Monday, July 11, 2016
WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’
* TAX PROF Paul Caron tells us about the Government Accountability Office report “Refundable Tax Credits: Comprehensive Compliance Strategy and Expanded Use of Data Could Strengthen IRS's Efforts to Address Noncompliance” (GAO- 16-475) in “GAO: IRS's 30% Error Rate With Refundable Tax Credits Results In $30 Billion In Annual Erroneous Payments”.
Paul quotes the report as saying (highlight are mine) –
“Eligibility rules for refundable tax credits (RTCs) contribute to compliance burden for taxpayers and administrative costs for the Internal Revenue Service (IRS). These rules are often complex because they must address complicated family relationships and residency arrangements to determine who is a qualifying child. Compliance with the rules is also difficult for IRS to verify due to the lack of available third party data. The relatively high overclaim error rates for these credits (as shown below) are a result, in part, of this complexity. The average dollar amounts overclaimed per year for 2009 to 2011, the most recent years available, are $18.1 billion for the EITC, $6.4 billion for the CTC/ACTC, and $5.0 billion for the AOTC.”
The obvious solution to this problem – NO REFUNDABLE CREDITS!
* Hey neighbors in Northeast PA – have you seen my new blog WHAT’S THE BUZZ yet? I provide links to what’s a happenin’ in the Lake Region and surrounding areas - theatre, entertainment, community activities, fund-raising events, and a lot more.
* Over at DINESEN TAX TIMES Jason Dinesen gave us a present for 4th of July – “From the Archives: Rare Home Office Deduction Win in Tax Court” – which discusses de minimis personal usage of office space.
* And another blast from the past from Jason – he answers a question that has never been asked of me in “From the Archives: Do Extreme Couponers Pay Tax?”.
The answer –
“There are no income tax implications to using coupons, whether you use one or two coupons or you go extreme and use hundreds of coupons at one time. Coupons reduce your basis in the things you purchase.”
* Jean Murray of ABOUT.COM warns “Beware of Fake Employer ID Application Sites”.
There is absolutely no reason to pay a service to get a federal Employer Identification Number. You can very easily do it yourself – or have your tax professional do it for you.
* Jamaal Solomon, aka Stikks of STIKKS TALKS TAXES, has been running a post series on a list of the “Top 10 Taxpayer Bill of Rights”. He began with “#10 The Right to a Fair and Just Tax System” and has so far worked his way to “#3 The Right to Pay No More than the Correct Amount of Tax”
* Pardon me while I take a break for some horn-tootin’. Click here to check out my library of books, reports, and newsletters with federal and state tax planning and preparation advice, information, and resources.
* The IRS is providing “Tax Relief for Victims of Severe Storms, Flooding, Landslides and Mudslides in West Virginia”.
* FYI - Beginning June 30 and running through August 30, the Alabama Department of Revenue (ADOR) is offering an amnesty program for delinquent state and state-administered local taxes for a 3-year look-back period of from January 1, 2012 through December 31, 2014.
Click here for more information.
THE FINAL WORD
I am going to make a political prediction.
Dangerous buffoon Donald Trump will not be elected President – and I think deep down he knows this.
Trump’s ego demands that he always be a winner and never a loser. Once he wins the Republican nomination at the convention, and unfortunately I think he will, he will be a winner. But after that it will be all downhill and he can only end up a loser – and I expect a big loser.
To maintain his ego, and his self-perceived status as a winner, Trump will find some reason to drop out of the race after his convention win. He will leave the race while he is a “winner” and maintain his fantasy.
And his dropping out will make all of us winners as well.
Do you think this is possible – or just wishful thinking?
Just in case the idiot does decide to run after the convention - Republicans & conservatives, there is a valid alternative!
Read this –