IRS has released some of the inflation adjustment amounts for 2012.

IRS Announces Pension Plan Limitations for 2012

In 2012, Many Tax Benefits Increase Due to Inflation Adjustments

Rev Proc 201–52 with all of the details.

CCH’s calculations of the 2012 inflation adjustments are always a handy reference.

A Short History of the Income Tax. One original sin was the separation of the corporate and personal tax, giving lawyers, accountants and the wealthy a chance to game the system. –  From the WSJ.  The final statement sums things up quite well.

“Just as in the late 19th century, the tax code is now hopelessly arbitrary and unfair. It requires a complete overhaul.”

California tax scofflaws may find themselves grounded –  As I’ve long explained, the PRC tax authorities are much more ruthless in collecting taxes than even IRS.  In fact, FTB often trains IRS agents on extremely aggressive collection tactics.  This new law to rescind driver licenses for people owing taxes is the obvious camel’s nose under the tent.  Currently just applicable for big money tax debtors, it can very easily be expanded to anyone else owing the all powerful State government money.  Just one more reason to get the heck out of the PRC.

How to Speak ‘IRS’ Language During an Audit – Some good tips for dealing with IRS. The best tip would be to not deal directly with them and use the services of a professional tax advisor who can stand up to their increasingly belligerent tactics.

IRS Hits Oakland Pot Shop With $2.4M Tax Bill –  Another perfect example of how IRS is increasing its use of underhanded and immoral tactics to steal money from people to feed the unending growth and expense of the Federal government.  To not allow a business to deduct its cost of goods sold just because that product is not currently technically legal under Federal law is insane and will hopefully backfire against IRS.  I don’t have any personal knowledge of this case other than what is in this article, but traditionally, the issue of legality in relation to tax law was set by local standards; not the overreaching Federal laws.

We’ll never see the IRS charge the same as the Federal Reserve charges its banks (0.00% to 0.25%), but it’s good that they are at least cutting us some slack; unlike some State tax agencies that never change the double digit interest rates they charge their taxpayers. 

Interest Rates Decrease for the Fourth Quarter of 2011

The Internal Revenue Service today announced that interest rates will decrease for the calendar quarter beginning Oct. 1, 2011. The rates will be:  

• three (3) percent for overpayments [two (2) percent in the case of a corporation];
• three (3) percent for underpayments;
• five (5) percent for large corporate underpayments; and
• zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

Courtesy of TimeValue Software:

From Tax Info