October 26, 2021

Ah-nuld

BREAKING: California Manages to Approve a Budget Before Electing a New Governor

Which is significant because A) neither of the current candidates has cyborg abilities that would allow them to go back in time to fix anything and B) some people were getting antsy:

“You’ve got to get things moving. You’ve got to patch something together to keep operations going,” said John Moorlach, an Orange County supervisor.

Having a state budget in law is “extraordinarily important,” added Mayor Chuck Reed of San Jose, California’s third-largest city.

Yeah, after 100 days, you figure you should slap something together. A sorry-ass $87.5 billion budget for one of the largest economies on EARTH is better than no budget at all, amiright?

California budget approved 100 days late [Reuters]

California’s Budget Crisis Streak Continues

“Without a budget in place that addresses our $19 billion budget deficit, every day of delay brings California closer to a fiscal meltdown,”

~ California Governor Arnold Schwarzenegger probably wouldn’t mind having the ability to go back in time and try to do something. Anything.

Arnold is Probably Thinking That This Is One of Those Situations Where a Cyborg from the Future Would Have Come in Handy

Thumbnail image for arnold.jpgIt just doesn’t seem possible that his Govinatorness would have a tax lien slapped on him because A) he’s married to a Kennedy and B) his annual Kindergarten Cop royalties alone should be enough to cover $79k.
Despite those two advantages, the IRS did file a lien in May for $79,064 that relates to 2004 and 2005, according to TMZ.


The claim by the Governor’s minions is about what you would expect them to come up with: a ‘paperwork snafu.’ In all fairness, the code section cited on the lien is 6721 which, as Tax Girl notes, is informational in nature:

Section 6721 deals with information returns, not taxes owed…Information returns would include such ordinary forms W-2, W-3, 1099, 1096, etc. If that’s the case, it could likely be related to household employee payroll taxes (household employees would include workers such as housekeepers and nannies). However, Schwarzenegger’s office is strongly hinting at the fact that it’s more removed than that – but then, they are politicians.

The other possibility that’s being floated around is that Ahnuld is “listed as a ‘responsible person’ by a business in which he is involved, possibly with a group of partners, and that the IRS might file liens against all of the business’s designated agents,” and thus, “might explain why Schwarzenegger may not have been aware a lien had been filed.”
So, as usual, no one really knows anything for sure and nobody is talking. The man has been a failed state to run people, he can’t be expected to be on top of everything.
Schwarzenegger’s Office Blames $79,000 Tax Lien on ‘Paperwork’ Snafu [Mercury News]
The Governator Blames Tax Lien On “Snafu” [Tax Girl]
See also: IRS Files $79k Tax Lien Against Gov. Schwarzenegger [TaxProf Blog]

Arnie Signs 150-Hour Rule for California

arnold.jpgNo one panic, if you get licensed before 2014, you’re grandfathered in as substantially equivalent. So if you feel like procrastinating, don’t let us stop you but maybe keep the date in mind.
In addition to the new credit hour requirements, Ah-nuld also signed bills requiring mandatory peer review for CPA firms starting next year and requiring non-active CPAs to disclose their status. We thought those were both standard operating procedure but a couple more laws won’t hurt anything.
If you can’t bear the thought of 25-30 extra credit hours in college, move to Colorado, Puerto Rico, or the Virgin Islands as they’re the holdouts on the 150 credit-hour requirement.
California Adopts 150-Hour Rule [Web CPA]