Tag: Tim Geithner

For the Last Time, Only Tim Geithner Can Blame TurboTax and Get Away with It

Seriously people. We thought that the fog of confusion around this issue had been lifted. We’ll go over it again for those of you just joining us.

If you are not a well-connected bureaucrat with a fabulous coif, you are not afforded the same privileges as though who are/do.

And tax court debunks the latest attempt to draw some likeness between a regular schmo and T Geith:

We shall address briefly petitioner’s contention that the IRS granted “favorable treatment” in a case involving U.S. Secretary of the Treasury Timothy Geithner, which petitioner described as “incredibly similar” to the instant case. According to petitioner, “there should not be different, or favorable rules for the well-connected”. The record in this case does not establish any facts relating to the case to which petitioner refers involving U.S. Secretary of the Treasury Timothy Geithner. In any event, those facts would be irrelevant to our resolution of the issue presented here. Regardless of the facts and circumstances relating to the case to which petitioner refers involving U.S. Secretary of the Treasury Timothy Geithner, petitioner is required to establish on the basis of the facts and circumstances that are established by the record in his own case that there was reasonable cause for, and that he acted in good faith with respect to, the underpayment for each of his taxable years 2005 and 2006 that is attributable to his failure to report self-employment tax.

Turbo Tax

Tax Court Rejects Geithner/TurboTax Defense [TaxProf]

Accounting News Roundup: Lehman Unsecured Creditors Want Ernst & Young Docs; Court Doesn’t Allow “Geithner Defense” for Non-Geithner Taxpayer; Contenders for the Head of Deloitte UK Shape Up | 04.20.10

Lehman unsecured creditors seek probe Ernst & Young [Reuters]
The unsecured creditors of Lehman are justifiably nervous about getting anything bank in the wake of the Lehman Brothers bankruptcy. The next best plan of attack, as you might of expect is poke around E&Y to see what they’ve got laying around. Of course Ernst & Young won’t just turn over “certain documents” and make “its employees and partners submit to an oral examination” so the creditors are asking the bankruptcy court to order them to do so.


Tax Court Rejects “Geithner Defense,” Says Reliance on TurboTax Does Not Excuse Taxpayer From Penalty for Errors on Tax Return [TaxProf]
Please note for any of you that will try to pull that excuse:

“Although the Court concludes the errors in petitioners’ tax preparation were made in good faith, petitioners have not established that they behaved in a manner consistent with that of a prudent person. Before the trial petitioners stipulated that they did not consult a tax professional or visit the IRS’ Web site for instructions on filing the Schedule C.

We do not accept petitioners’ misuse of TurboTax, even if unintentional or accidental, as a defense to the penalties on the basis of the facts presented.”

Contenders shape up to replace John Connolly – Deloitte’s big hitter [Times Online]
The head spot for Deloitte in the UK will be up for grabs next year as John Connolly will step down after ten years at the helm. The Times Online reports that even though two candidates have been identified by sources, no campaigning will be allowed, “Mr Connolly conceded that the issue of succession was “in the air” but said that the firm wanted to avoid open competition between potential successors. “We don’t allow people to go around the country calling meetings and giving presentations about why they will be a great leader,” he said.”

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.

Is the Shortage of Good Accountants in the Sex Industry an Opportunity?

Okay my friends, this is a serious problem in our country that needs addressed. The vast shortage of competent, professional, tax advisors and accountants for escort service businesses, brothels, and your run-of-the-mill houses of ill repute can go on no longer. If not for the business opportunity, then for the good of your fellow Americans and maybe your state’s dire fiscal situation.


Today we learned that the one of the proprietors of Companions, “a call-out escort service” in Salt Lake City that was convicted of one count of tax evasion. Jodi Hoskins and her husband Roy were both convicted of dodging taxes (he in May 2009) for the year 2002. They managed to underreport their gross receipts by $1,204,354 which resulted in evaded taxes of $485k-ish. As you can tell, this is a bit of a problem. And with all challenges/problems/giant pains in the ass, therein lies an opportunity.

