Wednesday, June 27, 2012
WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’ – WEDNESDAY EDITION
* The Wall Street Journal’ WEEK-END INVESTOR column tells us that “IRA Rules Get Trickier”.
“The government lets millions of dollars in tax penalties on IRAs go uncollected each year—$286 million in 2006 and 2007 alone for missed withdrawals and contributions that break the rules. The reasons range from bureaucratic hurdles to tax forms that don't provide enough information, according to a report by the Treasury Inspector General for Tax Administration, the federal tax watchdog.”
What’s in store as the IRS begins to investigate this potential money-maker –
“The possibilities include additional paperwork that IRA owners would have to file with their tax returns and stepped-up audits, mainly matching up distribution reports from IRA custodians to individuals' tax returns.”
* TAXPRO TODAY reports “Congress Plans Hearing on Reforming Capital Gains Taxes”.
“House Ways and Means Committee chairman Dave Camp, R-Mich., and Senate Finance Committee chairman Max Baucus, D-Mont., said Friday that the committees will hold a joint hearing June 28 to review the tax treatment of capital gains in the context of comprehensive tax reform. Both committees have been holding a series of hearings on tax reform since last year, in most cases separately. They occasionally hold a joint hearing on matters of wide interest.”
I expect Saturday’s BUZZ installment will include an item on the hearing’s testimony.
* Bill Perez talks about the FBAR (not to be confused with FUBAR, which is the official acronym for the Tax Code) filing deadline in “Foreign Bank Account Reports Due June 30th” at ABOUT.COM-TAX PLANNING: US.
Click here for a FBAR “Decision Tree” flowchart.
* This week’s “Monday Map” at the Tax Foundation’s TAX POLICY BLOG is “State Tax Collections Change, 2000-2010” – “a map showing the changes in tax collections per capita”.
* The JOURNAL OF ACCOUNTANCY explains “IRS Suspends Issuing ITINs Without Original Documentation”.
“Beginning June 22, 2012, and continuing until the IRS issues new rules (which it says it will do by the beginning of the 2013 filing season), the IRS will not issue individual taxpayer identification numbers (ITINs) unless the applicants provide original documents such as passports or birth certificates, or certified copies of those documents from the issuing agencies (IR-2012-62). Previously, ITINs could be issued based on notarized copies of the required documents. In addition, ITINs will not be issued based on applications submitted through certified acceptance agents unless they attach original documentation or copies of original documents certified by the issuing agency.”
I have never requested an ITIN for a client, and, as I do not accept new clients, do not see this as being an issue for me. It is just FYI.
* Kelly Phillips Erb, FORBES.COM’s Taxgirl, has resurrected her weekly Getting To Know You Tuesday series.
“In the series, I ask tax pros a series of questions, some serious, some not so serious. It’s a great way to get to know tax pros around the world and discover that we are (allegedly) human and we do (occasionally) leave the office.”
This Tuesday she interviewed “Brad Garland”.
* Tax pros – did you hear about my special summer offer? A great savings! Click here.
THE FINAL WORD –
Tax cheat Chuck Rangel is running for re-election again.
While when it comes to the idiots in Congress I tend to support a general policy of GRIP (Get Rid of Incumbent Politicians) – because these idiots have done nothing to justify letting them keep their jobs. However in the case of this crook, a proven tax cheat, it is essential that we send a message by sending him packing.
The idiots in Congress should have sent him packing when it was determined he was guilty - instead of just making him stand in front of the class while the teacher announced that he was bad.