by synths AI in the near future — bookkeepers, programmers, and washed-up accounting blog writers, to name a few — no one really talks about how ChatGPT, Bard, and Microsoft’s Bing AI (if you’re counting that one) will impact scammers. You know, those people who […]
Hiring Watch ’23: The IRS Is Looking For a Few Good Tax Attorneys
With nearly $80 billion allotted over the next 10 years thanks to the Inflation Reduction Act, the IRS is going on a hiring spree to improve its woeful customer service (to taxpayers and tax professionals alike) and technology; wade through the piles of individual, business, and amended paper tax returns that have accumulated over the […]
Your Naughty IRS Employee of the Day
Deena Vang Lee of Fresno, CA, was indicted in April 2019 and charged with wire fraud, aggravated identity theft, aiding and assisting in the preparation and presentation of false and fraudulent tax returns, and making and subscribing false and fraudulent tax returns. She was accused of preparing family and friends’ returns for a fee that […]
Fourteen People Who Inspired Future Tax Criminals in 2022
The IRS Criminal Investigation unit has released its top cases for 2022 and in it we get reality TV personalities, a rogue tax preparer, some garden variety PPP fraud, and even a former decathlete with his own Wikipedia page. Pretty sure some of these people showed up in Accountants Behaving Badly, an irregular feature we […]
House Republicans Go After IRS Agent Funding But Leave Technology Funds Alone Because Even the GOP Agrees IRS Call Wait Times Suck
This lady is going to be on hold for a long time, her phone isn’t even plugged in to the wall. The GOP-led House voted 221-210 on Monday to eliminate almost 90 percent of $80 billion in new IRS funding under the Inflation Reduction Act, much of which is supposed to be used to fund […]
Interested in Interest Rates? The IRS Has Something For You
The Fed isn’t the only one raising interest rates these days. The IRS did too—and it has now for four consecutive quarters, including the first quarter of next year. Beginning on Jan. 1, 2023, the rate for overpayments and underpayments will be 7% per year, compounded daily, for individuals, up from 6% in Q4 of […]
The Widening of the Tax Gap is the IRS’s Fault, Says the IRS
Accounting Today reported on Friday: The estimated gross U.S. tax gap increased to $496 billion annually for tax years 2014 through 2016, a rise of over $58 billion from the prior estimate — and the Internal Revenue Service estimates the gross tax gap will rise to $540 billion for 2017-2019. “The increase in the tax […]
The IRS Is Soon to Be Leaderless at the Worst Possible Time
In case you haven’t heard, IRS Commissioner Charles Rettig will be leaving the agency in three weeks and his replacement has not yet been found, leaving a leadership void. The Wall Street Journal wrote about it yesterday: With less than three weeks left in Charles Rettig’s term as Internal Revenue Service commissioner, President Biden hasn’t […]
The IRS Scheduled a Website Outage on September 15, Can’t Figure Out Why People Hate Them
Whose bright idea was this?? Helping a buddy make his estimated tax payment I see this on IRS Direct pay. Seriously IRS?! You chose the submission deadline to run planned outages?! This is a prime example of how inefficient the IRS is. So damn infuriating! pic.twitter.com/ahDpdsPgRN — Albert J. Campo, CPA, MBA (@ajthecpa1226) September 16, […]
Anyone Looking Forward to a Highly Militarized IRS SWAT Team is Going to Be Sorely Disappointed
Because the IRS SWAT team memes your crazy aunt Kathy is spreading on Facebook are getting out of control, the AICPA has stepped forward to clarify: no, there will not be 87,000 armed IRS agents deployed to bang down the doors of American taxpayers. From the Journal of Accountancy: Reaction to increased funding for IRS […]
The New IRS Recruiting Brochure is WILD
Remember how the military tried to recruit Call of Duty players to be drone pilots? Maybe the IRS can take a page from their book and convince young people there is first-person fun to be had bum-rushing naughty taxpayers’ homes. This isn’t actually from a recruiting brochure, you guys.
The IRS is So Broke Staff Have to Buy Their Own Paperclips
While we continue to wonder which hat the IRS is going to magically pull 87,000 new agents out of, more stories are coming out about just how tight things are at our nation’s tax collector. Like this recent NBC News article: Will Kohler, who works as a tax examiner at the IRS office in Cincinnati, […]
Where TF Is the IRS Supposed to Find 87,000 Agents?
