IRS Adds Heartbreak to Heartlessness

IRS Adds Heartbreak to Heartlessness
How any woman could abandon her children? I don’t know. I’ll never understand that. But that’s exactly what the sister of Petitioner in TC Memo 2012-240 did. Packed her bags and headed to Jamaica. Her brother, fortunately, swung by her house and found her children sill there, all alone. The man, with his new ward, ...

New CBO Report and Taxes

New CBO Report and Taxes
The Congressional Budget Office released their annual late summer report, with amazing graphs which I will not post here. Wouldn’t want to steal their hard analytical work. Their latest conclusion? We’re going to have deficits. And the economy is going to keep growing, but slowly. Thank goodness for experts. And of course we know their ...

Ryan’s Return

Ryan’s Return
Paul Ryan released a couple years of tax returns on Friday night, and after scouring through about a billion articles filtering the information reported on the returns, I finally found the source PDF to make my own conclusions. Like I did with Romney’s 2010 return, I offer my thoughts as I was going through the ...

Wait, Did California Override Federal Law Again?

Wait, Did California Override Federal Law Again?
We all know that medical marijuana is illegal for federal purposes, but legal for California purposes. This is pretty old news. I’ll defer to others whether this is right or wrong, but it does result in interesting results, like having to put “drug trafficker” as your federal return occupation. Apparently last year they did it ...

Populist Political Anger–Executive Pay Edition

Populist Political Anger–Executive Pay Edition
My Google Alerts popped up this morning with “How Our Tax System Subsidized Bloated CEO Pay,” a blog post on the Huffington Post. I got a little bit excited. “At last,” I thought, “a HuffPo editorial that might have something I agree with.” I don’t tend to scour through their editorials or anything, but the ...

What Do Accountants Do – Prepare Forms

What Do Accountants Do – Prepare Forms
NOTE: This is the third part of a series about “What Do Accountants Do All Day.” After the information is gathered, rearranged in a useable format, and reviewed, it’s finally time to do a step understood by the general public: filling out forms. Obviously we don’t create them by hand, though pen to paper would be a ...

Sales Apportionment

Sales Apportionment
Yesterday I wrote about media’s cluelessness with “loopholes”. The article discussed related to California changing their apportionment factor from being able to choose the best of two methods, to only using a single sales factor. I focused mostly on my frustration that it was called a “loophole,” and glossed over the substance. I’d like to ...

Proof the Media doesn’t know what a ‘loophole’ is

Proof the Media doesn’t know what a ‘loophole’ is
CBS News recently posted a story about the California bill to “close [a] tax loophole.” Apparently, by “loophole” they mean “changing the very clear and concise and purposeful instructions created two years ago.” State income tax is generally determined by taking the Federal Taxable Income and tossing in whatever adjustment the state deems necessary. For ...

Pilots are heroes, but not tax exempt

Pilots are heroes, but not tax exempt
If it were up to me, I’d file the case relating to TC Memo 2012-232 as “one I’d watch on Judge Judy.” Maybe “Tax Court” could be a new hit daytime TV show. Here’s the outline for episode one: —— An airline pilot strides into the room, clad in full uniform. He smiles and waves ...

Rihanna’s Accounting Woes

Rihanna’s Accounting Woes
According to TMZ, Rihanna screwed herself out of millions. Based on the article, it looks like the real issue is that Rihanna didn’t read the find print. Whether the accountants took advantage of her or she naively believed they would magically manange every aspect of her financial life, I don’t know. Could have gone either ...