That's what the House of Representative did with any tax bill before it . Then, today, they recessed for the month of August. Well, until after Labor Day--September 14th. Election day is early this year, November 2nd, so little will be done once they come back from "August" recess until the beginning of November. One hopes the lames ducks will do something before the end of the year.
There are too many important tax bills sitting around to be lackadaisical about all this: the estate tax that is to come roaring back next January 1; all of Bush's tax cuts that are to expire; foreign tax credit reform; and on and on. I won't go into why each one of these are so important, that has been rehashed in blogs throughout the web and newspapers around the country.
I began following these bills last February, now I'm frustrated with the slowness of Congress. Political posturing doesn't make good laws.
Friday, July 30, 2010
Wednesday, July 28, 2010
Getting the money in
The tax amnesty programs I referred to in my previous post are all geared to getting cash in the door at the various states. Then, for some states, depending upon the amnesty program, to create future tax revenues by having previous nonfilers on the the tax rolls.
All states are dealing with tight budgets, if not budget reductions or potential bankruptcy, and any way to get the money in is being looked at. The DC amnesty program which is geared toward current tax bills, not nonfilers, is expected to bring in $120 million of receipts for the 2010 budget and $170 million overall.
These are all viable solutions for taxpayers who want to/will be paying the tax anyway--they can at least avoid penalties on the late payments and in some cases part of the interest due. There is no program that reduces the actual amount of tax due. But be care with the dates, any late filing for these programs and you're out of luck.
All states are dealing with tight budgets, if not budget reductions or potential bankruptcy, and any way to get the money in is being looked at. The DC amnesty program which is geared toward current tax bills, not nonfilers, is expected to bring in $120 million of receipts for the 2010 budget and $170 million overall.
These are all viable solutions for taxpayers who want to/will be paying the tax anyway--they can at least avoid penalties on the late payments and in some cases part of the interest due. There is no program that reduces the actual amount of tax due. But be care with the dates, any late filing for these programs and you're out of luck.
Tax Amnesty--KY, FL, NV, NM, MN and now DC
You have until this Friday, July 30th, under the Kentucky amnesty program to pay tax to avoid penalty and interest charges. For eligibility and details, see
Kentucky Expedited Protest Resolution Program
Remember that Florida, Nevada and New Mexico have ongoing amnesty programs until September 30, 2010. For eligibility and more information, see
Florida Dept. of Revenue-Amnesty
Nevada Dept. of Taxation-Amnesty
New Mexico Tax and Revenue Dept-TaxRelief
One last one--Minnesota has an amnesty from penalties for tax evasion from foreign financial accounts and foreign business entities. It runs until October 29, 2010. See
Minnesota Voluntary Disclosure Program
Now, DC has announced that it will have an amnesty for those who already have known tax liabilities. Details will be on the Office of Revenue and Taxation website beginning tomorrow. See,
DC Office of Tax and Revenue
Upcoming amnesty program: Maine begins September 1, 2010 and ends November 30, 2010 and pertains to outstanding tax bills. This is called the "2010 Tax Receivables Reduction Initiatives." See for further details, which are currently scant:
Maine Revenue Services
Kentucky Expedited Protest Resolution Program
Remember that Florida, Nevada and New Mexico have ongoing amnesty programs until September 30, 2010. For eligibility and more information, see
Florida Dept. of Revenue-Amnesty
Nevada Dept. of Taxation-Amnesty
New Mexico Tax and Revenue Dept-TaxRelief
One last one--Minnesota has an amnesty from penalties for tax evasion from foreign financial accounts and foreign business entities. It runs until October 29, 2010. See
Minnesota Voluntary Disclosure Program
Now, DC has announced that it will have an amnesty for those who already have known tax liabilities. Details will be on the Office of Revenue and Taxation website beginning tomorrow. See,
DC Office of Tax and Revenue
Upcoming amnesty program: Maine begins September 1, 2010 and ends November 30, 2010 and pertains to outstanding tax bills. This is called the "2010 Tax Receivables Reduction Initiatives." See for further details, which are currently scant:
Maine Revenue Services
Sunday, July 25, 2010
Decisions, decisions
Nothing is more difficult, and therefore more precious, than to be able to decide.__Napoleon Bonaparte
The lead article in today's "Washington Post" was Congress' forthcoming battle to extend the Bush-era tax cuts or not. This has been in the news for at least a year. A tax bill was introduced last December, 2009--H.R. 4213--with President Obama's proposal to extend some of the tax cuts, apply more credits and leave the built-in tax increases on high-income taxpayers. This bill has gone back and forth between the House of Representatives and the Senate ever since. It has been sitting in the Senate since before the July 4th recess with no action.
The article focused on the political battle of raising taxes just before an election (all Representatives are up for re-election this November and 1/3 of the Senate). Then again, keeping the tax cuts will add trillions of dollars over the next few years to the national debt. We have two wars going and have a slow recovery out of a major recession--can we afford to keep the tax cuts? But will raising taxes slow the economy further?