While various factions bicker over the Inflation Reduction Act, we have one question: where is the IRS supposed to find 87,000 agents!? In case you haven’t heard or seen your aunt sharing Impact font memes about it, Senate Democrats want to throw some cash at the IRS (among other things not getting into here): The […]
CPA Firms That Referred Clients to Alliantgroup Have Been Subpoenaed, Asked to Turn Over 11 Years of Client Data
On May 20 the Houston headquarters of R&D tax credit consulting firm Alliantgroup was raided by the IRS, in the weeks since we’ve had plenty of speculation about the whys and we’ve heard countless accounts from current and former Alliantgroup employees about the “evil, toxic, and emotionally damaging company” that employed them. We’ve now learned […]
Big 4 Conflicts of Interest Are in Regulators’ Crosshairs, EY Tops the Independence Naughty List
There’s a story in the New York Times today about how EY “devised an elaborate arrangement” for nonprescription drugmaker Perrigo to avoid more than $100 million in taxes, an arrangement that was questioned by Perrigo’s then-auditor BDO. Perrigo did what any reasonable tax-avoiding nonprescription drugmaker would do and dropped BDO for EY, hence totally resolving […]
The IRS Is Paying an Unwelcome Visit to Alliantgroup (NEW UPDATE) Experts Weigh In On Feds’ Raid of the ‘Blue A’
[UPDATE 13] Jonathan Curry of Tax Notes wrote an interesting article on June 16 about why federal authorities would conduct a court-ordered raid of an established company like Alliantgroup, and he talked to law professors and a tax lawyer about the legal ramifications of that particular action by the Justice Department and IRS Criminal Investigation. […]
One IRS Cafeteria Is Serving Musty Tax Documents For Lunch
When it comes to the IRS’s backlog of paper tax returns, a picture is worth a thousand words. This photo was tweeted last week by Natasha Sarin, an economist, law professor, and counselor for tax policy and implementation at the Treasury Department. At the IRS in Austin, cafeteria is overrun with paper returns awaiting processing […]
The Economy’s So Bad the IRS Got Bullied Into Upping the Mileage Rate Midyear
As most of you have heard by now, the IRS is increasing the standard mileage rate by four whole cents as of July 1. Via Journal of Accountancy: While the IRS usually sets the optional standard mileage rates for computing deductible costs of operating an automobile only at the beginning of each calendar year, Thursday’s […]
Guy Compares the IRS to Barnes & Noble
“The IRS destroying data for an estimated 30 million filers in March 2021 is appalling. This will create massive chaos for taxpayers in terms of filing time and refunds. The fact that the IRS is a business that operates in the dark ages in terms of technology further compounds the taxpayer’s burden. They act like […]
Busy Season Problems: Somebody Please Get the IRS a Damn Scanner
We usually reserve this space on Going Concern for our tax preparer friends who have to deal with mostly client-initiated and other unexpected problems on a daily (hourly?) basis during busy season. And we’ll get to them next week as they near the home stretch of the April 15 18 filing deadline. But today I […]
Your Naughty IRS Employee of the Week
That dubious award goes to longtime IRS employee Wayne Garvin, who might be hanging out in Club Fed for as long as five years after pleading guilty to tax evasion on March 22. Garvin, 57, a resident of Columbia, SC, who most recently worked as a supervisory associate advocate with the IRS’s Taxpayer Advocate Service […]
The IRS Wants to Hire 10,000 New Employees in the Next Year. So What Are They Paying?
