Category: Tax

Of Course There’s a Nicolas Cage Tax Story on April 15th

It wouldn’t be tax day (in form, if not necessarily in substance) if the Raisin Bran™ of celebrity tax delinquents, Robert Snell, didn’t have a scoop today.

To make it even better, today’s edition is none other than perpetually tax-plagued Nicolas Cage.

In a storage locker last month, cops found Nicolas Cage’s rare $1.5 million, Superman comic book, which was stolen from the actor a decade ago. About the same time, the Oscar winner found kryptonite in his mailbox.

The IRS just sent the financially strapped screen star a $624,934 bill for delinquent federal taxes, according to public records.

If this level of irony doesn’t cause you to believe in some kind of benevolent god, then I feel sorry for you.

IRS hands Nicolas Cage pocket full of kryptonite [Tax Watchdog]

Kvetching About the Complexity of the Income Tax Is Nearly a Century-old Tradition

Joseph Thorndike writes over at Tax.com that bitching about the burdensome nature of income tax is as old-fashioned as plutocrats wearing top hats.

In 1915, Chicago lawyer Charles H. Hamill of Rosenthal & Hamill made headlines with some vigorous complaints about the new income tax, then less than two years old. The law, he said, was “the worst piece of legislative draftsmanship I have ever seen placed upon a statute book anywhere.” Indeed, it was very nearly incomprehensible:

“It is so complicated that it is utterly impossible to understand its meaning save by consulting a palmist.”

So as you can see, things haven’t really changed. To this day, whether you’re paying a lawyer, CPA or palm reader for your time, you walk out more confused than when you walked in and you definitely don’t feel like you got your money’s worth.

Think Taxes are Too Complicated? They Thought So in 1915, Too [Tax.com]

Osbournes Pay Off Tax Lien, May Be on the Hunt for a New Accountant

It sounds like the Osbournes need to find themselves a new Mort Mort Feingold.

“I […] contacted my accountant who said they knew nothing about any lien. The lien has been paid. I do intend to find out how this lien happened without the knowledge of myself or my accountants. I hope none of this reflects negatively on mine and Ozzy’s moral character.” […] “Just because you’re paying someone doesn’t mean they’re doing the job correctly,” she wrote on Friday. Three days later she added, “You can’t rely on anyone but yourself. You have to be on top of your own business affairs. My fault … lesson learned.”

Ozzy Osbourne pays off U.S. tax debts [Reuters]

These Videos More or Less Portray What It’s Like Being an Accountant for Celebrities

Celebrities suck at taxes. This is known. From Young Buck to Jaime Pressly, there are no shortage of talented-ish people that find themselves in a world of hurt when in comes to complying with the IRC. How any accountants to the stars manage to keep their clients from completely losing their shit this time of year is anyone’s guess.

Luckily for us (everyone out there seems to be suffering from a busy season hangover), a couple of videos we stumbled across more or less put this niche expertise into perspective:


Alan Kaufman, Rock Star Accountant from Dan Meth on Vimeo.

The question over at TV.com, however, is whether or not SNL got its idea for Mort Mort Feingold, Celebrity Accountant from Alan Kaufman, rock star accountant. You can debate that if you feel so inclined but the realism of each is what’s noteworthy here. Anyone with firsthand experience in the A, B, C, or D celebrity clients is invited to share anecdotes at this time.

GE Responds to Hoax Tax Press Release in Least Hoaxy Way Possible

Earlier this morning, the Associated Press ran a story based on a hoax press release that stated General Electric had opted to give back its “refund.” You may recall there was a fair amount of wailing and gnashing of teeth after a New York Times article made the company look like huge international conglomerate attempting to minimize its legal tax obligation (talk about nerve). As you may be aware, the “refund” is actually a “deferred tax benefit” and we can’t think of any company that would simply give those back after some pesky article from the Times. Anyhoo, the AP has bit of egg on its face and GE is once again a punching bag and has re-reiterated the fact they DID NOT GET A REFUND.


