Category: Tax

Start the Tax Day Party Without Me

Tonight will be the 26th tax day party of my accounting career. Pardon me if I don’t stick around very long.

The only really memorable tax day party was my first one. The tax group of the “Big 8” firm where my career started went to across the street to old Busch Stadium in St Louis, where the firm rented a box for the Cardinals baseball game. I happily drank their beer, only to be canned exactly a week later. That sort of took the fun out of the whole thing (though if I did something at the party to get fired from good old PW, it was the best career move I ever made).


So I found a job with the Des Moines tax group of another big firm. There the tax day party doubled as a bachelor party for one of the other staff accountants, and we all (well, the boy accountants) went to a north side strip club. I didn’t have any spare dollars for the garters, and I slipped away home, where I could drink all night for the cost of a single beer at the girlie club. But I just went to bed.

Which is really about all I feel like doing by the end of the day on April 15. By noon today I had already worked a 65-hour week. I’ve been in close company with my co-workers here from early morning to late night for weeks, and, as much as I love them to death, I’ve had enough quality time with them.

There are other awkward things about the tax parties. Like auditors. You can identify them by their animation and their golf tans – a sharp and annoying distinction from us dazed, pallid tax zombies. Bonus annoyance points if they come to the April 15 party straight from the golf course.

These parties typically occur at a local bar, where you run the high possibility of a colleague embarrassing himself in front of a client. Or worse, a drunk client hitting on one of our staff accountants. Worse still, a staff accountant hitting on a client. Unless it goes really well, of course.

Finally, I’m a boss now. Nobody really wants to do serious drinking in front of a boss. So now I’m like the old guys who used to start the Masters with a ceremonial tee shot. I’ll take a ceremonial shot (Templeton Rye, try it sometime), and then leave the field to the youngsters.

So have a good time tonight. If you see me out, I’ll be at dinner with my wife (I think I’m still married). I’ll be the one snoring.

(UPDATE) The Greatest Tax Day Tradition: (Rumored) Free Stuff!

It’s here people. April 15th. It’s great for a lot reasons: A) you (or your grateful significant other) get to say good bye to that nasty-ass beard B) you can get some rest and C) all around, your life ceases sucking (or sucking less). And along with marching against all things taxation (regardless of representation) it has become tradition for giveaways.

Buzz around the Internet for a nanosecond and you’d think the entire universe was being given away.


We already told you about the Blizzardmobile setting up shop in DC but for those of you not in the Nation’s Capital, here’s a quick rundown of some other freebies that me be closer to you:

Starbucks – Bring in a reusable cup and get free coffee.

Dunkin’ Donuts – Although we can’t find anything on their website, DD is known to give you a free donut with a purchase of the best (chain) coffee on Earth.

Subway – Again, rumor has it that Casa de Jared is handing out free cookies today. Nothing on the site, however.

PF Changs – If you didn’t get enough Chinese cuisine during busy season, head over to PFC’s to get 15% off your tab.

McDonalds – Once again, supposedly you can purchase a Big Mac and get a second for $0.01. If you aren’t able to handle two (we don’t recommend one but whatevs), just give it to a homeless person.

Boston Market – Buy one plate and get one free with this coupon.

If you’ve got news of more freebies, or just (rumored giveaways) let us know or discuss.

UPDATE: Looks at least one Subway is balking. From a Salzberg Soldier:

The Subway in Raleigh right outside of Deloitte has advertised buy-one get-one subs on tax day for the last week or so…but when we went in and ordered, they told us they had decided not to do it. They also mentioned that they took down the posters they had in the windows because “they didn’t make sense”. No bargains at Subway today.

Quote of the Day: Dear Abby Should Not Be Giving Advice About Taxes | 04.14.10

Dear Ms. Van Buren:

Your response to “Phobic” about her boyfriend’s tax returns contained a significant error. You characterized enrolled agents as “the only tax specialists licensed to practice before the IRS,” which is not true. The fact is, certified public accountants and attorneys are federally authorized to represent clients before the IRS.


The CPA has long been synonymous with reliable, objective tax preparation and ranks as the preferred tax professional among millions of U.S. taxpayers.

On behalf of the many CPAs who prepare tax returns every year, we would be appreciative if you would print a correction in your column.