Last Friday I buried a link about the IRS’ latest hiring push in Footnotes but I think it deserves its own little mention if only to discuss the pay. That’s all that matters, right? Before we get to that, my handlers have asked me to remind you that Footnotes is a weekly wrap-up of accounting […]
Hiring Watch ’21: The IRS Needs Help Taking Down Hollywood Tax Cheats
Outside of press releases about the IRS Criminal Investigation Unit busting people for money laundering and reminders that the taxpayer advocate released her latest lengthy report to Congress about how well (and not so well) the IRS is doing, we don’t get a lot of email from everyone’s favorite parody video maker. But buried in […]
Your Naughty IRS Agent of the Day
His name is Bryan Cho (aka “Yong Hee Cho”) and he was the recipient of a 10-count indictment from the U.S. Attorney’s Office of the Eastern District of New York on Jan. 26, charged with possession of a fake foreign passport, aggravated identity theft, making false statements during a background check, and wire fraud in […]
At Least There Is One IRS Employee Who Is Proud to Say He Works For the IRS
“The IRS remains dedicated to improving service to taxpayers, modernizing its systems and maintaining the integrity of the tax system, while also protecting the health of its workers and American taxpayers. The way the IRS has responded to the challenges we faced this year serve to highlight the significant role that the IRS plays in […]
2021 IRS Standard Mileage Rates Have Arrived
Here they are, in the event you actually resume traveling to client sites next year: Beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020, 16 […]
Hiring Watch ’19: Become the Next National Taxpayer Advocate
The woman in the photo above is Nina Olson. She is the National Taxpayer Advocate. Olson has been the National Taxpayer Advocate since March 2001. But she will retire on July 31, 2019. Now you, tax guy or tax gal, can be the next National Taxpayer Advocate and write ridiculously long reports to Congress each […]
IRS Poaches a KPMG Managing Director and Issues a Press Release, Part I
The IRS has itself a new associate chief counsel, international, in the Office of the Chief Counsel, and the agency plucked him away from our favorite four-letter Big 4 firm. Peter Blessing is his name, and international tax law is his game. “We are very fortunate to attract an individual of his caliber and expertise,” […]
Lots of IRS Workers Will Have to Trudge Back to Work From Mandatory Unpaid Vacation
It’s hard enough being an IRS employee during tax season when you’re receiving a paycheck. But having to work as the start of tax season nears without being paid and having to resort to selling some of your belongings on eBay or Craigslist to make ends meet ROYALLY SUCKS. But this is the current reality […]
2019 Tax Season Finally Gets a Start Date
After Trump administration officials said on Jan. 7 that the IRS would send out tax refunds during the partial government shutdown, the agency took to Twitter last night to announce the start date for the 2019 tax-filing season: #IRS confirms it will begin processing tax returns on Jan. 28, 2019 and issuerefunds as planned. See […]
The IRS’s First Instagram Post Was of … Flamingos
Are you guys following the IRS’s new Instagram page? Yeah, me neither. But we’re not 18 to 24 years old—the age group the agency is trying to target with its newest social media account. Since it launched on Nov. 30, the IRS currently has 2,478 Instagram followers, who will find tax tips and information in […]
The IRS Is Your Gross, Hairy Uncle Who Burps and Farts a Lot
Imagine sitting at a table with your family and closest friends enjoying the perfect Thanksgiving feast. The turkey is cooked to perfection, the ham is tender and juicy, the mashed potatoes are creamy and the gravy is smooth, the stuffing is savory, and the cranberries are tangy. Even the green bean casserole doesn’t make you […]
It’s Official, Finally: Charles Rettig Is the New Commissioner of the IRS
I’m sure the majority of you guys either probably don’t care or have already heard by now, but the Senate finally got around to confirming Charles Rettig as the new IRS commissioner on Sept. 12. The poor guy had been left hanging in the wind since July 19, when the Senate Finance Committee voted 14-13 […]
So Is Charles Rettig Going to Be the Next IRS Commissioner or Not?