Of course the last time GE went on a PR offensive, they got schooled by Henry Blodget. On Twitter. So instead of wading back into that scary end of the pool, they shuffled out a spokeswoman to simply say, “It’s a hoax and GE did not receive a refund.”

This is really a missed opportunity for GE, in our opinion. Jeff Immelt could have seized this opportunity to have a sense of humor about the whole thing, acknowledge the efforts of the Yes Men (the hoaxers) and say, “You know, we’re a big company with the best tax law firm right here, in-house, and sometimes people hate on us *cough*The Times*cough* because they do such a good job. And maybe we employ a bunch of Treasury Department alums too. I mean, we’ve got the money. Why wouldn’t we do it? These Yes Men guys, they’re okay. They’re trying to be funny in sort of an Onion sorta way and we’re cool with that. I read The Onion once. It seemed pretty humorous.”

Or something.

“Yes Men” claim hoax GE tax press release [Reuters]

Five Tax Apps to Brighten Up Your Tax Season

Since IRS humor isn’t going to get us through the last few days of tax season, might as well turn to technology for some much-needed usefulness.


Let’s start with an app from the fine folks at the IRS themselves. IRS2Go lets you track the status of your refund and, if you’re of the tinfoil hat persuasion, may make you feel like you’re being watched by TPTB. Not using an iPhone? Try the Android version. To date, IRS2Go has been downloaded more than 250,000 times.

You knew it was inevitable that they’d come out with a tax app for iPad, which the TurboTax people have released just in time for April 18th. One small complaint from users is that the iPad version doesn’t let you log in to update or change current TurboTax info but other than that, this app allows you to prepare and e-file your taxes all without putting down your iPad. Make sure you deduct that $529 you spent on the thing while you’re at it.*

Also from TurboTax, SnapTax is a free app for iPhone and Android (what’s with the BlackBerry hate here?) that lets 1040EZ filers snap a pic of their W-2 to file. The application states it will do all the work for you and is free to try but $19.99 to file.

H&R Block’s free Tax Central app won’t do your taxes for you but it can help you find an H&R near you, estimate your tax bill and help you get together the documents you’ll need to file. It also features a nifty tax glossary in case you forget what AMT is. Tax nerds will enjoy the tax quiz!

Do you live in constant fear of both BPA-tainted receipts and an IRS audit? Stop filing your receipts away in a lead box and try TAX Organizer, which sorts your expenses and organizes your receipts on your device.

*Nothing on this site should be considered tax advice. If you’re really considering deducting your toys, please consult a tax professional.

Inventor of Veg-O-Matic, Pocket Fisherman Said ‘Forget it’ to Company’s Tax Bill

When I was in college I had a roommate who had an odd taste in television. Sure, he liked some sports, Adam Sandler movies and free soft-core porn like the rest of us but what he really enjoyed, what he absolutely relished in, was infomercials.

He recited Ron Popeil demonstrations like he wrote the script. He even took the human interaction down to the psych level (it was his major, after all), telling me that he thought Ron was belittling Nancy for her perpetual doubt about the capabilities of any invention that Ron’s brain could muster. I always thought that Ron was simply too passionate about his products and was simply bringing that passion out in responding to Nancy. That, plus his machines have the noise-making capability of a bulldozer, so he had to yell over them. This usually resulted in a shouting match between myself and my roommate and then we probably got blind drunk.


Anyway, I bring all this up because ol’ Ronny has himself a tax issue in California with Ronco Inventions, LLC and it’s Robert Snell’s tax delinquent scoop du jour:

According to public records, Ronco Inventions LLC owes the state $170,392 in delinquent taxes — or three easy payments of $56,797. Ronco is famed for products such as the parody-worthy Veg-O-Matic, the Pocket Fisherman, and rotisserie ovens. Popeil has turned the infomercial into an art form thanks to catch phrases — “Set it, and forget it!”, “But wait, there’s more!” — and studio audience members who clap like their lives depend on it.

