Tax Nerds Set Record Straight on Tax Code vs. NFL Rulebook Complexity

Posted on by Caleb Newquist

If there's one thing tax people can't stand, it's other people saying incorrect things about taxes.

I know this because I used to be a tax person who spent lots time listening to superiors correct me (and others) constantly on nuances of the code.

But, it's fine! Taxes are hard and people like showing off. It's human nature, especially for a tax nerd. I mean, c'mon, it's the only thing they've got.

Anyway, NFL commentator Cris Collinsworth said something silly the other night during the Broncos/Patriots game when he fumbled through an explanation about the excess time out rule: "The [NFL] Rulebook is like the IRS Code right now. Who knows what's all in there."

That's funny! Because the tax code is complex! Alright, it's not that funny. Collinsworth is a football guy who probably gets his tax knowledge from Al Michaels. He can't be expected to know the difference between a Section 351 transfer and Section 721 transfer, can he? No, he cannot.

The Tax Foundation, full of good natured folks to be sure, couldn't let it go, though. They methodically dismantled Collinsworth:

Word Count

NFL Rulebook: 55,000 words

Internal Revenue Code: 3.9 million words

These being federal statutes, much of the word count is internal citations, appendices, enactment clauses, and the like, but a reasonable estimate with all this stripped away is still over 2.4 million words. Add in case law, guidance, and other supplementary material needed to actually understand the tax code and you wind up with CCH's 74,000 page Standard Federal Tax Reporter. The NFL Rulebook, including tables and diagrams, runs 79 pages.

One thing is for certain: Carly Fiorina can't get either the tax code or the NFL rulebook down to three pages. Back to the TF:

People Who Know What's All In There

NFL Rulebook: "Who knows what's all in there," but officiating crews, presumably?

Internal Revenue Code: Nobody.

Adequate Explanation of What Constitues [sic] a Catch

NFL Rulebook: No.

Internal Revenue Code: No.

Oh, nice one, Tax Foundation! See? I told you they were good natured. But, yes, for the record, the IRC is more complex than the NFL rulebook. The matter is now closed.

Related Posts

Joe Francis Plans to Argue That Anything Related to Topless Girls is Deductible

Joe-Francis.jpgSome might call Joe Francis a genius. Others may call him a pig. Regardless, the IRS is calling him a scofflaw tax evader. His defense strategy will entail an elaborate slideshow that will explain that Francis is the “business of sex” and that most of what he’s doing are business expenses.
Sex is a confusing business so Francis’s defense will help the jury understand:
Get informed, after the jump

• Mr. Francis is in the business of sex
• Mr. Francis IS Girls Gone Wild
• Girls Gone Wild is Successful

See? It’s not complicated.
The defense strategy will also include pictures of celebrity guests (with some misspelled names) that were at Francis’s beachside house in Mexico where he incurred “business expenses”. Francis will also present a slide that shows himself to be akin to Hugh Hefner and thus, proving that anything to naked girls should be allowed as a deductible expense.
Open and shut as far as we’re concerned.
Jennifer Aniston For The Defense? [The Smoking Gun via TaxProf Blog]

Strip Club Owner, Sans High School Diploma, Blames His Accountant for Tax Troubles

When you own a strip club there are certain things that you understand. Things like, knowing that there is large portion of the male species that will pay women to take off their clothes regardless of the fact that sex is not happening. And while this is going on, they’ll imbibe lots of booze. And eventually, they may get hungry and with the last sliver of will power they have left, pull themselves away to pay $5.99 for a prime rib buffet. AND since there’s no windows in the place these men will stay in your strip club and spend money until you throw them out or they’ve spent every last dime. Oh, and poles are imperative.

On the other hand, there are things that strip club owners are less savvy about. One of these things may be tax compliance. Accordingly, many proprietors find a local accountant, they swap services, everyone wins.


However, every once in awhile this traditional arrangement may run awry. Kevin Moury, owner of Kittens (NSFW), is suing his accountant, Michael Walsh, for negligence in preparing his returns that resulted in “criminal charges, penalties, costs, fines, loss of income, medical expenses, loss of life’s enjoyments, emotional distress and mental anguish.”

Okay, before we continue, we have to ask – “loss of life’s enjoyments” and “medical expenses” because of a CPA? Where do we draw the line people? Next thing you know, accountants will be blamed for the collapse of the entire financial system…

Anyhoo, Moury pleaded guilty in October to “federal charges of falsifying tax returns and failing to report substantial cash income.” He spent one night in jail, got nine months of house arrest and had to pay back taxes of $88k, etc. etc.

This all came up because Moury apparently thought it was a-okay to deposit money from various revenue streams like fining dancers for tardiness or bolting early, massages for customers, and Jell-O shots (you know, the usual stuff) and then not report it as income. Obviously the IRS was not cool with this, prosecutors threatened to go after his wife and daughters (all employees at Kittens, btw) and that got him to plead guilty.

As a result of his guilty plea, Moury lost a sweet $90k/year gig as a “superintendent of environmental management” (which sounds a lot like “boss of the garbage collectors” but whatevs) and this resulted in lost future earnings of $1.3 million, allegeth the lawsuit.

Regardless, this shit ain’t fair and the accountant needs to be held responsible (his attorney the allegations or “groundless”) and Moury’s attorney isn’t shying away from the stupidity defense:

The lawsuit claims Moury’s lack of formal education — he didn’t finish high school and has a high school equivalency certificate — led him to rely on Walsh to accurately report his income and prepare his tax returns.

“Mr. Moury gave his accountant anything and everything for his business, his real estate and the salary from his job with Methuen,” Cote said. “He signed the returns, but did he looked at them? No. Is he responsible? Yes.

Strip club owner blames accountant for his tax woes [Eagle-Tribune]