Good morning/afternoon, GCers. We hope you had a nice, relaxing Labor Day holiday. Last week, while I was driving to Binny’s Beverage Depot to pick up some Pipeworks Ninja vs. Unicorn IPA to drink over the holiday weekend, I was wondering why things have been quiet lately regarding the confirmation of Charles Rettig as the […]
Charles Rettig Is One Step Closer to Earning His IRS Commissioner Placard
Beverly Hills tax attorney and Academy of Magical Arts member Charles Rettig is on the cusp of becoming the next commissioner of the IRS, after the Senate Finance Committee voted 14-13 on July 19 to send his nomination to the Senate floor. The nomination vote, which fell along party lines, had to be postponed until […]
Trump’s Supreme Court Pick Wrote Majority Opinion in Loving v. IRS
As Politico tax reporter Bernie Becker pointed out today, federal appeals court judge Brett Kavanaugh, who President Trump nominated to replace the retiring Justice Anthony Kennedy on the U.S. Supreme Court, wrote the majority opinion in Loving v. IRS that the tax agency does not have the legal authority to regulate tax return preparers in […]
IRS Commissioner Nominee Pledges He Will Work for All Taxpayers (Not Just Donald Trump)
Charles Rettig, the Beverly Hills, Calif., tax attorney who was nominated by President Trump to head the IRS and who once wrote that Trump’s lawyers should not advise him to release his tax returns, told senators on June 28 that he would work on behalf of the average Joe taxpayer, not just the rich. The […]
Religious Groups Think New Tax On Churches Is Blasphemous
Religious groups are starting to catch wind of a new tax quietly imposed by Republicans on churches and synagogues—and they are pissed. Yes, you read that correctly: a new tax imposed on churches. Politico reports: [Republicans’] recent tax-code rewrite requires churches, hospitals, colleges, orchestras and other historically tax-exempt organizations to begin paying a 21 percent […]
Man Who Would Have Unenviable Task of Overseeing Implementation of New Tax Law Changes at IRS Will Have Confirmation Hearing This Week
That man is Beverly Hills, Calif., tax attorney and member of the Academy of Magical Arts, Charles “Chuck” Rettig. The Hill reported last Friday that the Senate Finance Committee will hold a hearing scheduled for June 28 to consider Rettig’s nomination to be the next IRS commissioner. Rettig was nominated by President Trump earlier this […]
The IRS Has the Mother of All Nightmare Legacy Systems
Legacy systems are awful — so awful it’s the first thing I wrote about on Going Concern. To refresh your memory, legacy systems are obsolete software/hardware with so much technological baggage that they make you want to run away screaming, but you can’t for one reason or another. The most significant reason, unfortunately, is that […]
IRS Scammers Coming Right at YOU, Tax Professionals
We've talked before about how unlikely it would be for an accountant to fall for the ol' "This is the IRS and you're about to be arrested unless you pay your overdue taxes" phone trick, but it seems that some enterprising up-and-comer at IRS Scams, Inc. realized that a few tax professionals would download a […]
Some IRS Scammers Trying the Good Cop Routine Now
Figuring they can catch more flies with honey than with vinegar, a few IRS crank yankers have switched up their MO: Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but now the IRS is receiving new reports of scammers calling under the guise of verifying tax return […]
IRS Scammers Making Sure We Get the Point
As if the phone calls weren't enough, these clowns seem to be entering the "operation blitzspam" stage of their plan: The IRS said it has seen an increase in reported phishing and malware schemes, including 1,026 incidents reported in January, up from 254 from a year earlier. The trend continued in February, nearly doubling the […]
Would an Accountant Ever Fall for a Phony IRS Call?
A couple of years ago, Sam Antar shared a recording of his conversation with a fake IRS agent with us. The poor dope on the other end of the line didn't know what hit him. What's been quite amazing is that the calls from fake IRS agents seems to be getting worse since the agency […]
IRS Having One of Those Days
Richard Rubin reports that a "hardware failure" at the IRS has affected several systems and that Ted Cruz's favorite agency is "temporarily unable to process electronically filed tax returns." At least some of the older tax partners out there are enjoying this moment. [WSJ]
Opening Day of Tax Season Less Than a Month Away
Yesterday the IRS released some important dates for the upcoming tax season including the official start date: January 19, 2016. Also worth noting is that for 2016, the most overrated tax deadline of the year is April 18th because the District of Columbia will celebrate Emancipation Day on April 15th. This means auditors will have […]
