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John Kerry Saves $500k in Taxes By Dropping Anchor in Rhode Island

Posted on by Caleb Newquist

Don’t any of you get the idea that John Kerry is docking his new $7 million yacht in Rhode Island to navigate around Massachusetts’ sales tax and the annual excise tax. That would be, in a word, ludicrous.


“Kerry spokesman David Wade said Friday the boat is being kept at Newport Shipyard not to evade taxes, but ‘for long-term maintenance, upkeep and charter purposes.’ ”

And Rhode Island is the Ocean State, so it makes perfect sense. “Isabel” is a 76′ beaut that has “two cabins, a pilot house fitted with a wet bar and cold wine storage.” A pretty swell ride.

It’s difficult to say why the Mass. Senator wouldn’t park the vessel near home base but we’d be willing to hear some theories.

Mass. Sen. Kerry docks yacht in RI, saving $500K [AP]
Sen. John Kerry skips town on sails tax [Boston Herald via TaxProf]

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The DOJ Is Not Waiting to Weed Out Sketchy Tax Preparers

Slimy.jpgEarlier this week we learned that the hammer will be coming down on small tax prep shops.
Despite the news of the fresh measures, that didn’t prevent the DOJ from getting some of the riffraff off the streets this week.
Web CPA:

On the heels of the IRS’s plan to begin regulating tax preparers, the Justice Department announced that it has filed six lawsuits this week to stop preparers charged with generating fraudulent income tax returns.
The cases included five civil injunction lawsuits in Detroit, Cincinnati and Chicago filed against several individuals and their tax preparation services. However, the trend didn’t start this week. In December, the government filed a civil injunction suit against 12 individuals and entities in Providence, R.I.

Long/short: thousands of tax returns were falsified by throwing all kinds of deductions on the returns that couldn’t be substantiated including cash donated to The Human Fund and bogus business expenses.
As Joe noted on Wednesday, it’s difficult to reason that even after the new requirements are in place, some of the more dodgy tax preparers won’t slip through the cracks. Consumers dumbfounded by our mind-job of a tax code will continue to going to shiesty 1040 jockeys that will promise low fees and bigger refunds. Ultimately they’ll pay more in the long run.
Justice Department Cracks Down on Tax Preparers [Web CPA]