Poor Billionaire Warren Buffett. He has never had things so good and he just feels so gosh darn awful about it.   As quoted by ABC News he says:

But I think that people at the high end — people like myself — should be paying a lot more in taxes. We have it better than we’ve ever had it.

You see. Now my heart goes out.  Moral dilemma, here folks.  Should I mention this our not? As surely, Mr. Buffett’s tax attorneys and advisers are surely going to be fired once Mr. Buffett learns that it is as easy as a postage stamp, an envelope and a check  to donate more taxes  to the US Treasury.  Oh boy, what to do?  I’m sorry fellas, I can’t keep this link to myself:

Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called “Gifts to the United States.” This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government. Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.

U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

There is no limit on donations. So Mr. Buffett can voluntarily expunge as much of his own wealth as he wants! And he doesn’t have to wait for Congress not to act!

And I hear the voices. I hear voices of people claiming that Mr. Buffett is being disingenuous, and transparently so. But if Mr. Buffett were really be disingenuous, would I really pull this quote out of context? Fine, I will, only to prove those voices wrong.

…[The Tax Code is a] product of an unholy combine between [1]  statist intellectuals with visions of state-sponsored utopias, [2] envious demagogues and the desire by [3] established, wealthy interests to prevent any competition to their place and to offload business costs to an expanding regulatory welfare state.

You see, there is no evidence that Mr. Buffett is either a [1] statist intellectual, or, [2] an envious demagogue. So there.

UPDATE: Thanks to Professor Reynolds at  Instapundit for the link!

What is the Public Policy behind the IRS?

And I’m not talking about small picture things like encouraging home-ownership via the mortgage interest deduction; encouraging higher education via the HOPE credit; or assisting low-income parents with the Earn Income Credit.

What I am talking about is big-picture large-concept stuff. What is the prime directive behind the Tax Code as enforced by the Internal Revenue Service?

Well, I haven’t seen anyone write this pretty about the 16th Amendment’s spawn than this:

…[The Tax Code is a] product of an unholy combine between statist intellectuals with visions of state-sponsored utopias, envious demagogues and the desire by established, wealthy interests to prevent any competition to their place and to offload business costs to an expanding regulatory welfare state.

Good lord that is some beautiful prose.

No no, I am not some sort of tax protester about to get all nutty and advise you to file a “Zero Return” or some other tax scam.  But this is why I have such a passion for tax law. I am one of those who look at the income tax as having less and less to do with raising revenue; but rather, a power grab by those who already have a lot of power.

Sure, the law is the law and I accept that. But that don’t make it right. And also, I guess I really do get a kick out of finding legitimate ways for the IRS accept less. It just makes me feel good deep down inside.

Source

“The Political Economy of the Origin and Development of the Federal Income Tax, by Bennett D. Baack and Edward John Ray, in Emergence of Modern Political Economy, ed. Robert Higgs (AI Press, 1985), pp. 127–31.

Why it’s the law! IRS must be gooder talkers with words.

Signed by President Obama and widely approved by both political parties in Congress, under the H.R. 946,  Plain Writing Act of 2010, the IRS now has 9 months to make all of its communications with taxpayers easy to understand. It’s the law, now IRS and all government agencies must use 100% approved plain writing!!!

What is plain writing? Check this out, yo:

…(3) PLAIN WRITING- The term ‘plain writing’ means writing that is clear, concise, well-organized, and follows other best practices appropriate to the subject or field and intended audience.

Take that IRS!!! You finally have to start communicating in regular-talk or else!

Or else…or else… nothing at all will happen.

You see,  section 8…section 8…well, it kind of says something like this:

So basically, if the IRS doesn’t move a muscle, or interprets “Plain Language” to mean only using sentences that once appeared in the Cleveland Plain Dealer, there’s nothing anyone can about it.

NOTE #1: Seems to be the perfect government program.  Creates an endless jobs program, consisting of parallel duties, with amorphous standards, with no sort of oversight or actual accountability, all under the guise of actually being helpful.

NOTE #2: How is passing a law and then making the law not subject to judicial review not violate the separation of powers doctrine? Smart 2Ls and disgruntled Tax Protesters encouraged to respond to mmm@irsmedic.com

Taxes really look to be going up across the board.  Especially for dividends — and — regardless of income level, dividends will be taxed at the higher ordinary income rates, instead of the lower 15%.  I talk more about it in this article in today’s Wall Street Journal.

UPDATE: It looks like my quotes for this version ended up on the cutting room floor. A shame indeed.

According to Jerry Brown, California Attorney General, self-declared “Tax Lady” Roni Deutch,  has engaged in a “heartless scheme” to swindle hundreds of thousands of dollars from people with tax problems.

Brown has brought a civil complaint against Deutch claiming she wildly misleads consumers by promising to reduce their debts to the IRS. Instead, she takes large, up-front payments from them but provides little or no help in reducing their tax bills.

The lawsuit claims that Deutch spends $3 million a year on advertising, much of it on late-night television, in which she uses false testimonials from clients who claim her firm saved them thousands of dollars in tax debts. For example, Brown three clients who appear in one advertisement are actually in worse shape since they hired Deutch.