Coca-Cola Can’t Beat the Feeling That Its Taxes Are Just Fine
Coca-Cola Co. is learning that the IRS side of life includes a challenge to its transfer pricing method: Coca-Cola Co. said it has been notified by the Internal Revenue Service that it owes $3.3 billion in federal income taxes, plus interest, after an audit found the company’s reported income from 2007 to 2009 should have […]
IRS Was Just Kidding When It Said Cyber Criminals Tried to Access Tax Return Information for 225,000 Households
It was quite a few more than that, actually: The IRS reported in May that cyber crooks used stolen Social Security numbers and other data acquired elsewhere to try to gain unauthorized access to prior-year tax return information for about 225,000 U.S. households. That included about 114,000 successful attempts and 111,000 unsuccessful ones. On Monday, […]
IRS Phone Scam Mastermind Given 175 Months to Think About His Life Choices
If you or someone you know have been thinking about getting into the IRS Crank Yanker business, you might want to be aware of the consequences should the authorities come calling: Sahil Patel was sentenced to 175 months in prison and $1 million in forfeiture for his role in organizing the U.S. side of a […]
IRS to Tax Pros: You’re Not Helping
Perhaps you've heard that the IRS is a little shorthanded? You know, that the people they do have are overwhelmed and can't get to the phone as often as they would like? Your suggested work-around is not making things better: “Each filing season, the e-help desk receives phone calls from taxpayers because their […]
A Tax Shelter Board Game Is a Thing That Exists
Thanks to the Internet Jungle known as Reddit, TIL that there is a board game called Stick The IRS — The Tax Shelter Game. YES. Here's the description on Amazon: The players move around the colorful board, landing on opportunities to earn income, spend money on non-deductible expenses and to purchase a variety of tax […]
The IRS Pimped Its Ride But Is Still Driving a Jalopy
When one senator asked how the agency could still be using such old systems when it spends over $2 billion a year on information technology operations, [IRS Commissioner John] Koskinen explained that the money has been going into upgrading its systems, which were customized for the IRS in the 1950s and 1960s. " It's like […]
IRS Commish Is Still Bitching About Budget Cuts, Threatening a Terrible Filing Season Ahead
Budget cuts at the IRS could delay tax refunds, reduce taxpayer services and hurt enforcement efforts, IRS Commissioner John Koskinen said Thursday. About half the people who call the IRS for assistance this filing season won't be able to get through to a person, Koskinen said. Once tax returns are filed, there will be fewer […]
Kids These Days Trust the IRS More Than Olds Do
There are plenty of comparisons between flighty, mysterious Millennials and their generational predecessors, but this is a new one: Milennials (18-24) trust the IRS (73%) to enforce the law fairly more than people over 50 do (54-56%), says new IRS oversight board survey. — Richard Rubin (@RichardRubinDC) December 8, 2014 What do we make of […]
Here’s Your Chance to Own a Yellow Corvette Thanks to the IRS
One taxpayer's loss is your gain! The IRS is offering up for auction a 2007 Chevrolet Corvette Z06 and a 2005 Chevrolet SSR Pickup, both painted in clean drug test piss yellow. They've also got a 2006 Mercedes Benz CLS 55 AMG, a 27 foot boat, and a snazzy 2007 Chevrolet Silverado with nearly 200,000 […]
Somehow People Are Still Falling for Stupid IRS Scams
You're sitting there minding your business when you see a Washington, DC number ringing your cell. No, it's not me calling (you wish). When you pick up, a scary man who sounds more like a disgruntled Indian call center worker than an IRS agent begins threatening you with jail if you don't pay what you […]
Judge: AICPA Was a Little Melodramatic About IRS’s Voluntary Registration Program
Earlier this year, the AICPA warned that they would go on a jihad against the IRS if our favorite sovereign tax authority went ahead with a plan to offer voluntary tax preparer registration. Getting really dramatic about things, the AICPA basically complained that the IRS plan conflicted with everything the CPA designation stands for and […]
Treasury Department Tells House Committee to Bug Off Until After Election Day
Today, Ways and Means Committee Chairman Dave Camp (R-MI) wrote to Department of Treasury Secretary Jack Lew regarding the Administration’s refusal to produce a key witness for interview prior to the election. The Committee is seeking to speak with Hannah Stott-Bumstead, who was the first Treasury official informed that the IRS had “lost” two years […]
