Category: Tax

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I. Introduction

To a certain extent, most everyone becomes a
tax protestor of sorts come tax season.  The goal in filling out one's
tax return is to ensure that one receives every penny back that can
possibly be justified — not that one pays the appropriate amount of
tax given one's circumstances.  And yet, most of us do indeed pay. 
Among those that do not pay in full can be found at least two distinct
categories of shirkers: the tax evader, and the tax protestor.  The tax
evader is content to freeride off of the compliance of the rest of
society, choosing not to pay taxes but not without tacit reliance on a
system that requires taxation.  The tax protestor, on the other hand,
eschews taxation as a matter of course, proclaiming his distaste for
this or any system of taxation by not taking part therein.  While the
net effect … Read the rest

Estate and gift taxes have been a thorn in the side of the affluent for ages, while serving as an efficient stream of revenue for the federal government. Gift and estate taxes are two different types of taxes. Gift taxes apply to lifetime transfers of assets, while assets transferred at death are subject to estate taxes. [1] The Federal estate tax is levied “on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.” [2] The current status of the estate tax is governed by the Federal Economic Growth and Tax Reconciliation Act of 2001 (“EGTRRA”). [3] Under EGTRRA, the estate tax has a ceiling of 45% of an individual’s estate in 2007 through 2009, a ceiling of 35% in 2009 and is fully repealed by 2011. [4] However, a sunset provision means that if Congress does not reenact the relevant … Read the rest

I. Introduction

Tax exempt organizations, by design, do not
have to answer to shareholders.  The executives of these organizations
do not feel the same pressures as do executives of taxable, for-profit
organizations to run the entities in the most streamlined
shareholder-interest-maximizing manner.  Instead, the taxpaying public
(who arguably subsidizes the activities of the tax-exempt sector)
relies on detailed government regulation, the vast majority of which is
found in the Internal Revenue Code, to ensure that the tax exempt arena
neither becomes a black hole for this country's resources nor a
playground for the very wealthy.  As part of this monitoring charge,
the IRS recently completed a three-year investigation into the
compensation of executives of tax-exempt corporations.[1]  This article
discusses the objectives and methodology of this investigation, its
findings and its minimal impact.

II. Analysis

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Perhaps the most hot button issue in domestic politics these days is the growing healthcare problem in the United States. In 2004, nearly “46 million Americans, or 15.7 percent of the population, were without health insurance.” [1] While the majority of Americans receive healthcare insurance through their employers, the issue has been exacerbated by rising healthcare costs, limited coverage, “an increasing reliance on part-time and contract workers who are not eligible for coverage,” and “small employers [who] cannot afford to offer health benefits.” [2] Further, even the insured are being asked to make larger contributions for their coverage, forcing many to remain uninsured because they cannot afford these contributions. [3] During his State of the Union Address on January 23, 2007, President Bush sought to tackle the issue by proposing to tax healthcare benefits but to also offer a $15,000 standard deduction or $7,500 deduction for those filling single. [4] … Read the rest

I. Introduction

The IRS has, in the opinion of this
author, a (not so) popular reputation for coming down on taxpayers
hard,inconsistently and infrequently.  Given this perception and
perhaps this reality of relative infrequence of consequence on
taxpayers engaging in funny business, it makes sense that the Internal
Revene Code be given some other teeth to guard against such
shenanigans.  In general, the tooth of choice is the threat of heavy
monetary penalties.  Unfortunately, a recent tax decision coming out of
a Texas federal district court could mark the beginnings of a shift
against the imposition of penalties on tax evaders — a shift that
could embolden an already scarily bold nation of tax-shirkers.

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I. Introduction

Empowered by the American Jobs Act of 2004,
the IRS recently implemented a private debt collection program designed
to "reduce the growing number of uncollected tax liabilities while
allowing the Service to better focus on more complex tax cases and
issues."[1]  The plan was criticized early on for paying the private
collectors as much as 24% of the recovered liabilities in return for
their collection efforts, which amount was thought could result in
improper collection practices on the part of the private
collectors.[2]  While the plan hasn't been in action long enough to
render judgment on whether these concerns are warranted, another
problem has reared its head: the program isn't making money.  It may
not so much as break even.[3]  This article addresses concerns of abuse
and well as profitability in the short and long term.

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