This will be the last BUZZ installment until after the end of my
tax-season hiatus. I will return with
more BUZZ after April 17.
* The word from Michael Cohn at ACCOUNTING TODAY – “IRS to openfiling season Monday {today – rdf} with some extra warnings”.
The IRS may begin tax season today, but I do not begin my tax season
until February 1st. Don’t
forget to return here on February 1st for the annual posting of THE
TWELVE DAYS OF TAX SEASON!
* Russ Fox of TAXABLE TALK reports that “IRS & FTB Give Tax Relief to Wildfire and Mudslide Victims in Southern California” -
“The IRS extended impacted
taxpayers’ deadlines that fell (or will fall) between December 4, 2017 and
April 29, 2018 to April 30, 2018. This includes the Form 1040 deadline of April
17th (it will be April 30th for impacted taxpayers). This impacts individuals
and businesses who are in Los Angeles, San Diego, Santa Barbara, and Ventura
Counties who were impacted by the disasters.”
* If you haven’t already found a tax professional to prepare your
2017 returns yet you can begin your search at my website FIND A TAX PROFESSIONAL.
* More proof that politicians are idiots in “More States Considering Dubious SALT Charitable Contribution Workaround” from Jared Walczak of the TAX
FOUNDATION.
Jared correctly points out “what
you really need to know” -
" ·
Charitable contributions to government are only deductible, per IRS
guidance, if the contribution “is solely for public purposes (for example, a
gift to reduce the public debt or maintain a public park).” By contrast, these
contributions primarily serve a private purpose (reducing federal tax liability
through recharacterization), as they do not yield any increased revenue for the
state.
·
When claiming the charitable deduction, the taxpayer must exclude
contributions from which one benefits. For instance, if one purchases a $250
ticket to a benefit dinner, and the fair market value of the dinner is $50,
then $200 can be deducted—not $250. In this instance, the taxpayer receives a
benefit equal to the entire value of the contribution in lieu of taxes (the
corresponding tax credit), wiping out any deductible share.
·
Case law and IRS regulations generally require charitable intent for
a contribution to be deductible, meaning that the individual does not receive a
substantial benefit from the contribution. The sole purpose of the proposed
contributions in lieu of taxes proposal is financial gain. (the U.S. v.
American Bar Endowment, Hernandez v. Commissioner, Singer Co. v. U.S.)
·
The IRS has broad authority to classify a payment or charge as a tax
based upon its real nature. If it looks like a tax and acts like a tax, the IRS
and the courts could simply say that it is a tax.”
* Before I begin my tax filing season blog post hiatus at THE TAX
PROFESSIONAL I do a bit of “Horn Tootin’”.
THE FINAL WORD
What is the true “State of the Union”?
A dangerous, deplorable and despicable
ignorant and incompetent mentally unstable malignant narcissist, who continues
to destroy the credibility, integrity and stature of the White House
domestically and internationally on a daily basis, is the President.
America will NEVER be great again until
Donald T Rump, and all Republicans who publicly support and defend him, are
removed from office.
TTFN
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