Tax Guru – Ker$tetter Letter

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Archive for March, 2011

Posted by taxguru on March 14, 2011

Obama’s Social Security Hoax –  A good quick summary of many of the government lies about SS by Charles Krauthammer. 

With this Ponzi Scheme on the brink of collapse, why would any sane person want to pay any more money into it when there are legitimate steps that can be utilized to reduce or eliminate those payments?  In addition, isn’t it our professional fiduciary responsibility to our clients to assist them in not throwing more money down this rat-hole?  It is sad to see how many professional tax advisors won’t give their clients any help in this regard.

 

TaxCoach Software: Are you giving your clients what they really want?

 

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Delusional clients…

Posted by taxguru on March 13, 2011

I stumbled onto these funny videos illustrating some of the frustrating situations we tax pros often find ourselves in.

Bankers requesting client info:

http://www.xtranormal.com/site_media/players/jwplayer.swfhttp://www.xtranormal.com/site_media/players/embedded-xnl-stats.swf

 

Overly reliant on bookkeeper:

http://www.xtranormal.com/site_media/players/jwplayer.swfhttp://www.xtranormal.com/site_media/players/embedded-xnl-stats.swf

 

Falling for pyramid scheme:

http://www.xtranormal.com/site_media/players/jwplayer.swfhttp://www.xtranormal.com/site_media/players/embedded-xnl-stats.swf

 

Simply complicated tax returns:

http://www.xtranormal.com/site_media/players/jwplayer.swfhttp://www.xtranormal.com/site_media/players/embedded-xnl-stats.swf

 

 

 

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Too stupid to believe…

Posted by taxguru on March 12, 2011


Celebrity Apprentice Star Richard Hatch Headed Back to Prison for Nine Months

This moron, who portrays himself as an evil genius, really hasn’t learned a thing from his three years in the Federal Gray (Gay?) Bar Hotel.  Or does he just enjoy life inside so much that he insists on taunting the Feds by continuing to refuse to pay the taxes on his Survivor winnings?

 

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Not accepting new taxes…

Posted by taxguru on March 11, 2011

I always love hearing and seeing stories about people who don’t simply drop their drawers and bend over every time some money hungry rulers try to increase fees and taxes.  This story from Illinois has some great illustrations of what can happen if the greedy rulers are faced with some consequences for their actions.

Illinois Governor Signs Amazon Internet Sales Tax Law

So, the net result of the Illinois governor wanting to assess sales tax on Amazon sales in his state is now going to be the fact that thousands of taxpayers in Illinois will lose their affiliate accounts with Amazon, along with the money that they earn from that business relationship.  That means that there will be less taxable income reported by those soon to be former affiliates and thus less income tax paid to the state of Illinois. 

And, since there will no longer be any Illinois based Amazon affiliates, there will be no sales tax collected for Illinois on Amazon sales to Illinois residents, who can still go directly to Amazon’s site or click on a link from an affiliate in any other state. 

The net result for the Illinois tax coffers –  less revenue, not more.  I think this is a great way to tell those money hungry State Rulers that they can’t fiscally rape businesses without suffering some consequences.  I hope we see more of this kind of resistance to similar new taxes all over this country.

 

http://rcm.amazon.com/e/cm?t=taxfreeexchacorp&o=1&p=13&l=ez&f=ifr&f=ifr

 

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Remember, paying taxes is the patriotic thing to do…

Posted by taxguru on March 6, 2011

From Blog Comix

 

 

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One way to define who is "Evil Rich"

Posted by taxguru on March 6, 2011

From Blog Comix

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Debunking Tax Scams

Posted by taxguru on March 4, 2011

Long time readers will remember that I used to be so frustrated at how IRS chose to deal with promoters of illegal tax evasion scams.  The official IRS policy was to ignore the scams and hope they would disappear on their own.  As anyone could have anticipated, the scam promoters used the IRS silence as proof that their schemes were perfectly acceptable.  I lost count of how many times I was accused of being incompetent or a government lackey by tax protestors because I dared to accuse them of being idiots and falling for illegal scams. 

In a case of better late than never, IRS finally wised up and they now take a more proactive stand against tax evasion scams. 

IRS Debunks Frivolous Tax Arguments

The full 87 page pdf report.

The Tables of Contents of the report give an excellent summary of the idiotic scams people have been trying to use to illegally evade taxes.

Contents-General Arguments

A. The Voluntary Nature of the Federal Income Tax System

  1. Contention: The filing of a tax return is voluntary
  2. Contention: Payment of tax is voluntary
  3. Contention: Taxpayers can reduce their federal income tax liability by filing a “zero return
  4. Contention: The IRS must prepare federal tax returns for a person who fails to file
  5. Contention: Compliance with an administrative summons issued by the IRS is voluntary

B. The Meaning of Income:  Taxable Income and Gross Income

  1. Contention: Wages, tips, and other compensation received for personal services are not income
  2. Contention: Only foreign-source income is taxable
  3. Contention: Federal Reserve Notes are not income
  4. Contention: Military retirement pay does not constitute income

C. The Meaning of Certain Terms Used in the Internal Revenue Code

  1. Contention: Taxpayer is not a “citizen” of the United States, thus not subject to the federal income tax laws
  2. Contention: The “United States” consists only of the District of Columbia, federal territories, and federal enclaves
  3. Contention: Taxpayer is not a “person” as defined by the Internal Revenue Code, thus is not subject to the federal income tax laws
  4. Contention: The only “employees” subject to federal income tax are employees of the federal government