The lawsuit alleges that Deutch set up a “boiler room.” where callers seeking help are subjected to high-pressure sales tactics and misleading information, including claims that the firm has a 99% success rate in dealing with IRS, according to the complaint. Deutch’s firm actually reduces only 10% of its clients’ tax bills, Brown said. Deutch also escalates costs for clients by placing them in an endless loop of requests for duplicate documents that increases her fees, which  increases penalties and interest her clients owe to IRS. And then once the fees are increased, the lawsuit claims Deautch engages in harrassing collection calls. So Deutch’s clients end up with headaches from both the IRS and Roni Deutch.

Attorneys General from all over the country are  finally going after tax resolution scam artists. I heard that in Texas the AG has sued Taxmasters after it received 1000 complaints.

But you can’t rely on an AG to substitute your own due diligence. And plus, even if the AG’s are victorious, does that mean you will get money back? Hardly. Someone “clever” enough to scam is probably clever enough to make themselves judgment proof.

So this is what you need to know, if you find yourself in a jam.

• An actual tax resolution attorney can prove invaluable in tough IRS cases. Many cases they are crucial to fight the IRS — the most powerful collection agency in the world — to help people get back with their lives.
• But be sure they are actual attorneys.
• Ask about their success with local Revenue Officers.
• Be sure they are apporved by the Better Business Bureau
• If someone telemarkets you, they are not attorneys.
• If someone gives a testimonial, ask if they mind if you contact that person. If it is an actual testimonial, they’ll let you.
• It is easy to give guarantees. It’s harder to deliver results. And if you send money out of state, you will have a tough time recovering your money when things go bad.

*   *   *

UPDATE: The “beam” reference explained.

WALLINGFORD, CT, Aug. 16, 2010 – If Nicholas Cage, Pamela Anderson and Wesley Snipes can get away without paying their income taxes, why should the IRS come after you?

“What people don’t understand is that all these celebs are far from getting away with their tax debts. Cage is still very much on the hook for his $14 million tax debt; Pamela Anderson has a lien on her house and Wesley Snipes just lost his appeal of a three-year prison sentence. The IRS will go after anyone who owes back taxes,” says tax resolution attorney Anthony Parent. “So why would you even consider trying to bullet- proof yourself if you owe taxes? Read More…

So..has the IRS hired any of the additional 16,000 Revenue Officers the Republicans said they would as a result of Obamacare?

Read More…

WALLINGFORD, CT, May 28, 2010 — This could be the ultimate Father’s Day story. This father/son team graduated law school together, practices law together and still manages to enjoy each other’s company every day. The two attorneys are principles in IRS Medic at Parent & Parent, a Wallingford, CT-based practice of tax attorneys that works to resolve tough tax problems for businesses and individuals. They didn’t start out to be law partners, but looking at it today, it looks like this was destined to happen.

Read More…

Hats off to IRS Revenue Officer Andrea Fabiani Orellana for winning the National Organization of Truth Tellers (NOTT) 2010 “Brave Hero” Award .

Employed by the IRS since 2001 to enforce  the collection of back taxes, Revenue Officer Orellana somehow found herself the target of a vicious smear.

The word on the street? That her alter-ego was  eBay Power Seller  “BlackTheRipper”  who had a nice little side business selling a variety of consumer goods. And the bad news: “BlackTheRipper”  didn’t report a cent of the money she made by buying low and selling high.

If accusations were true, as a agent of the US government charged with enforcing the Tax Code, this would certainly spell doom for Orellana/BlackTheRipper’s day job chasing down taxpayers.

“But this is all a lie, any reasonable person could surely see,” proudly relates  NOTT award-committee chair Ellie Light.

“Sure, Orellana/BlackTheRipper and associated eBay user names had 1800 eBay sales between 2004 and 2005.   But BlackTheRipper didn’t need to report anything! She was only selling personal items at a loss and gifts she didn’t want any longer. None of her transactions were taxable.”

But the Tax Court wanted to know… If Orellana/BlackTheRipper was really selling unwanted personal items at essentially at an internet “garage sale,” then why was she selling clothing and footwear of all different sizes?

Ms. Light proudly points to the Tax Court’s decision as the raison d’etre of  BlackTheRipper’s heroic truth-telling award:

[She] explained that she sold clothing and shoes of various sizes because she contracted plantar fasciitis and was unable to keep up her exercise routine. Lack of exercise caused her dress size to increase, according to [Orellana/BlackTheRipper], and the use of orthotics caused her shoe size to increase.

Asked when Orellana/BlackTheRipper should expect to receive what past winners have received — a gold-plated crock-pot , Light answers rhetorically “What and have it wind up on eBay? She had proven herself an ungrateful present recipient. She’ll get nothing and like it.”

Source:

Orellana v. Commissioner, T.C. Summ. Op. 2010- 51, U.S. Tax Court (Apr. 20, 2010)

BlackTheRipper’s ebay account appears to be gone. And blacktheripper appears to in Germany.

Actually, I take no position. I am just being provocative because I like attention. Regardless, as I will explain,  this story demonstrates that both parties in Congress are vastly confused about IRS procedures.

Read More…