~ Tom Ochsenschlager, Vice President – Taxation American Institute of Certified Public Accountants, in response to this.

TurboTax’s Bob Meighan: There’s No Sense in Panicking About the April 15th Deadline

With a little more than just 24 hours to go until the end of the traditional filing season for 2010, some taxpayers might be freaking out. To help prevent this we got the chance to speak with Bob Meighan, TurboTax VP and CPA yesterday morning about what to do with just a few short hours away from the deadline, what taxpayers have been struggling with this filing season and if he had any special advice for a certain customer:

And that extension form you need? It’s Form 4868. Even if your preparer got nabbed in Operation Brass Tax, just make it easy on yourself and file the extension (we did). You’ll feel better.

Would Sarah Palin Consider Helping Pamela Anderson with Her Tax Problem?

When celebrities have tax trouble, the majority of reporting out there feels like schadenfreude. Being of the more helpful mindset (especially when it comes to America’s beloved rich [or not so much] and famous) we try to provide solutions for those celebs down on their luck.

In celeb-tax-trouble du jour, Pam Anderson has been named to the California’s Franchise Tax Board Top 250 Tax Delinquents. She owes the people of California nearly $500k.


Someone equally as famous but without the financial difficulties is former VP candidate Sarah Palin.

We’re not suggesting that SP spread the wealth around but just to help out a real American like herself. What’s $500k between two women that share the uncanny ability to seduce the American psyche? They’re a natural team – both have rabid fans; Pam is currently on a reality show, Sarah’s is in the works. Sarah Palin hates taxes; if Pam didn’t before, she certainly does now.

Sure, SP kills animals while Pam stumps for them but those a small issue like digesting animal flesh or wearing fur can surely be set aside for the good of the country. Plus, it would make for a great Sarah stump speech come 2012.

Pamela Anderson Owes $493,000 in Back Taxes [AP]
See also:
California’s Top 250 Tax Deadbeats [TaxProf]
What Do Pamela Anderson And Tim Geithner Have In Common? [DB]

IRS Agent Who Threw Temper Tantrum Faces 55 Years for Threatening Treasury Agents, Filing False Returns

Last summer we told you about an IRS agent who threw a temper tantrum after threatening to kill Treasury Agents they showed up to search his home.

Just briefly refresh, after the agents stopped Albert Bront from going back into his house, where he kept three loaded guns (no doubt they were Remingtons), he was shoved into the back of the car where “he kicked the front seat of the law enforcement vehicle and pounded the door with his elbow.”


Besides the small matter of telling Federal Agents that ‘I’m Going to Kill All of You!’ Bront has also been indicted for filing false returns and helping others file false tax returns. Web CPA reports that he is convicted on all 16 counts in the indictment he faces 55 years in adult prison.

While we are firmly against the violence, we fully support seat kicking, foot stomping, pouting and all around conniption fits for those that feel wronged by the IRS. At the very least, it’s more effective than marching on the Internet.

IRS Agent Indicted for Threatening Investigators [Web CPA]

IRS Checks Sole Proprietorships Off Its “To Audit” List

This morning we shared some best practices on how to keep your ass out of hot water should an IRS audit befall you. The concern is that the government spending is out of control, huge deficits yada yada yada, the IRS will be knocking on more doors.


For the most part, everyone has been covered – large corporations, millionaires, possibly temptresses, the list is thorough.

Well, now it appears that the last entity type standing, the sole proprietorship will join the rest as an IRS target. IRS-criticizer-in-chief J. Russell George’s TIGTA issued another report but this time it cites sole proprietorships for “$68 billion of the $345 billion tax gap in 2001,” in underreported income. Web CPA reports George’s thoughts:

“Sole proprietors who underreport their income can create an unfair burden on honest taxpayers and diminish the public’s respect for the tax system,” said TIGTA Inspector General J. Russell George in a statement. “It is imperative that the IRS institutes policies to address this problem.”

How’s this for addressing a problem? The Internal Revenue Code, you my have heard, is mind-numbingly complex. Sole proprietorships, out of all the entity structures, are the least equipped to ensure compliance with the tax law. Auditing more of them will not result in increased compliance but rather enormous costs to their businesses. As for “diminish the public’s respect for the tax system,” didn’t that ship sail ages ago?

