Articles

Why Not a 100% Tax Rate? (WSJ 2021)

• Democrats propose income tax rates that could reach as high as 80.7% when combined with state levies.

Arcane Advice for the Tax Practitioner

• Practitioners should remember sections 6201(d), 6212(c), and 6213(b)(2) when representing clients in IRS disputes.

Bidenomics May Repeat FDR’s Blunder (WSJ 2020)

• Democrats propose new taxes similar to those that plunged America back into depression in 1937.

State Movie Subsidies Are a Flop

• States have been throwing money at the movie industry, with poor results.

The 2019 Taxpayer First Act is a Misnomer

• Congress can call it "Taxpayer First" but it harms more than it helps.

Reagan Exaggerated When Claiming He Paid Over 90% Tax

• Ronald Reagan boasted that he stopped working when he hit the top tax bracket. He didn't!

Why Should Congress See Trump's Tax Returns?

• Courts are deciding whether Congress and the NY State Attorney General can force the release of President Trump's tax returns. Read a brief review of the nearly 100-year history upon which they base their claims.

Reforming the IRS: Is the Taxpayer Really First?

• IRS restructuring bills are pending in Congress. They need improvement.

The State Persecution of Donald Trump and MLK Jr.

• Tax officials persecuted Martin Luther King, leave hand-off on the Clinton Foundation, but target President Trump.

Smoot-Hawley tariffs and the Great Depression

• Smoot-Hawley tariffs didn't precipitate the Great Depression.

Conservation Easements: The 21st Century Abusive Tax Shelter

• Don't fall for this tax shelter being promoted by otherwise very respected real estate and wealth advisers.

Why Are Taxes So Complex?

• Jay explains the difficulties that impede passage of tax simplification legislation.

Do Tax Returns Matter In Presidential Elections?

• Learn the history of tax return publicity by presidents and other politicians.

Linux for CPAs

• Linux is a powerful superior computer operating system that can be used in a tax practice.

Debunking “Fair Share”

• Just what is meant by “fair share”?

Many Unhappy Returns—Millions of Them.

• Reprinted from The Wall Street Journal. 2013 is the 100th anniversary of the 16th Amendment which authorized an income tax. Here's how it got started.

Efiling and the Explosion in Tax-Return Fraud.

• Reprinted from The Wall Street Journal. Identity-theft cases rocketed to 1.1 million in 2011 from 51,700 in 2008. The IRS has a backlog of 650,000.

Practice Safe Efiling.

• Reprinted from The Journal of Accountancy. A checklist for tax preparers to protect their clients when efiling.

The Case Against Efiling.

• Efiling makes possible more complex tax laws, as well as raising audit risk, compliance costs, and penalties. It encourages cheating so extensive that tax fraud is now the third largest theft of federal funds. Tax identity theft is largely perpetrated by efiling. Jay's article has tips on enlisting IRS to help try protect yourself against becoming a victim. Here's the efiling story IRS won't advertise and the media has not reported.

Mitt Romney and his “Carried Interest” Tax Shelter

• How does Mitt Romney manage to pay income tax at just 15 percent?

Taxation for Prosperity.

• Monetary policy is mired in a liquidity trap. Keynesian stimulus spending has proven ineffective. We faced much gloomier prospects following World War II. Good tax policy was a major part of the formula that brought us prosperity then. It's time to invoke taxation for prosperity again.

The Debate Over Oil and Mineral Taxes

• Republicans are seriously considering repealing ethanol tax credits. Democrats complain about the 10 tax benefits for oil companies. There is a misguided 100-year history to this haphazard energy and mineral tax policy that is revealed in "The Debate Over Oil and Mineral Taxes."

In Memoriam: Martin D. Ginsburg

• Martin D. Ginsburg died on June 27, 2010. He was reknown as the best tax lawyer in Washington and as husband of Justice Ruth Bader Ginsburg.

Can An Estate Tax Be Retroactive?

• The estate tax expired on January 1, 2010. Congress reinstated it on December 17, 2010, retroactive to January 1, 2010, affecting the tax liability of estates of people who died before the law was enacted. Is a retroactive tax law constitutional? Find out by reading "Can An Estate Tax Be Retroactive?"

IRS to Delete First Five SSN Digits on Form 1099

• A Taxpayer's Prayer to IRS: "Bless and keep our social security numbers that we may never forget them, lest we lose the power to communicate with thee." IRS is starting a pilot program for replacing the first five digits on Forms 1099 sent to you with X's. Here's what's wrong with the idea.

Tax Provisions In Health Care Reform

• You've heard bits and pieces about health care reform. Here you can read about the House and Senate provisions. Many of the tax provisions will shock and surprise you. There's a highly controversial provision for gay tax benefits. Your tax returns will lose confidentiality. And forget about tax simplification — ever! Here's the best place to read about the Tax Provisions In Health Care Reform. The article includes links to the 2,019-page House version and the 2,410-page Senate version.

Applying for a Private Letter Ruling

• Here's how to get IRS to guarantee that your transaction will pass muster with them by Applying for a Private Letter Ruling.

The New Tax On Students

• Most students under age 24 are now taxed on investment income at their parents' tax rate. Complying with this law allows the student to obtain the parents' tax return information directly from IRS. That could make for some interesting allowance negotiations. Learn how in The New Tax On Students.

Presidents and the First Book

• Jimmy Carter, Laura Bush, Barack Obama, and Hillary and Bill Clinton have all written books. And they all appear to have overpaid taxes on the royalties. The lesson on why they overpaid may apply to all amateur new authors, as explained in Presidents and the First Book.

Preaching Tax Compliance

• All Saints Episcopal Church in Pasadena, California allowed a political sermon -- which brought on the wrath of IRS. Find out how the church won in Preaching Tax Compliance.

Tax Simplification: Just Get Rid of 89 Million Unnecessary Returns

• Jay has some interesting thoughts on simplifying the federal tax system as he proposes Just Get Rid of 89 Million Unnecessary Returns.

Advantages of a C Corporation

• When should you select a C corporation over an LLC, S corporation, or other entity? Jay has some suggestions on the Advantages of a C Corporation.