Category: Tax

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]

Donald Trump Once Proposed a One-Time 14.25% Net Worth Tax

Back in 1999, when the The Donald was also faux-considering a Presidential run, he proposed a one-time 14.25% net worth tax on anyone with a net worth of $10 million that would solve all our national debt problems in a blink of an eye.

According to an article published by CNN in November of ’99, DT crunched the numbers himself and “his proposed 14.25 percent levy on such net worth would raise 5.7 trillion and wipe out the debt in one full swoop.” Of course this was all before the SCOTUS determined the outcome of an election, 9/11, Afghanistan, Iraq, George W. Bush somehow winning re-election, Barack Obama being elected President, The Tea Party, Libya and several seasons of The Apprentice. And seeing how Mr. Trump’s politics change like his hair caught in a a gusty wind, it’d be surprising if he still felt strongly about this particular policy. [CNN via TaxProf]

A Government Shutdown Near the End of Tax Season Could Prove to Be Very Inconvenient

Since the IRS made it clear earlier this week that blowing off your 1040 is not an option, you best be on top of this if you want to file pre-April 18th. However, you might run into a wee bit of a problem if you go to the IRS for help.

In all, 92,000 [Treasury] department employees would be furloughed, with IRS staffers working during the height of tax season representing roughly two-thirds of the 35,000 who would still be on the job.

Still, around four out of every five IRS employees would be furloughed. Dan Tangherlini, an assistant Treasury secretary, reiterated in a blog post that taxpayers should file electronically to avoid potential delays in receiving a refund, and laid out other areas where IRS operations would be affected.

Taxpayers with audit appointments should assume their meeting is canceled, Tangherlini wrote, while walk-in IRS assistance centers would be shuttered and customer service phone lines would not be as easy to reach.

Treasury would furlough over 70 percent of employees in shutdown [The Hill]

A Government Shutdown Is Not an Acceptable Excuse for Blowing Off Your Tax Return

Doug Shulman wants you to put that notion right out of your mind:

Doug Shulman, the IRS commissioner, said that people who file electronically during a shutdown would likely not face any delays in having their returns – and potential refunds – processed. But taxpayers who file by paper, Shulman added, may see some delays. “We’ve got a 100,000 employees. Not all of them are going to be coming to work. But we’re going to have a complement here,” Shulman said. “The nuances of who is going to be doing what I’m not ready to get into. The most important thing for people to know is: We’re going to be accepting tax returns and people should file.”

So as Adrienne just mentioned, you can either ask the AICPA for help, call your tax advisor or simply curl up into a ball and shudder in the corner until the 18th passes.

IRS commissioner: You still have to file taxes during shutdown [The Hill]

CORRECTION: The AICPA Will Now Answer Your Last Minute Tax Questions

Correction: We regret to inform readers that no such assistance actually exists, the following is only meant for tax-stumped reporters who need help figuring out tricky tax rules.

Have no fear, little taxpayer, the AICPA is here to help you out if you’re stumped as to how to add up items H, K, L minus M x .412.

This year’s April 18 tax filing deadline is 13 days away, but approximately 59 million taxpayers still have to file their returns, the Internal Revenue Service said on April 4. These taxpayers are still collecting records, wrestling with forms and struggling to get answers to their last minute tax questions.

Edward Karl, vice president of taxation for the American Institute of Certified Public Accountants, and other members of the AICPA tax staff are available to answer questions for end of tax filing season stories about credits, deductions, errors to avoid, what to do if you can’t pay the taxes you owe and what to consider if you need to file for an extension. Taxpayers should be sure to remember that their tax bill is due and must be paid on April 18, even if they file an extension; otherwise penalty and interest fees apply.

The IRS said about 58 percent of the approximately 141 million returns it expects to be filed this year have been filed. About 20 to 25 percent of returns are filed in the last two weeks and about 7 percent of taxpayers will file for an extension. The IRS’s numbers are based on filing statistics as of March 25.

If you are a taxpayer who needs helpyou’re more of the self-service type and prefer interacting with a website over an actual human being, check out the AICPA’s 360 Degrees of Taxes for tax tips and suggestions. We found the Help! I can’t pay my tax bill article to be especially helpful for those who are in the delicate position of owing a bunch of money to the IRS but not actually having any to pay the piper. While the suggestion to take out a loan or borrow from family to pay a due tax bill seems offensive at first, it’s reasonable given that a bank loan will probably carry a smaller interest rate than fees and penalties associated with not paying the IRS promptly.