A year ago some optimists (myself among them) believed that the issue of the tax cuts, or a replacement, would be resolved, at the latest, by early 2010. Now we're coming down to the last six months before they are nixed and nothing has been decided.
It's not as though our lawmakers didn't know this was coming. The sunset for these tax cuts was built into the laws that created them back in 2001. Instead of continuing a screed about how lax Congress is in its duties, I'm going to write about why we need to have this settled, now.
In order for businesses and individuals to save and invest, they need to know what their disposable income will be. One significant factor in that income is what is the amount of tax that will be paid on it. If one doesn't know, one hoards all resources until one does know. This hoarding is not the best thing for a fragile economy, as we have now. All indications are that the economy is recovering from the recession and will continue to do so. But there is a segment of the population of both individuals and businesses that are playing the "wait and see" game. One doesn't know and can't estimate what taxes will be next year, so why do anything?
This "wait and see" and hoarding will only prolong the slow recovery because there is not the correct level of new investment into our economy. New investment will create jobs. Jobs will create purchasing power and more savings. More savings will create new investment. A continuous circle, or spiral. A spiral that we want to go up. Isn't this all basic economics?
So, because of a lack of decision in Congress, the whole economy is not deciding. And new investments are not being made. Make a decision, please.
The lead article in today's "Washington Post" was Congress' forthcoming battle to extend the Bush-era tax cuts or not. This has been in the news for at least a year. A tax bill was introduced last December, 2009--H.R. 4213--with President Obama's proposal to extend some of the tax cuts, apply more credits and leave the built-in tax increases on high-income taxpayers. This bill has gone back and forth between the House of Representatives and the Senate ever since. It has been sitting in the Senate since before the July 4th recess with no action.
The article focused on the political battle of raising taxes just before an election (all Representatives are up for re-election this November and 1/3 of the Senate). Then again, keeping the tax cuts will add trillions of dollars over the next few years to the national debt. We have two wars going and have a slow recovery out of a major recession--can we afford to keep the tax cuts? But will raising taxes slow the economy further?
A year ago some optimists (myself among them) believed that the issue of the tax cuts, or a replacement, would be resolved, at the latest, by early 2010. Now we're coming down to the last six months before they are nixed and nothing has been decided.
It's not as though our lawmakers didn't know this was coming. The sunset for these tax cuts was built into the laws that created them back in 2001. Instead of continuing a screed about how lax Congress is in its duties, I'm going to write about why we need to have this settled, now.
In order for businesses and individuals to save and invest, they need to know what their disposable income will be. One significant factor in that income is what is the amount of tax that will be paid on it. If one doesn't know, one hoards all resources until one does know. This hoarding is not the best thing for a fragile economy, as we have now. All indications are that the economy is recovering from the recession and will continue to do so. But there is a segment of the population of both individuals and businesses that are playing the "wait and see" game. One doesn't know and can't estimate what taxes will be next year, so why do anything?
This "wait and see" and hoarding will only prolong the slow recovery because there is not the correct level of new investment into our economy. New investment will create jobs. Jobs will create purchasing power and more savings. More savings will create new investment. A continuous circle, or spiral. A spiral that we want to go up. Isn't this all basic economics?
So, because of a lack of decision in Congress, the whole economy is not deciding. And new investments are not being made. Make a decision, please.
Saturday, July 24, 2010
What will 2011 taxes be?
I found a great website, just for fun, by way of Kay Bell at Don't Mess with Taxes. Brought to you by the Tax Foundation, MyTaxBurden.org lets you calculate your 2011 taxes under 3 "what-ifs":
My family is better off under Obama's proposal for 2011 based on my best guess, but who knows what the future will bring, both in the way of tax law and my family income? The first is up to Congress and the second up to me and my efforts.
Congress will need to act soon to get something passed. It will be in summer recess soon, then Representatives will be campaigning for re-election along with some Senators. It is possible to enact major tax legislation in an election year, but the likelihood goes down.
We won't talk about my efforts to raise my family's tax burden.
So plan for the Bush tax cuts to expire as originally enacted at the beginning of the decade and be glad if they don't.
- Bush tax cuts are all extended
- Bush tax cuts expire and we go back to old law
- Obama's budget proposal is passed (to include extending some of the Bush cuts but not all and adding new tax cuts, credits and tax increases)
My family is better off under Obama's proposal for 2011 based on my best guess, but who knows what the future will bring, both in the way of tax law and my family income? The first is up to Congress and the second up to me and my efforts.
Congress will need to act soon to get something passed. It will be in summer recess soon, then Representatives will be campaigning for re-election along with some Senators. It is possible to enact major tax legislation in an election year, but the likelihood goes down.
We won't talk about my efforts to raise my family's tax burden.
So plan for the Bush tax cuts to expire as originally enacted at the beginning of the decade and be glad if they don't.
Thursday, July 15, 2010
IRS special assistance Saturday July 17 for those affected by BP oil spill
The IRS website, www.irs.gov, has the specific addresses and times it will be open this Saturday, July 17 to aid those in areas affected by the BP oil spill. This from IRS News Release IR-2010-85:
IR-2010-85, July 14, 2010
WASHINGTON –– The Internal Revenue Service announced the locations of Taxpayer Assistance Centers in seven Gulf Coast cities that will be open this Saturday, July 17 to provide help to taxpayers impacted by the BP oil spill.
