Highlights from some of our favorite tax bloggers this week.
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- Taxable Talk: Word to the Wise Dept: “How Not to Commit Tax Evasion” imagines how even good ideas, such as buying diabetes-test supplies wholesale then selling them to distribution companies, may mean big money but they don’t necessarily, or easily, translate into keeping after-tax income the same as pre-tax income. No matter how many bank accounts one opens.
- Due Diligence: In this week’s round-up: “Banks Failed To Honor Mortgage Settlement Deal (a foreclosure fraud post)”; “Defense Contractor Whistleblower Gets $1.8 Award”; “Buy American & Chinese Steel (a whistleblower post)”; and, in a less litigious note, “Due Diligence Earns Blogging Award From TaxConnections.”
- Drake Software blog: A look at the recent delay in major provision of the Affordable Care Act -- so don’t break that ankle just yet.
- Tax, Society & Culture: How the “ongoing congressional push for tax reform continues to focus on tax breaks,” and the “new twist”of breakmakers Baucus and Hatch asking for a “pardon list” of tax benefits worth sparing. Well and good, but “two breaks that will appear nowhere on any pardon list are tax-free corporate reorganizations and international tax treaties.” Is this in fact encouraging, or just more Capitol Hill smoke and mirrors? Includes a cute reference to Keyser Söze, and if you haven’t seen Usual Suspects we’ll say no more.
- A Taxing Matter: How a recent study of income and taxes reported in financial filing statements for 2008-2010 (“conducted because proponents of lowering the U.S. corporate income tax rate commonly point to evidence that the U.S. statutory corporate tax rate of 35 percent, as well as its average effective tax rate, which equals the amount of income tax corporations pay divided by their pretax income, are high relative to other countries”) (pause for breath) revealed that more than half of all large U.S.-controlled corporations “reported no federal tax liability in at least one year between 1998 and 2005.” There’s comfort in common rumor being true, we suppose, though maybe not for the “ordinary Americans (who) continue to suffer the impact of the recession.”
- Our Taxing Times: Five will get you 10 that there’s a rumor going around gambling losses will no longer being deductible. That’s news to this blogger (“What my clients have been told was that the ability to deduct gambling losses was repealed on July 1, 2013. Actually one was very specific that he had been told that the new law went into effect on July 1st and was retroactive to the first of 2013...”). Keep us posted -- about the only machine we ever won on in Vegas was the bill changer.
In the know
- Fast Forward Academy blog: EAs should arm themselves for representing ever-more small businesses in audits and other tax matters -- especially in the wake of the House Chair recently asking the acting IRS commissioner how small businesses are selected for audits.
- Rubin on Tax: Untangling a spaghetti bowl of a question on tax liens, tenancy by entities and the federal claims statute combine to produce fiduciary liability that resulted in personal liability to the executors of the estate of a surviving spouse.
- Brian’s Financial and Tax Musings: A look at the pluses (and more and still more pluses) of a free initial consultation, and what to ask a potential client to bring and come prepared to yak about.
LLCs and DFBs
- TaxMama: A question regarding a small Pakistan-based BTB software firm that wants to register an LLC in either Wyoming or Delaware. No physical presence in any American state (square, rectangular or otherwise shaped) nor will the company be hiring any regular employees. A look at what’s involved.
- The Wandering Tax Pro: DFBs, or “damned fool bureaucrats” responsible for several clients having recently e-mailed the blogger about late refunds “from manually, but timely, filed NJ-1040s.” We hear the same problem is widespread in NYS, too.