Our position is that these businesses simply cannot go on without more accountants and tax professionals stepping up to help these pillars of the business community run their whorehouses better. This means you, GC readers. Your knowledge of the double-entry accounting, inventory, derivatives, and payroll will be invaluable for these entrepreneurs and their employees.

Plus! If more of these businesses are in compliance with state and federal taxes, that’s one more step to states becoming fiscally solvent AND Tim Geithner can give the cash printing machine break. Everyone wins!

Escort Service Operator Convicted of Tax Evasion [Web CPA]
Companions Website [Warning: NSFW]

Let’s Try Out the White House’s Tax Savings Tool

After yesterday’s words of wisdom from Joe Biden on your taxes, we stumbled across the “tax savings tool” that’s so easy a caveman Joe Biden can do it.

We actually do believe the VPOTUS when he says it’s easy because he made the announcement yesterday with two men who aren’t exactly known to be tax mavens: IRS Commish Doug “I find the tax code complex” Shulman and Tim “I think I’ll try using TaxCut this year” Geithner.

Try your hand this thing and make up your own mind, after the jump.

Our feeling that it’s like tax planning a step or two above what Fisher-Price might put out. Which, for the majority of the American People, might still be tricky.

White House Unveils Online Tax Savings Tool [Web CPA]

Is Tim Geithner a Closet IFRS Supporter?

Tim Geithner has inadvertently given his endorsement to standardized financial regulation around the globe, so is he also giving the adoption of IFRS in the US his approval?

Possibly, since he told ABC that “he wasn’t worried that tighter financial regulation would put U.S. banks at an international disadvantage. ‘I’m very confident we can make sure that we are working very closely to raise global standards around the world so we have a level playing field,’ Geithner said.” His motivations are only slightly suspect. Why?

Under IFRS, assets are overstated as derivatives are measured in gross exposure, as opposed to GAAP which concerns itself with net value. More magic financial reporting; of course Geithner would want to see banks magically healed by a change in accounting. If we’re going to do it, let’s also restate years 1999 – 2009 so we can compare at least.


Incredible what a slight adjustment can do (See also: page 19 of the Deutsche Bank report “Financial Transparency” – bwhahaha).

Speaking to the G7 finance ministers in Iqaluit, Canada this weekend, Geithner reiterated his commitment to globalization, accounting magic, and the heavy hand of regulation.

“We all share a deep commitment to try to move forward and reach agreement on a strong, comprehensive set of financial reforms on the timetable we all committed to last September,” he said at a closing press conference following a meeting of Group of Seven finance chiefs.

“That means agreement on … a new set of capital requirements for large global institutions by the end of this year,” he added, playing down the possibility that the Obama administration might be headed in a different direction from other governments.

TG is talking about pacts made with winners like Japan’s Shoichi Nakagawa, who blamed his “drunken behavior” on cold medicine. Sort of like Beavis blaming his tax problems on TurboTax.

Timmy is also somehow convinced that the United States will never lose its AAA rating but he forgets that the MBSs that the Fed is buying were also AAA once upon a time too. He also seems to have forgotten about our massive deficit.

At least he remembered to push the globalization agenda he’s been blabbering about all this time.

IRS Sticks It to Amateur Tax Preparers

Thumbnail image for shulman.jpgAny tax preparers out there that got their stripes by virtue of an 8 hour course in the basement of a church will have to start hitting the books. Today, the IRS announced that it is putting a stop to all the amateur 1040 jockeys out there by issuing new requirements for all paid tax preparers.

The new requirements came after complaints from taxpayer rights’ groups who wanted stronger oversight over the industry. Apparently there are too many “tax professionals” that can’t tell the difference between a W-2 and a sack of doorknobs.