Someone Made a Documentary About Lois Lerner And You Can Watch It Tomorrow*
The Hollywood Reporter has the scoop on the movie event of the year: Perhaps unbeknownst to her, former IRS official Lois Lerner will be making her film debut on Oct. 14 in a documentary where she’s one of the villains. The film is called Unfair: Exposing the IRS, and it will screen in 674 theaters […]
Adam Steele is Going to Pry Your $63 PTIN Fee Out Of the IRS’s Cold Dead Hands
Thank God for people like Adam Steele, CPA. Not only has his free-range facial hair been the non-ironic inspiration for the irony of hipsters everywhere, he’s also the frontman for the PTIN class action lawsuit against the IRS because Adam Steele is the kind of guy who isn’t going to put up with the IRS’s […]
Mad Scientist Gets Prison Time for Using His Dog and Cat in a Tax Avoidance Scheme
You know, I often joke that my cats Buck and Cash are interns, assistants, accountants, and CEOs of the fictional company that is my home office. But this guy clearly took that too far when he used his pets to avoid taxes: [Scientist Mathew] Zuckerman's tax-avoidance schemes included naming his dog and cat as directors […]
Quote of The Day: The IRS Follows the Law, When They Can
Today, IRS Commissioner Koskinen painted a clear picture of how the IRS plans on “overseeing” billions of dollars in taxpayer subsidies. When asked by Health Subcommittee Chairman Brady if the IRS would be following the law and collecting taxpayer dollars that went to people who were not eligible, Koskinen simply said, “Wherever we can, we […]
The AICPA Just Sued the IRS Over “Purported” Voluntary Tax Preparer Program
Calling it "an illegitimate exercise of government power," the AICPA has now taken their dislike of the IRS' voluntary tax preparer program to court: The American Institute of CPAs (AICPA) today issued the statement below by AICPA President and CEO Barry C. Melancon, CPA, CGMA, regarding the filing of a federal lawsuit in the U.S. […]
IRS To Crack Down on Idiots Who Misuse Refund Direct Deposit
The Journal of Accountancy's unnecessarily dramatic headline — Limit on direct deposit of refunds will go into effect in 2015 — doesn't quite capture what's really going on here. What's really going on here is that the IRS wants to limit those who have lots of refunds put in their account. Presumably, a taxpayer should […]
IRS Goes Ahead With Voluntary Tax Preparer Program Despite AICPA Objection
Stick that in your pipe and smoke it, Melancon: WASHINGTON — The Internal Revenue Service announced today that guidance will soon be issued outlining a new voluntary program designed to encourage education and filing season readiness for paid tax return preparers. The program will be in place to help taxpayers during the 2015 filing season. […]
AICPA Ready to Go On a Jihad Against the IRS If This Voluntary Tax Preparer Nonsense Continues
The IRS has heard from the AICPA before on its plan for voluntary tax preparer registration, and that first note wasn't very nice. That first warning was basically a fish head left on the IRS' doorstep, but apparently they didn't get the message. The AICPA is back with an even more strongly-worded letter, this time […]
IRS Can’t Afford to Upgrade to Windows 7 But Can Afford to Pay Microsoft to Use XP
So, this happened on the Hill today: Koskinen said IRS hasn't been able to upgrade yet to Windows 7 because of funding. — Accounting Today (@AccountingToday) June 20, 2014 According to Engadget, over half of IRS computers are still running Windows XP, and the plan is to upgrade to Windows 7 (which, as we all […]
The IRS Reminds You To Kindly Remove That Annoying Circular 230 Disclaimer From Your Emails
The word from NJSCPA: According to a story published on TaxAnalysts.com, the IRS Office of Professional Responsibility will send letters asking practitioners to stop using Circular 230 disclaimers saying the disclaimer is required. Many practitioners continue to use the Circular 230 disclaimer in their emails even though the IRS finalized regulations that remove the covered […]
Latest Twist in the IRS Scandal Reveals The IRS Had an Awful Email Policy
If you believe the IRS when they said a good chunk of Lois Lerner's emails were vaporized due to a computer crash, you are probably also the type who believes you are the last living heir to a Nigerian prince and the lucky 1,000,000th visitor to a website. Maybe this excuse would seem plausible in […]
The IRS Quietly Tweaked Your Rights as a Taxpayer
You may have noticed some buzz about the recently released Taxpayer Bill of Rights, a list so basic it's a wonder it has to exist at all. But this is the IRS we're talking about so probably better we have it. The most recent version is pretty cut and dry: 1. The Right to Be […]
