Category: Tax

Young Buck Not Satisfied with Keeping Personal Possessions, Suing IRS

If you’re like us, you were crushed by the news of the IRS canceling the auction of Young Buck’s treasures. Whether it was the ‘marijuana leaf picture‘ or the Titans Fridge, the auction really had a lot to offer and it’s a shame – a damn shame – that Mr. Buck’s attorney put a stop to it.

But having your home raided by IRS Agents wielding shotguns (our vision) is enough to get the most passive citizen upset. So if you’re Young Buck, simply getting to keep your material possessions won’t suffice:

Officials said Young Buck is suing the IRS over the raid, saying the government’s response to his tax problems has hurt his ability to make money and pay off his debts.

Got it? The IRS kicked down the doors, made off with all the man’s goods and now his records won’t sell. It has nothing to do with his music sucking.

Iowa Sets the Bar on Film Tax Credit Inefficiency

From known tax credit antagonist, Joe Kristan:

Before the Iowa Film Tax Credit program exploded in scandal in September 2009, the state had granted $31,967,641 in transferable tax credits to filmmakers. Yesterday the State Auditor reported that $25,576,301 were issued improperly — a full 80% of the credits granted.


Quite the field of dreams. Read more over at Tax Update Blog.

Also see:
What Are Your Taxes Buying Hollywood?

Max Baucus Promises to Monitor the IRS Until the Tax Gap Is Closed ‘Once and For All’

As soon as you catch your breath from laughing hysterically, feel free to continue.

Max Baucus turns 59 69 on December 11th, so even if you assume that he will have the life expectancy of Robert Byrd that means he’s got 32 22 years of watching the IRS’s every move. Sure, we’re making the assumption that the IRS has a snowflake’s chance in Hell of closing the tax gap but that’s an assumption we’re comfortable making.

The General Accounting Office recently stated that the IRS was using “antiquated techniques” to fight tax evasion and Baucus feels compelled to be on top of the situation until the tax gap is a distant memory.

“This report makes clear the IRS needs to develop a comprehensive strategy to fight complex tax evasion schemes and that more work is needed to close the tax gap,” Baucus said in prepared remarks. “I intend to closely monitor the IRS’ progress to make sure they have an effective strategy to root out this tax evasions and close the tax gap once and for all.”

You may now resume laughing until you soil yourself.

Baucus urges new strategy for IRS to combat evasion [On the Money]

Jacques Cousteau’s Son Owes IRS $3 Million

Robert Snell over at the Tax Watchdog has another tax delinquent scoop and for the first time – as far as we can remember – it involves a dashing adventurous type as opposed to your run-of-the-mill hip-hop artist or Nicolas Cage.


Jean-Michel Cousteau (whose beard has to be the inspiration for Steve Zissou, even though the film is a parody of the old man) owes the IRS and the State of California around $3 million from a slew of liens:

• The IRS filed a $109,768 lien against him July 20.
• The IRS filed a $480,061 lien June 22.
• The IRS filed a $600,076 lien June 15.
• The state of California filed a $60,198 lien against him April 29.
• The IRS filed a $212,748 lien Dec. 16, 2009.
• The IRS filed a $238,852 lien Oct. 15, 2009.
• The state of California filed a $41,860 lien Oct. 8, 2009.
• The IRS filed a $193,496 lien April 14, 2009.
• The IRS filed a $187,423 lien April 14, 2009.
• The IRS filed a $518,227 lien April 6, 2009.
• The IRS filed a $396,586 lien Feb. 1, 2008.

Jesus, man. No room for a CPA on your boats? We realize that some have weight issues which could cause a problem but just throw them in the water regularly and they’ll shed the extra pounds in no time.

Ocean explorer underwater on taxes [Tax Watchdog]

Study: Rich People Getting the Pleasure of Assisting Governments Increase Revenues Worldwide

The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.

The worldwide decline in top personal income tax rates over the past seven years generally appears to have come to an end, as this year’s average rate increased 0.3 percent globally, according to KPMG International’s 2010 Individual Income Tax and Social Security Rate Report, released this we remained static in most locations, including the United States, the finding of an upward moving trend in the KPMG report suggests some governments are beginning to opt for a personal tax rate increase to help combat deficits and raise additional revenue.

“In the current economic environment, as many countries are faced with increasing budget deficits, they need funding for various economic stimulus packages,” said Ben Garfunkel, national partner in charge of KPMG LLP’s (U.S.) International Executive Services practice. “Our study indicates that many of these countries are levying tax increases on their highest earning taxpayers in order to increase revenue. We also see governments becoming increasingly sophisticated and rigorous in the framing and application of their tax rules.”


According to the KPMG report, the majority of rate movement in 2010 originated in Europe. The United Kingdom implemented a 10 percent increase raising its top rate from 40 percent in 2009-10 to 50 percent in 2010-11 — the highest rate increase seen globally this year.

Other Western European governments have followed suit in an attempt to increase tax revenues. Iceland, amid the collapse of the banking sector, replaced its flat tax regime with a progressive approach raising the top personal income tax rate by approximately nine percent.

Greece, in response to public deficit concerns, raised its top rate by five percent. Portugal, and, most recently, France raised top rates by three percent and one percent, respectively, to help address budget shortfalls. Ireland’s top rate also increased by one percent in 2010.

Striking the Right Balance

“Personal tax rates can be a crucial deciding factor when evaluating where to locate workforces or the costs associated with international assignment programs,” said Garfunkel. “Tax authorities are trying to strike the right balance as they face increasing pressure to identify and secure greater revenues, while also trying to attract businesses to set up operations in their country.

