Accounting News Roundup: Joint Taxation Committee Explains IRS Penalties Under Health Care Bill; Madoff Owes New York $1 Mil in Taxes; ACORN Shutting Down | 03.23.10
• What Happens If You Don’t Buy Health Insurance under Health Care Reform Bill? [Tax Policy Blog]
Believe it or not, there is misinformation out there about the health care reform bill. No, it’s true!
One big fear is the IRS getting all up in your shit for not buying health insurance. According to some, heavily armed IRS agents will kick down your door if you haven’t made the necessary arrangements for coverage, take your children away and kick your dog as they exit your house with your money and your freedom. Fortunately, Tax Policy blog has presented the Joint Taxation Committee’s explanation of what would really happen if you decided to skip on the coverage.
The penalty applies to any period the individual does not maintain minimum essential coverage and is determined monthly. The penalty is assessed through the Code and accounted for as an additional amount of Federal tax owed. However, it is not subject to the enforcement provisions of subtitle F of the Code. The use of liens and seizures otherwise authorized for collection of taxes does not apply to the collection of this penalty. Non-compliance with the personal responsibility requirement to have health coverage is not subject to criminal or civil penalties under the Code and interest does not accrue for failure to pay such assessments in a timely manner.
• NY is newest Madoff victim [NYP]
Apparently Berns didn’t sort out all of his affairs before taking his permanent vacation to the Carolinas. He owes nearly $1 million taxes to New York State according to the Department of Tax and Finance’s list of largest delinquents.
• Acorn to Shut All Its Offices by April 1 [NYT]
After getting dropped from the VITA list by the IRS and getting snubbed by the Census Bureau, Glenn Beck’s favorite NPO is closing up shop on April Fool’s Day. Beck will certainly be on hand to see the headquarters burned to the ground to assure that the American people aren’t being duped again.
ACORN Stonewalled on VITA Funds but Questions Remain
Yesterday the IRS released the list of recipients of $8 million in matching grants for the Volunteer Income Tax Assistance program. Many of you participated in this fine program back when you were focused on developing a drinking problem, which may explain the high error rate but that’s neither here nor there.
Of the 360 applications submitted for funds, one notable organization that was DEEE-NIED was ACORN.
Despite the grave dancing that is likely going on in certain corners of the media, is anyone asking the important questions here? Including but certainly not limited to:
• Who will real sex workers depend on for tax advice?
• What non-profit organization will the two “investigators” entrap next?
• Will Glenn Beck finally calm down? He has appendicitis for crissakes.
Questions worth noting. If you have answers to any of these, kindly enlighten us in the comments (without suffering from an aneurysm).
IRS Leaves ACORN Off VITA Grant List [Web CPA]
IRS Awards $8 Million in Grants to 147 Organizations for Tax Prep Assistance — $0 to ACORN [TaxProf Blog]
No IRS VITA “Seed” Money for ACORN [Tick Marks]