Monday, August 29, 2016


* Kay Bell gives us the bad news that “IRS wants to more than double some payment plan fees”.

There originally was no fee for entering into an installment payment agreement with the IRS.  And that is how it should be.  Taxpayers are already paying the IRS interest and some penalty – that is enough.

Setting up an installment payment agreement when filing a balance due tax return is good for the IRS and good for taxpayers – but it is not so good for taxpayers any more with these fees.  I used to advise clients to use installment agreements when there was no fee – but I no longer recommend formal agreements because of these fees.

One of my clients had set up an installment agreement with the IRS, with the fee added to the amount due.  Then he received additional income and was able to pay the full balance due in one payment, no longer needing an installment agreement.  However he was still forced to pay the fee for setting up the unused agreement.

* And for the trifecta, check out Kay Bell’s recent post “Tax deductions for allergy-related medical costs”.

* Just a reminder to check out my RAMBLINGS if you have not done so yet.   And let me know what you think.  BTW - a new post is coming August 30th.

* Joe Kristan ends his “Tax Roundup, 8/22/16:USA #1! I’m not talking about medal counts. Also: links on AIRbnb taxes, scams, frivolity and much more!” at the ROTH AND COMPANY TAX UPDATE BLOG with a truly great quote from TAZX ANALYSTS’ David Brunori (highlight is mine) -

But why is every good goal accompanied by a tax plan? Why is it that every time someone thinks something is wrong, they turn to the tax law for a fix? Folks, the tax laws are supposed to be for raising revenue, not engineering whatever it is we’re trying to engineer this week. We do this all the time. Obesity? Fat tax. Urban violence? Gun tax. Skinny polar bears? Carbon tax. Skinny polar bears? Prius credits. Let’s just stop it.”

Right on, Brother David.  That is what I have been saying for years.

* The IRS actually has a “Sharing Economy Tax Center” for those who participate in “online platforms available to rent a spare bedroom, provide car rides, or to connect and provide a number of other goods or services” like Uber, Lyft, and AirBNB.

* Another self-absorbed and self-important reality tv idiot in trouble with the IRS.  Kelly Phillips Erb, FORBES.COM’s Taxgirl, gives us the scoop in “More 'Real Housewives' Tax Drama As IRS Hits NeNe Leakes With Massive Tax Lien”.

As Kelly points out, this boob isn’t the first “Real Housewife” (these drunks are neither “real” nor what I would consider a “housewife”) to be in trouble with Uncle Sam.  Click here for a FORBES.COM slide show of reality show idiots who were thinking about themselves so much they forgot to think about taxes.

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* A recent CHECKPOINT NEWSSTAND week-day daily email newsletter reports “New self-certification procedure for taxpayers who miss 60-day rollover deadline” -

In a Revenue Procedure {Rev Proc 2016-47, 2016-37 IRB; IR 2016-113 – rdf}, IRS has provided a new self-certification procedure designed to help recipients of retirement plan distributions who, due to one or more specified reasons, inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA). The new self-certification procedure allows these taxpayers to claim eligibility for a waiver of the 60-day rollover requirement that can be relied upon by a plan administrator or IRA trustee in accepting and reporting receipt of the rollover contribution.”

Sally P. Schreiber lists the 11 reasons that qualify for relief in this new procedure in detail in her article “IRS allows self-certification for late rollovers of retirement plan funds” at the JOURNAL OF ACCOUNTANCY. 

* Jason Dinesen correctly warns that “Payroll Penalties Are Almost Impossible to Get Rid Of” at DINESEN TAX TIMES (highlight is mine) –

I preach this to my clients all the time: payroll is a big deal. If you choose to go down the road of having employees, you MUST jump through the hoops.”

* At the Tax Foundation’s THE TAX POLICY BLOG Scott Greenberg suggests there are “Three Good Ideas in Clinton’s Small Business Tax Plan”.

I strongly oppose the Democratic Party’s tax platform and proposals (see my TWTP post “Politics and Tax Reform”).  But I do somewhat agree with Scott when it comes to these 3 items.

I definitely do agree with Scott when he says -

If expensing and cash-flow taxation are good policies, then the Clinton campaign should push to extend them to all U.S. businesses, not just the smallest ones.”

In addition to the proposals discussed above “Clinton’s small business plan would create a new standard deduction for small businesses, which would give businesses the option to stop keeping track of their business expenses for tax purposes.”

This is not really a good idea.  Businesses must be taught and encouraged to keep track of their business expenses for all sorts of reasons, not just for taxes, and should not be given any "excuse" to avoid this task.  And it must be done even with a standard deduction option.  As with any other tax return option, to make an intelligent decision regarding which to use you would need to compare actual business expenses to the standard deduction.


Republicans, conservatives, and independents – your opposition to Hillary Clinton, based on political or trust issues, is NOT a good enough reason to vote for dangerous narcissist Donald Trump.

There is absolutely no good reason to vote for Trump. The only rational and intelligent option is to vocally oppose and denounce him. If Trump wins America and the world truly loses.

If you oppose Hillary Clinton vote for the Libertarian Party ticket of Gary Johnson and Bill Weld, two former Republican governors.


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