“High income earners typically have the talent and credentials to migrate to countries that have lower personal income tax rates and a need for skilled labor,” added Garfunkel. “Attracting such individuals — including their tax revenues and disposable income — using a competitive personal tax rate, while also trying to address budget deficits, is a challenge, especially in the current economic environment.”

Top Rates Decrease in Some Countries

Some countries are decreasing their top personal income tax rates. Denmark opted to introduce a stimulus package in hopes of increasing consumer spending and as a result, decreased its top rate by almost seven percent. Croatia, this past July, also dropped its top rate by five percent.

Other report findings include:

• The low flat tax initiatives of Eastern European governments have stagnated. Estonia has abolished its plan to reduce its flat tax rate to 18 percent by 2012, while Latvia increased its flat tax from 23 percent in 2009 to 26 percent in 2010.

•Average top rates in Asia-Pacific declined by 0.4 percent in 2010. New Zealand and Malaysia dropped their rates by five percent and one percent respectively.

•Although the average rates for Latin America jumped 0.8 percent in 2010, personal income taxes continue to remain relatively low in Latin America.

BREAKING: Democrats Suck at Accusing Republicans of Trying to Raise Taxes

So some Democrats thought it would be a cute to try and turn the tables on their Republican opponents by insinuating that by supporting the Fair Tax, the GOP was raising taxes on middle class Americans.

Love or hate the Fair Tax, anyone that takes more than 30 seconds to research the idea knows that if implemented, the Fair Tax would abolish the income tax.

In some recent ads, a few Democratic nominees left that part out entirely:

Research supplied by FairTax.org shows that Democrats in 16 districts have run at least 31 ads blasting Republicans for supporting the tax. But many of these ads neglect to mention the levy is essentially a national sales tax that would replace the current federal tax system.

FactCheck.org recently slammed the Democratic Congressional Campaign Committee (DCCC) for running ads that omitted this fact.

“Democrats are accusing Republicans of supporting a 23 percent sales tax on everything, which would be on top of all existing taxes… it’s misrepresenting by omission of the FairTax idea,” FactCheck.org director Brooks Jackson told The Hill.

The motivation behind this strategy could be due to a number of factors:

1) The Democrats who ran the ads feel that most Americans are gullible enough to believe anything they see on TV.

2) The Democrats who ran the ads don’t understand how the Fair Tax policy would work on its most basic level, thus meeting the intelligence level to serve in Congress.

3) Democrats simply suck at accusing Republicans for trying to raise taxes.

It wouldn’t be a surprise if the first two played a part but come on. Leave the “he/she wants to raise your taxes” to the experts you fools and stick with the lowbrow stuff.

Dem ads against GOP not accurate on crux of FairTax proposal [On The Money]

Deadline Watch ’10: Happy October 15th!

Along with AG’s friendly reminder about the drop-dead deadline for nonprofits today, we’d be remiss if we didn’t call attention to the significance of October 15th deadline.

Maybe you finished things up earlier in the week and today is simply a formality but for many, today is a frantic mishmash of signatures, phone slamming, desperate, last minute emails and – for the holdouts on electronic filing – trips to the post office.


Sure you’re not getting the attention bestowed on April 15th or Chilean miners but – hey! – we remembered you and that should count for something.

So whether you’re finishing up a 1040, a benefit plan’s Form 5500 or converting some poor sap’s IRA, finish up ASAP and go blow off some steam. Another year down.

Earlier:
Deadline Watch ‘10: Happy September 15th!
See also:
Don’t miss these Oct. 15 tax deadlines! [DMWT]
Extended 1040s and Individual NOL Carryback Elections Are Due Today! [Tax Update Blog]

Christine O’Donnell Attack Ad on “Taxman” Chris Coons Uses Witchy-Sounding Music

We defy you to find more appropriate background music for a scene with three spell-casting broads cackling around a cauldron.


But what about that sinister rhetoric? Jim Newell over at Gawker suggests that the ad channels a viral ‘Bed Intruder Song’. Reasoning that the lyrics “Hide your kids, hide your wife, and hide your husband, cause they rapin’ everybody up in here” translated into the “Hide your will, hide your lights, ’cause he’s taxing everything out here.”

Maybe Newell is onto something. If you just imagine boxy eyeglasses and a Members Only jacket combined with Coons’s textbook horseshoe balding pattern, he would have a über-creepy vibe going on. Plus he loves taxes! Yep, this ad is a winner.

[via TaxProf]

Jon Kyl Has His Money on a Two-Year Extension of All Tax Cuts

Does the Arizona Senator know how to pick a long shot or what?

Americans know they are facing a large tax increase on Jan. 1 unless Congress prevents it. President Obama wants Congress to raise taxes on wealthier Americans (including many small businesses). Republicans oppose raising taxes on anyone, especially in this weak economy. Democrats ducked the issue until after the election. The result is that Congress must act in a post-election session; and while economists tell us that permanent tax policies are best, the most likely scenario in this divided Congress is a temporary extension of current rates for all Americans, probably for two years.

Politics is a tricky game. You can’t do away with all the tax cuts since that would result in hell fire raining down all across the land. And extending all the tax cuts indefinitely is a sure fire way to bring back the torches and pitchforks. It doesn’t take a Kennedy School grad to figure that one out.

But Kyl is realistic and that’s not the worst thing in the world. He simply wants to get to a point where we can reform the tax system ans that, dare we say, is a good thing.

Would we prefer him to go off on a wild-ass tangent about how the expiration of tax cuts will mean an uprising of Founding Father proportions? Of course. But we’re talking about a U.S. Senator. Everyone knows the craziest of crazies are in the House. Unless some IRS abolitionist finds his way into the upper chamber. Or a witch. That could ratchet things up a notch.

A Growth Agenda for America [WSJ]