Tax Docket

Method Man plead guilty to tax evasion charges Monday. The Hip Hip artist  was arrested on August 9 for failure to pay state and personal income taxes. According to reports, he wrote a $40,000 restitution check on the spot after owning approximately $106,000 in taxes.

The Associated Press, Method Man Pleads Guilty to NYC- Tax Evasion Charge

ABC News, Method Man Pleads Guilty to Tax Evasion

Fox News, Method Man Pleads Guilty to Tax Evasion Charge

New York Daily News, Wu-Tang rapper Method Man Pleads Guilty to Attempted Tax Evasion, Pays $106K in Restitution

According to the Associated Press, the Supreme Court will hear an appeal from the Eighth Circuit Court of Appeals on the issue of whether student doctors are students or employees when it comes to collecting Social Security taxes. The case on appeal is Mayo Foundation for Medical Education and Research v. United States, 568 F.3d 675 (8th Cir. 2009).  Argument is set to take place in fall or winter and Supreme Court nominee Elena Kagan would not take part in the case if confirmed because she signed the government’s brief defending the IRS’ position.

In a previous post, Medical Resident- A Somebody, Not “Student” Body under FERPA and FICA, I discussed the issues and case law surrounding medical residents and their status’ as students and employees under FERPA (Family Education Rights and Privacy Act) and FICA. Perhaps the Supreme Court’s ruling will provide public university administrators with some guidance on how to characterize residents for purposes of FERPA.

The Associated Press released Highlights of the House Tax and Spending Bill. The legislation was passed by the House on Friday. Here are the tax measures outlined by the article:

Extends for one year about $32 billion in tax breaks that expired in January, including a property tax deduction for people who don’t itemize, lucrative credits that help businesses finance research and develop new products, and a sales tax deduction that mainly helps people in states without income taxes.

Imposes $11.2 billion in new Medicare taxes on lawyers, doctors and other service providers.

Increases taxes on investment and hedge fund managers, venture capitalists and many real estate investment partnerships by $18.7 billion.

Raises taxes on multinational companies some $14.5 billion by limiting their ability to use credits for paying foreign taxes to lower their U.S. tax liability.

Increases taxes on oil companies by $11.8 billion by raising from 8 cents a barrel to 34 cents a barrel the tax they pay into the Oil Spill Liability Trust Fund.

According to Bloomberg Businessweek, the United States Supreme Court will review the constitutionality of an Arizona tax credit for donations to organizations that provide scholarships at private schools. The case is Garriot v. Winn, 09-991:

The justices will review a federal appeals court decision that let a group of taxpayers press ahead with their challenge to the Arizona program, which has been in effect since 1997.

The taxpayers say the program uses religious organizations to award scholarships and lets those groups require that recipients enroll in sectarian schools.

Additional Coverage:

The Associated Press

Education Week News Blog

There has been a ton of coverage about the expiring First-Time Homebuyer Credit. Here is a list of articles discussing the tax credit which ends on Friday.

Credit Check: 10 First-Time Home-buyer Credit Tax Tips from the IRS, Tax Docket

UPDATE: With Buyer Tax Credit Ending, Market Has ‘Gone Nuts’, Wall Street Journal

Tax credit end not deterring US homebuyers-survey, Reuters

Homebuyers rush to take advantage of tax credits, Associated Press