The following locations will be open from 9 a.m. to 2 p.m. Central Time:
Individuals who have questions about the tax treatment of BP claims payments or who are experiencing filing or payment hardships because of the oil spill will be able to work directly with IRS personnel at any of these locations on Saturday.
- 1110 Montlimar Drive, Mobile, Ala.
- 651-F West 14th St., Panama City, Fla.
- 7180 9th Ave. North, Pensacola, Fla.
- 2600 Citiplace Centre, Baton Rouge, La.
- 423 Lafayette St., Houma, La.
- 1555 Poydras Street, New Orleans, La.
- 11309 Old Highway 49, Gulfport, Miss.
Last week, the IRS announced the opening of a dedicated phone line for victims of the Gulf oil spill –– 866-562-5227. This special toll-free line is open weekdays from 7 a.m. to 10 p.m. and will also be open to callers on Saturday, July 17 from 9 a.m. to 2 p.m. Central Time.
In certain cases, IRS staff can assist oil spill victims by suspending collection and examination actions. Taxpayers who need this assistance must request it. Others may decide to continue making payments because interest will continue to accrue on outstanding balances, even if some penalties are abated.
In addition to postponing collection actions, the IRS continues to have a number of other ways to help taxpayers deal with oil spill issues or other economic hardships, including:
- Added flexibility for missed payments on installment agreements and offers in compromise for previously compliant individuals.
- Consideration of a taxpayer’s current income and potential for future income when negotiating an offer in compromise.
- Accelerated levy releases.
- Assistance of the Taxpayer Advocate Service for those experiencing economic harm and seeking help resolving tax problems that have not been resolved through normal channels.
Wednesday, July 14, 2010
Blogging existence
Blogging is a way for everyone in the world to read your opinion, thoughts, actions. But if no one reads you, do you exist?
Senators, do your job!
Typical politician posturing! I love it! A group of Democratic senators have asked the IRS to reduce the paperwork burden on prospective rules for 1099 reporting--rules they passed in Congress! I must defend the IRS here, they are charged with administering the Internal Revenue Code--which Congress legislates. The IRS doesn't make the laws, Congress (which includes the Senate and the House of Representatives) does. If you have a problem with the laws, call-email- write your congressman or Senator, or both.
The law in question was passed as part of the health care reform bill this spring. It requires all businesses, tax-exempt entities, and federal, state and local governments to issue Forms1099 to anyone from whom they purchase services, rents or goods of $600 or more during a year. The law in the past has pertained only to services and rents. The 'goods' requirement will include a small business that purchases office supplies and coffee-room supplies from, say, Costco during the year that equal or exceed $600. They will need to get Forms W-9--so they have the correct name, address and identification number--from all vendors, because who know in January who will exceed the $599 limit in December, and then issue Forms 1099 in the following January.
This is part of the plan to make sure that all income is reported by taxpayers.
The law in question was passed as part of the health care reform bill this spring. It requires all businesses, tax-exempt entities, and federal, state and local governments to issue Forms1099 to anyone from whom they purchase services, rents or goods of $600 or more during a year. The law in the past has pertained only to services and rents. The 'goods' requirement will include a small business that purchases office supplies and coffee-room supplies from, say, Costco during the year that equal or exceed $600. They will need to get Forms W-9--so they have the correct name, address and identification number--from all vendors, because who know in January who will exceed the $599 limit in December, and then issue Forms 1099 in the following January.
This is part of the plan to make sure that all income is reported by taxpayers.
Monday, July 12, 2010
IRS to help those in Gulf States
Starting today the IRS has a toll-free number for people affected by the oil spill in the Gulf of Mexico to call with tax questions. 1-866-562-5227. The phones will operate weekdays 7 a.m. to 10 p.m. local time.
Additionally, this Saturday, July 17, at select sites throughout the affected areas, IRS offices will be open to help taxpayers and tax professionals:
http://www.irs.gov/
Additionally, this Saturday, July 17, at select sites throughout the affected areas, IRS offices will be open to help taxpayers and tax professionals:
- Alabama: Mobile.
- Florida: Panama City and Pensacola.
- Louisiana: New Orleans, Houma and Baton Rouge.
- Mississippi: Gulfport.
http://www.irs.gov/
War and Peace
"When monarchs through their bloodthirsty commanders lay waste a country, they dignify their atrocity by calling it "making peace"--Tacitus
Sunday, July 11, 2010
www.regulationroom.org
As a traveler, I'm interested in how airlines are running their business and treating passengers. Not always as well as they should, we all know. Well, the Feds are writing some new regulations on travelers rights, filling in some gaps on what the rules currently are. Anyone can comment on these regulations, and a good place to start is at the website www.regulationroom.org where the proposed regulations are explained and then they tell you how to go about getting your comments to the right people. Go for it.
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