WSJ:

[S]tarting in 2011, all paid tax preparers will have to register with the IRS and include a unique identification number on any returns they prepare. Preparers will be given three years to pass a competency exam in either individual or small business taxation.

Attorneys, certified public accountants and enrolled agents will not be required to pass the competency tests. They will remain subject to the requirements of their respective licensing bodies.

But the exams and new annual, continuing education requirements will impact likely hundreds of thousands of preparers, from employees of chain preparation firms like H&R Block Inc. and Jackson Hewitt Tax Service Inc. to mom-and-pop storefronts that offer tax preparation as one of several services.

Three years to pass an exam? Even the dimmest of CPA Exam candidates manage to finish in 18 months. Also, we’re curious as to what diabolical plot the H&R Blocks and Jackson Hewitts of the world will devise in order to speed their professionals into compliance.

Regardless of the shortfalls, Doug “Don’t expect me to apologize” Shulman said that the new requirements were ‘long overdue’. He also said that the Service will be forming a task force to look into determining the accuracy of tax prep software for possible future standards over that industry.

One thing is for sure, somewhere Doug’s boss is asking his friends if they know any good CPAs.

IRS to Boost Oversight of Paid Tax Preparers [WSJ]

Review Comments | 12.21.09

Thumbnail image for Thumbnail image for geithner-tim.jpg• Christmas Gifts for that Special Tax Person – A possible gift for that Tim Geithner groupie in your life. [TaxProf Blog]
• GM Recruits Microsoft’s Liddell as New Finance Chief – Apparently GM’s finance department had some Deliverance thing going on. [Bloomberg]
• Top 50 Blogs for Accountants – There are some familiar names on this list, including GC. Thanks! [The Biz-Learner]
• Rajaratnam, Chiesi Plead Not Guilty – Doing what’s best for investors is not a crime. [WSJ]
• Crazy Eddie inductee talks about walls of false integrity – Sam Antar = Hall of Famer [Con Artist Hall of Infamy]

Preliminary Analytics | 12.09.09

Tim_geithner.jpg• Geithner Said to Be Seeking TARP Extension Until Next October – Timmay is expected to scribe a letter to Congress letting them know about the little extension. [Bloomberg]
• Standard Chartered Sees No ‘Material’ Impairments in Dubai – Let’s remember this for future reference. [WSJ]
• Lessons Lost – Gary Weiss links to GC in his remembrance of Enron. Does anyone else remember Enron? [Portfolio]
• Obama’s Stimulus II – BO wants to help small business by letting them “eliminate capital gains taxes on the sale of small firms, allow them to continue to expense capital investment, and give them tax breaks for hiring new workers.” Sounds nice but Howard Gleckman says, “It’s a bit like throwing a drowning man a 64-inch flat panel TV. He might love to have one, but not right now.” [Tax Policy Center]
• U.S. SEC Sues to Freeze Assets Of ‘Ponzi Scheme’ – Rockford Funding Group LLC, come on down! [DealBook]

Review Comments | 07.24.09

geithner-tim-4.jpg• Geithner urges end to ‘dumb regulation’ – “Tim Geithner, Treasury secretary, said there was “a lot of dumb regulation in our country” and urged lawmakers to act quickly in spite of resistance from the financial industry and other regulators to the administration’s plan.” [FT.com]
• California Senate Approves Budget Plan – “The California Senate early Friday approved a plan to close a $26 billion budget shortfall through steep spending cuts and a medley of one-time solutions and accounting moves.” Creative accounting, Cali? FTW! [WSJ]
• Buffett: I’m keeping my Goldman Sachs warrants – But thanks for asking. [Reuters]
• Madoff Trustee Battles Israeli Charity Over $4.7 Mln – “A charity for homeless and runaway Israeli children that lost money in Bernard Madoff’s fraud told a U.S. judge that the trustee liquidating the con man’s business wrongfully rejected its $4.72 million claim in the case.” [Bloomberg]