IRS to Step up Audits of Sole Proprietors [Web CPA]

One Firm’s Tax Season Tradition Ignores the “Beards Are Kept Trim” Mantra

All firms realize that tax season is a grind and put up with various silly/downright stupid traditions for the sake of employees’ morale. There’s no work/life balance to speak so concessions are made. In anticipation for the annual tradition that is tax professionals raging on April 15th, FINS has compiled a few interesting traditions that are carried on by various firms. The idea, however, that men are walking around the office sporting the Grizzly Adams defies comprehension.


For you purists of the white collar world, facial hair makes you ill. The sight of five o’clock shadow is downright repulsive and anyone that isn’t shaving at least daily (except for the flesh-colored beard types) will not be dealt with a swift manner.

Unless of course you work at Traphagen & Traphagen CPAs LLC where the tradition of tax season beards goes back 40 years. At that length, it may precede any NHL playoff tradition of funky facial hair, “”At the close of business, they’ll troop into a conference room and together shave the beards they’ve been growing since the end of January.”

As you might expect there are client requests to send the remains to the IRS but unfortunately the partners don’t honor these requests.

Thank God It’s Over — Let’s Party! [FINS]

In Case You Forgot, Today Is National Tax Freedom Day

That means, theoretically, the rest of the money you earn this year is yours. We understand that tea partiers too lazy to leave the house will still be marching virtually.


What’s far more interesting is Tax Freedom Day by state which shows that you’re basically getting screwed if you live near New York City or Washington, DC. Of course if you’re hung up on this whole Tax Freedom Day thing, then your ideal state is Alaska which seems about right.

Image source: Tax Foundation

Panic Isn’t Necessary if Your Tax Preparer Got Swept Up in “Operation Brass Tax”

With less than a week until April 15th, it’s safe to assume that some people are finally getting a tad anxious about the upcoming deadline. If you live in New York and happen to be one of these procrastinators, it may be wise to check with your tax professional, not only because they hate it when you show up on the 13th – 15th with nary a clue about what you earned in 2009 but also because if you’re really unlucky, your tax pro instead was just total shiester and got caught up in “Operation Brass Tax.”


First off, we’ll just say that we’re not sure who at the U.S. Attorney’s Office for the Southern District of New York or the IRS’s Criminal Investigation Division was given the modest charge of naming this particular operation but it obviously sucks. We’re not expecting you have an imagination like JK Rowling or anything but guys, c’mon.

But enough with trivial matters, the main concern is that there are many New Yorkers that are completely going batshit crazy because A) they recently found out that their tax preparer was a robbing them blind and B) they have no idea how they are going to get their tax return filed in less than a week without help because reading the instructions is NOT. AN. OPTION.

Twenty-six phony tax experts in Manhattan and the Bronx have been charged by the SDNY/IRS for pulling a smorgasbord of scams including, “stolen identities of children to falsely claim them as dependents on clients’ returns; claiming “business losses” from fictitious businesses; using stolen identities, including Social Security numbers, of deceased individuals to list as the ‘taxpayers’ on fraudulent returns, and taking the resulting refunds themselves.”

All this chicanery has U.S. Attorney Preet Bharara upset because these tax professionals are supposed to be the good guys!

U.S. Attorney Preet Bharara and IRS Special Agent-in-Charge Patricia Haynes unsealed charges Thursday against the tax preparers. Sixteen were in custody, four had been previously charged and face new charges, and six remain at large. “Professional tax preparers are supposed to be gatekeepers, not facilitators of fraud,” said Bharara in a statement.

Some might argue that this is just another reason why regulating tax preparers is the best idea the IRS has ever had. Of course then you remember that these regulations will probably drive these tax prep lemonade stands underground anyway.

While that’s another matter entirely, there’s no cause for concern. There’s plenty of tax gurus in New York like the guy who got mixed reviews on Craigslist. If venturing to Queens isn’t a solution then you can always, you know, file the extension.

26 NYC Tax Preparers Charged with Tax Fraud [Web CPA]
More New York Tax Trouble:
Investigation Reveals that 30% of Tax Preparers in NYC Lied About Rapid Refunds