* TAXGIRL Kelly
Phillips Erb offers “A Simple Solution for Reducing Taxpayer Fraud” at
FORBES.COM.
Her solution echoes
what I have been saying for years -
“So here’s my great advice: eliminate refundable tax credits. So
simple. So easy. And I am sure that it would reduce tax fraud.”
Kelly observes the
obvious –
“It’s clear that refundable tax credits are
synonymous with increased instances of taxpayer fraud.”
As for the number
one source of tax fraud, Kelly points out –
“Top of the list is, of course, the EITC,
which has been a constant source of tax fraud. How much fraud? The IRS believes
that between 23 and 28% of EITC claims are paid in error. The result is
estimated fraudulent payouts each year of more than $10 billion.”
I especially like
Kelly’s bottom line -
“I happen to believe that, as a taxpayer, you
need some skin in the game. If you’re filing a return simply to get money back
from the government that you didn’t pay in, I don’t know if that’s the best use
of our country’s limited resources (there are other, better ways for those
folks to receive benefits and assistance).”
* Tom Herman
answers a question on “Claiming Losses on Worthless Stock” at his Ask Dow Jones
blog at the WALL STREET JOURNAL.
He provides an
excellent first step -
“Start by asking your broker when the company
went bust and whether the shares you own are totally worthless.”
Sometimes, as I
have seen lately, if the total worthlessness is questionable the brokerage will
purchase the stock for one penny so as to be able to include it on your
year-end 1099-B.
* So much for $5.00
a gallon. Kay Bell reports “Memorial Day Gasoline Prices Down, But State Gas Taxes Were Up a Bit in April” in her annual
Memorial Day week-end post on gas taxes at DON’T MESS WITH TAXES.
The good news is –
“The average price of gas is down 14 cents a
gallon from this time last year, and a quarter since the end of March.”
Kay provides a list
of the 10 most expensive states for gas tax.
It is a pleasure not to see NJ on top of such a list for a change.
* Trish
McIntire talks about “Moving Expenses” at OUR TAXING TIMES.
* My ears were ringing
yesterday morning. It appears that
MISSOURI TAXGUY Bruce and friends mentioned me when talking about
grandfathering of longtime preparers for the RTRP competency test.
Thanks to Jason
Dinesen for suggesting that I have forgotten more about 1040s than he knows.
The gang also
discusses the differences between an Enrolled Agent, a CPA, a tax lawyer, and a
plain old RTRP and when one might need each of these.
Click here to hear
the entire discussion
Unfortunately I do
not have either a microphone or camera to permit me to join in the fun.
This is a weekly
event usually held on Tuesday between 11am and 12 noon - so put next week’s
edition on your calendar.
TTFN
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