Since Ron is the brains of Ronco, it’s likely that he treats tax issues much like he treated Nancy: with spirited indifference. Which now leads me to wonder if she’s the one in charge of the accounting department. Judge for yourself:

Official: You Can Blame the South for the Income Tax

As you may have heard, 150 years ago today Confederate forces attacked Fort Sumter which began the Civil War. This war turned out to be a pretty big deal as the Union victory effectively ended slavery. But what you may not be aware of is that it also led to the first income tax in our fair land.

From our friend and tax maven-cum-historian Joe Kristan (who somehow has time to post with less than a week to go in tax season):

The consequences of the war, surely unintended by the operators of this gun, included the end of slavery, a horrific death toll, and the first Federal income tax. While the tax was repealed after the war, the idea stayed alive; the federal income tax came back in 1913, and is still with us. So while you struggle with your 1040, save a word of “thanks” for General P.G.T. Beauregard and the rest of the Confederates who attacked Ft. Sumter.

Funny thing – lots of people in the South manage to have no tax liability so aside from LOSING THE WAR the whole thing is probably NBD.

Paul Ryan Is No Ronald Reagan

Charles Krauthammer […] writes that the “most scurrilous” criticism of House Budget Committee Chairman Paul Ryan’s fiscal plan is that it would cut taxes for the rich. This would, he says, be akin to making the same claim against the Ronald Reagan-Bill Bradley 1986 tax reform. Krauthammer goes on to assert that Ryan’s plan is “classic tax reform” that … broadens the base by eliminating loopholes. The facts are otherwise. The Ryan plan, at least what we know of it, would inarguably cut taxes for the rich. It in no way resembles the 1980s tax reforms of either President Reagan or Senator Bill Bradley and Representative Dick Gephardt. And it most assuredly fails to eliminate loopholes. [TaxVox, WaPo]

BREAKING: Republicans Don’t Like President Obama’s Tax Proposals

[K]ey Republicans have not responded positively to signals that President Obama will push for some tax increases in his deficit-reduction plan to be laid out this week. David Plouffe, a senior White House adviser, indicated Sunday that the president would reiterate his call to raise taxes on households making $250,000 and above and also signal a desire to look at other provisions in the tax code that wealthier taxpayers use to their advantage. In his fiscal 2012 budget, released in February, the president called for allowing the Bush tax cuts to expire for income above $200,000 for individuals and $250,000 for couples at the end of next year. That statement came roughly two months after a compromise with congressional Republicans had extended current tax rates for the richest taxpayers for two years. [The Hill]

A Prison Guard Is Now Equally as Effective at Busting Tax Cheats as the IRS

As we have learned, residents of our prison system have proven to be quite savvy at obtaining tax credits, including those intended for first-time homebuyers, alternative-fuel vehicles as well as filing bogus tax returns in order to receive refunds. These scams go along swimmingly until the IRS gets wind of it (anywhere from months to years later), at which time local (and sometimes national) media have some nice filler.


In the latest case of a prisoner tax schemed sniffed out, Troy Fears – who is enjoying a life’s stay in an Arizona prison for rape – spent 2005 to 2009 filing fake tax returns and obtained $119k in the process. He was using “fake W-2’s and apparently said he was filing other inmates’ taxes. He convinced other prisoners he was applying for grants on their behalf so he could get their Social Security numbers.” According to court papers, the IRS was missing this particular scam because “IRS routes [direct deposits] without making sure the name on the account matches the return.” The jig was up when a prison guard intercepted his mail, presumably figured out the tax returns were fakes, and called the authorities. Fears got four years tacked on to his sentence and the guard responsible for catching him can probably expect a “Deputy IRS Agent” certificate (signed by Doug Shulman, natch) in the mail any day now.

Jailed Rapist Gets $119K From Fake Tax Returns [KPHO via TaxProf]