Tax Docket

Quick Books? Taxpayers Spend 7.6 Billion Hours and $140 Billion to Comply with Code

Joshua — Tue, 31 Aug 2010 11:30:32 +0000

According to an article from the Washington Post today, taxpayers spend 7.6 billion hours and nearly $140 Billion in order to comply with the Internal Revenue Code. This is reported a few days after the release of the President’s Economic Recovery Board’s report regarding the complexity of tax code. Evidence of the increased complexity of the code cited in the report is the enlargement of the Form 1040 (form used by individual taxpayers to file taxes) Instructions from 14 to pages to 44 pages and 15,000 changes to the code since 1986.

State Tax Policy Changes in 2010

Joshua — Thu, 26 Aug 2010 14:14:12 +0000

Tax Foundation has posted A Review of 2010′s Changes in State Tax Policy. The article provides key changes in state income, sales, and other selective sales taxes such as cigarette taxes and soda taxes. A link to the article is below.

A Review of 2010′s Changes in State Tax Policy

There’s Something Different About NY Bagels — and It’s Not the Water

Joshua — Tue, 24 Aug 2010 16:46:32 +0000

From the Wall Street Journal:

State tax officials, under orders from cash-strapped Albany to ramp up their audit and compliance efforts, have begun to enforce one of the more obscure distinctions within the state’s sales tax law.

In New York, the sale of whole bagels isn’t subject to sales tax. But the tax does apply to “sliced or prepared bagels (with cream cheese or other toppings),” according to the state Department of Taxation and Finance. And if the bagel is eaten in the store, even if it’s never been touched by a knife, it’s also taxed.

Philly Bloggers’ Must Maintain Blog “Wit” a Tax

Joshua — Mon, 23 Aug 2010 18:55:22 +0000

When you step up to order your cheeseteak at Pat’s King of Steaks, you order it “wit or wit out” onion. Well, for bloggers in Philly, they can only maintain their blog wit a tax. According to multiple articles, Philadelphia imposes a $300 “business privilege license” tax on local bloggers in addition to city wage taxes and taxes on net profits earned from blogging.

NBC Philadelphia: Pay Up or Shut Up: Bloggers Charged $300 For Their Thoughts
Washington Examiner: Philly requiring bloggers to pay $300 for a business license
Mashable:Philadelphia Tax Code Sparks Big Controversy with Small Bloggers

Tax Tracks Volume 10 – Zac Brown Band, Tax Man Shoes

Joshua — Fri, 20 Aug 2010 13:17:43 +0000

For our 10th Tax Track I found a nice southern treat. This is an old Zac Brown Band track called “Tax Man Shoes.” You probably know the Zac Brown Band tracks “Toes” and “Chicken Fried” and “Highway 20 Ride.” This Tax Track will definitely help get you get through today and allow you to coast into the weekend. Turn it up!

The Stakes are High When Trying to Figure Out Next Year’s Estate Tax Rates…Literally

Joshua — Wed, 18 Aug 2010 15:00:09 +0000

Trying to figure out what estate tax rates will apply next year is almost as frustrating for estate planners as it is for ESPN in trying to figure out whether Brett Favre will retire or not. Georgia estate planner John J. Scroggin took the uncertainty to another level. According to the Wall Street Journal’s Financial Adviser’s Blog, he asked a group of estate planners to place bets on how Congress would handle the estate tax. The Jackpot: $200. Scroggin thinks there are three possibilities for the estate tax. “The options are a 45% tax on estates over $2 million; a 60% tax on estates over $1 million; or 60% tax on estates over $2 million.”

WSJ Financial Adviser Blog: On Estate Tax, All Bets Are…On

Is Paying Higher Taxes Like Having Your iPad Shot with a Shotgun?

Joshua — Wed, 18 Aug 2010 13:26:41 +0000

If you are one of those die hard Apple owners, you may not want to watch this. A tax preparation company has created the advertisement below which compares paying too much in taxes to having your iPad shot with a shotgun.

Gizmodo: iPad Meets Bullet

10 Tax Hikes Aimed at Small Businesses

Joshua — Tue, 17 Aug 2010 15:28:21 +0000

From Forbes, Tax Hikes Loom For Businesses (slideshow)

Taxes take the top spot on the legislative agenda when Congress returns from its summer recess in September. Lawmakers have said they’ll take up legislation to provide a boost to small businesses and to extend some expiring (or expired) tax breaks. They’re also under pressure to reduce the budget deficit. It’s got to be paid for somehow.

Trump Casinos Dealt Losing Hand in New Jersey Tax Court Appeal

Joshua — Sat, 14 Aug 2010 21:05:30 +0000

On Friday, a New Jersey state tax court ruled on appeal that a filing by three Trump casinos for overpaid utility taxes was barred by the four-year statute of limitations. The appeal was to recover nearly $3 million in overpaid taxes which were charged in error by Atlantic City Electric between 1998 and 2001. The appeals court dismissed Trump’s attorneys argument that the statute of limitations should have been extended because the tax was not clear on the bill. The court held that the error could have been discovered earlier.

Court Opinion

Businessweek, Trump casinos lose appeal on $2.7 million tax overpayment

IRS Homebuyer Credit Video

Joshua — Fri, 13 Aug 2010 15:24:30 +0000

The IRS has released the helpful video clip below which explains the extension of the deadline to close and what steps you need to take in order to obtain the credit.

If you want to learn about how the homebuyer tax credit closing extension passed, watched this informational video.