Now on Day 389, the IRS Scandal Has Reached the Supreme Court of Brazil
Yes, TaxProf is still diligently counting the days: Thiago Sorrentino was kind enough to let me know that the Supreme Court of Brazil (the Supremo Tribunal Federal) has cited my daily roundup on the IRS Scandal in Medida Cautelar NA Susepnsao De Tutela Antecipada (STA/752) 389 days of scandal? It seems like just yesterday we […]
IRS Throws Hissy Fit About Not Being Able to Regulate Preparers, Gives Up On Everything
The IRS has decided that, as a result of the recent decision preventing it from regulating unenrolled tax return preparers, disbarment or suspension from practice before the IRS cannot include a ban on tax return preparation or blocking an individual’s preparer tax identification number (PTIN). Therefore, the Service announced that certain tax return preparers who […]
The AICPA Voiced “Deep Concerns” About the IRS’ Voluntary Tax Preparer Proposal
It isn't often the AICPA throws out serious words like "deep concerns," yet they just did in regards to the IRS' proposed voluntary tax preparer program. Those deep concerns are the program itself, how quick the IRS is trying to get it in place and the confusion that might result from stupid taxpayers thinking "regulated" […]
The IRS Has Given Up Its Fight to Regulate Tax Preparers
The IRS decided against continuing a court battle on whether it has the legal authority to mandate testing and continuing education for paid tax return preparers. The agency had until May 12 to file a petition with the US Supreme Court to appeal two lower courts' rulings that it could not regulate the 600,000 to […]
House Republicans Still Keeping Themselves Busy Trying to Ruin Lois Lerner’s Day
House Republicans are taking action on multiple fronts this week against former Internal Revenue Service official Lois Lerner, pursuing criminal charges against her for alleged violations that include contempt of Congress and leaks of confidential taxpayer information. Lerner’s attorney, William Taylor, said Wednesday that the referral is “just another attempt by Republicans to vilify Ms. […]
The IRS Has 99 Problems But Obamacare Ain’t One
We no longer run a daily "quote of the day" over here at GC, but if we did, these thoughts from former acting IRS commissioner Danny Werfel would certainly be in the running. POLITICO got to pick his brain recently and while he refused to answer any questions about that Lois Lerner chick and how […]
Someone at the IRS Accidentally Brought Home Unsecured Data on 20,000 Fellow Employees
I mean it happens, right? I mix up my "work" and "totally not work and NSFW for that matter" thumb drives all the time. From BBW: The IRS is contacting the current and former employees involved, almost all of whom worked in Pennsylvania, Delaware and New Jersey. The information dates to 2007, before the IRS […]
IRS Agents Pack Heat, Rarely Discharge
IRS agents have guns. By that I don't mean huge biceps.1 I mean the things Ted Nugent uses to shoot elk and open beers and unclog toilets. In 2008, when I was about to graduate with my B.S. in accounting, I attended the job fair at Utah Valley State College. No CPA firms were there […]
Actually, the IRS Wants You to Pay Taxes on Any Bodily Fluids or Future Children You Sell
This one has the potential to be a real gamechanger for college students, homeless alcoholics, and non-smoking 21 – 30 year old intelligent Jewish women everywhere: To Nichelle Perez, the $20,000 she received for donating her eggs for fertility treatments was a tax-exempt payment for pain and suffering. Not so, said the U.S. Internal Revenue […]
A Friendly Notice for Celebrities: Your Accountant Is Not Your Mother
Fresh off Rihanna's massive settlement from her former accountant Peter Gounis and his firm Berdon LLP, we have another story of a poor celebrity led wrong by his trust financial advisor. Colin buried it in ANR but here you go: McKnight has filed a lawsuit against Vernon Brown and Company, claiming Brown ruined his life […]
The House Ways and Means Committee Is Still Mad at the IRS
GEEZ you guys, let it go already: [T]he Ways & Means Committee went ahead today and approved H.R. 3865, the STOP Targeting of Political Beliefs by the IRS Act. As its title suggests, this legislation will stop the IRS in its rush to implement these rules. This allows Congress to continue its investigations, which have […]
Here Is a Short List of People Less Deserving of Bonuses Than IRS Employees
Not sure if you heard the news but the IRS has made friendly with its employee union and will distribute $43 million in bonuses, $32 million short of what the union says employees were owed. Well, Senator Orrin Hatch of Utah heard, and he felt this way about it: "It’s hard to think of a […]
What Happens When You Mix a Seedy Strip Club, an Unsophisticated Taxpayer and the Tax Court?