D. Constitutional Amendment Claims

  1. Contention: Taxpayers can refuse to pay income taxes on religious or moral grounds by invoking the First Amendment
  2. Contention: Federal income taxes constitute a “taking” of property without due process of law, violating the Fifth Amendment
  3. Contention: Taxpayers do not have to file returns or provide financial information because of the protection against self-incrimination found in the Fifth Amendment
  4. Contention: Compelled compliance with the federal income tax laws is a form of servitude in violation of the Thirteenth Amendment
  5. Contention: The Sixteenth Amendment to the United States Constitution was not properly ratified, thus the federal income tax laws are unconstitutional
  6. Contention: The Sixteenth Amendment does not authorize a direct non-apportioned federal income tax on United States citizens

E. Fictional Legal Bases

  1. Contention: The Internal Revenue Service is not an agency of the United States
  2. Contention: Taxpayers are not required to file a federal income tax return, because the instructions and regulations associated with the Form 1040 do not display an OMB control number as required by the Paperwork Reduction Act
  3. Contention: African Americans can claim a special tax credit as reparations for slavery and other oppressive treatment
  4. Contention: Taxpayers are entitled to a refund of the Social Security taxes paid over their lifetime
  5. Contention: An “untaxing” package or trust provides a way of legally and permanently avoiding the obligation to file federal income tax returns and pay federal income taxes
  6. Contention: A “corporation sole” can be established and used for the purpose of avoiding federal income taxes
  7. Contention: Taxpayers who did not purchase and use fuel for an off-highway business can claim the fuels tax credit
  8. Contention: A Form 1099-OID can be used as a debt payment option or the form or a purported financial instrument may be used to obtain money from the Treasury

 

Contents-Collection Due Cases

A. Invalidity of the Assessment

  1. Contention: A tax assessment is invalid because the taxpayer did not get a copy of the Form 23C, the Form 23C was not personally signed by the Secretary of the Treasury, or Form 23C is not a valid record of assessment
  2. Contention: A tax assessment is invalid because the assessment was made from a substitute for return prepared pursuant to section 6020(b), which is not a valid return

B. Invalidity of the Statutory Notice of Deficiency

  1. Contention: A statutory notice of deficiency is invalid because it was not signed by the Secretary of the Treasury or by someone with delegated authority
  2. Contention: A statutory notice of deficiency is invalid because the taxpayer did not file an income tax return

C. Invalidity of Notice of Federal Tax Lien

  1. Contention: A notice of federal tax lien is invalid because it is unsigned or not signed by the Secretary of the Treasury, or because it was filed by someone without delegated authority
  2. Contention: The form or content of a notice of federal tax lien is controlled by or subject to a state or local law, and a notice of federal tax lien that does not comply in form or content with a state or local law is invalid

D. Invalidity of Collection Due Process Notice

  1. Contention: A collection due process notice (Letter 1058, LT-11 or Letter 3172) is invalid because it is not signed by the Secretary or his delegate
  2. Contention: A collection due process notice is invalid because no certificate of assessment is attached

E. Verification Given as Required by I.R.C. § 6330(c)(1)65

  1. Contention: Verification requires the production of certain documents

F. Invalidity of Statutory Notice and Demand

  1. Contention: No notice and demand, as required by I.R.C. § 6303, was ever received by taxpayer
  2. Contention: A notice and demand is invalid because it is not signed, it is not on the correct form (such as Form 17), or because no certificate of assessment is attached

G. Tax Court Authority

  1. Contention: The Tax Court does not have the authority to decide legal issues

H. Challenges to the Authority of IRS Employees

  1. Contention: Revenue Officers are not authorized to seize property in satisfaction of unpaid taxes
  2. Contention: IRS employees lack credentials.  For example, they have no pocket commission or the wrong color identification badge

I. Use of Unauthorized Representatives

  1. Contention: Taxpayers are entitled to be represented at hearings, such as collection due process hearings, and in court, by persons without valid powers of attorney

J. No Authorization Under I.R.C. § 7401 to Bring Action

  1. Contention: The Secretary has not authorized an action for the collection of taxes and penalties or the Attorney General has not directed an action be commenced for the collection of taxes and penalties

 

http://rcm.amazon.com/e/cm?t=taxfreeexchacorp&o=1&p=13&l=ez&f=ifr&f=ifr

 

 

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2011 Vehicle Depreciation Limits

Posted by taxguru on March 2, 2011

CCH has the newly announced limits for depreciation on vehicles first placed into service in 2011. 

For passenger automobiles first placed in service during 2011, the deduction limitations for the first three tax years are: $3,060 ($11,060 if bonus depreciation applies), $4,900, and $2,950, respectively, and $1,775 for each succeeding year. For trucks and vans first placed in service in 2011, the depreciation limitations for the first three years are $3,260 ($11,260 if bonus depreciation applies), $5,200, and $3,150, respectively, and $1,875 for each succeeding year.

I checked TheTaxLibrary, and they don’t have Revenue Procedure 2011–21 posted yet.  I will link to it when it shows up there.

UpdateRev Proc 2011–21 (15 page pdf) from IRS.

 

 

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Posted by taxguru on March 2, 2011

From Blog Comix

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Posted by taxguru on March 1, 2011

From Blog Comix

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