In a better world, the daily fraud perpetuated at a strip club wouldn’t go beyond silicone implants and claims of paying law school tuition. But alas, these are dark times we find ourselves in. Squarely within the seamy underbelly of Jackson, Michigan stood Potter’s Pub, a “gentlemen’s club.” Potter’s derived its business entirely from cash […]
QOTD: Just How Deep Is That Hole, Exactly, Sir?
It's been a looooong time since we've done a Quote of the Day but this one is too good to ignore yet not interesting enough to warrant an entire missive on its true meaning. This is new IRS commissioner John Koskinen to reporters in Washington after his swearing-in this afternoon: “It took a little while […]
Senate Finance Committee Approves Guy for Thankless Job
NEWS: Finance Committee Approves Nominees for IRS Commissioner, Deputy Treasury Secretary, ITC http://t.co/j2UTWpHof2 — Senate Finance Cmte (@SenateFinance) December 13, 2013
Obama’s Pick For Top IRS Guy May Have Saved the World From Disaster Once
TIL: John Koskinen can take credit for the world being exactly the same on January 1, 2000 as it was on December 31, 1999: Twelve years later, the Year 2000 date change panic that riveted the public and government leaders seems like something out of a disaster movie. But in the late 1990s, there were […]
IRS’ Improved e-File System Is a Total Success Except For Two Jerks Who Foiled It
It's a project ten years in the making and in case you didn't get the memo, the Modernized e-File system officially replaced the Legacy e-File system this filing season. What does this mean? Hell if I know. I do know that every single electronic return went through the MeF this filing season, which means they […]
Former GB Packer LeRoy Butler’s Charity May Have Kind of Forgotten To File With the IRS
And just wait until you see the part where he bitches on Twitter about it. First, the story from the Milwaukee Journal Sentinel: The IRS is looking into the charity run by former Green Bay Packers player LeRoy Butler. The agency is probing why Butler has been raising money in Wisconsin over the last decade […]
GOP Congressman: Sprawling, Despised Government Agency with a History of Inefficiency That Just So Happens to Be a Convienent Political Target Is Misprioritizing Things Because ObamaCare
That is, Dave Camp doesn't believe the IRS's story that the shutdown is the cause of the delayed tax filing season: “The IRS claims that it will be unable to process tax returns on time, despite being able to do so multiple times in the past when it has been responsible for adopting major changes […]
Furloughed IRS Employee Goes on “Hunger Strike” To Protest Government Shutdown
How admirable of Donna Smith to forgo every single meal since October 7th to protest the government shutdown that is keeping her out of the office. Smith, who has worked for the IRS for 12 years (in what function, we do not know), wants to send a strong message to our nation's lawmakers, to show […]
GOP Senator: Lois Lerner’s Retirement Is Only the Beginning of Us Dragging This Thing Out
Last week, Lois Lerner was "technically still employed," but Bloomberg's Richard Rubin reports that the former director of exempt organizations is out of there effective today. HOWEVAH! If you thought this was the end of political gamesmanship, then you would be sorely mistaken: “Just because Lois Lerner is retiring from the IRS does not mean […]
The IRS Apprentice Video Is Still Better Than Anything Donald Trump Has Ever Done
Yes, it's campy. Yes, it's poor production quality. Yes, it's the IRS. But you CANNOT deny that, compared to Donald Trump's track record, the video is not that bad. [via @WaysandMeansGOP]
IRS to Recognize All Same-sex Marriages, Regardless of Resident State
Married filing jointly is married filing jointly! The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes […]
Judge Not Amused by Nebraska Man’s Dirty Trick to Discourage IRS Agents
There really should be a warning about operating heavy machinery in the presence of Service employees: An Omaha man has been sentenced to three years’ probation after dumping dirt from a front-end loader truck at the feet of Internal Revenue Service officers who were trying to seize his boss’s dump truck. U.S. Magistrate Judge Thomas D. Thalken […]
People are Getting a Little Worked Up Over Proposed IRS Non-Profit Guidance
YOU SHALL NOT STIFLE MY CONSTITUTIONAL RIGHT TO BE A PARTISAN GROUP PRETENDING TO BE A SOCIAL WELFARE GROUP! Richard Rubin points out this morning that the topic at hand — Guidance for Tax-Exempt Social Welfare Organizations on Candidate-Related Political Activities (REG-134417-13) — is generating quite the vocal buzz. This should come as no surprise […]