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Archive for the ‘NewTaxLaws’ Category

Better late than never

Posted by taxguru on December 29, 2015

Despite many predictions that it would be impossible for the current do-nothing Congress to get an extender bill up to the White House before the end if the year, they seemed to have done it, with less than two weeks to spare. 

Considering that many of the provisions are retroactive to the beginning of 2015, it doesn’t give calendar year taxpayers much time to take advantage of the newly restored tax breaks.  With the maximum Section 179 allowance increasing from $25,000 to $500,000, there will most likely be a lot of year-end purchases of business vehicles and equipment.  Remember that the newly acquired assets have to be placed into service before January 1, 2016 in order to be deducted on the 2015 tax return.  Just paying for them by December 31 isn’t good enough.

As I come across them, I will be posting links to as much useful coverage of this newly passed legislation as I can find.

From Tax Foundation: The Twelve Most Important Provisions in the Latest Tax Bill


From AICPA: Congress Passes Extender and Other Tax Legislation

From Spidell:  2015-2016 extenders and new tax laws

From CCH: House Passes Extenders Package

From Congress: Protecting Americans from Tax Hikes Act of 2015

From Western CPE: 2015 Extender Bill Passed By Congress

Posted in NewTaxLaws | Comments Off on Better late than never

New IRS Due Dates

Posted by taxguru on August 24, 2015

As is often the case with the bozos in Congress, they love to slip various tax items into unrelated legislation.  Such was the case with the recently signed Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. 

As part of this new law, some long running due dates for certain kinds of tax returns will be changing in the next year. 

The ones that will likely be most widely felt among the practitioner community are:

Partnerships – Form 1065 (or an extension request) will be due a month earlier than previously, March 15 instead of April 15.  This is no surprise and continues a recent trend to give some distance in time between the due dates of tax returns for pass-through entities and the due dates for individual tax returns (1040s) so that we aren’t scrambling to do all of the tax returns on the same day.   

C Corporations – Form 1120 (or an extension request) will be due four and a half months after the end of the tax year, instead of the long standing three and a half month timeframe.  However, there is an odd exception in the law just for corporations with tax years ending June 30.  Their returns (or extensions) will still be due by September 15, three and a half months after the end of the year.  As a long time believer and advocate of a non-December tax year for corporations, that will mean a lot of due date changes for our clients, except for the several June 30 ones.


Longer Statute of Limitations (SOL)
This highway bill also modified the definition of “Substantial Understatement of Income” that allows IRS an SOL of six years to audit tax returns if the cost bases of assets that were sold were overstated. 

I am often asked how long tax related records need to be retained.  This new provision extends the time you should keep records of assets that were sold to at least six years after the tax returns reporting their sales were filed with IRS.


Forbes had some good recaps of these new changes:

IRS Audit Period Just Doubled From Three Years To Six Years For Many

Many IRS Tax Return Due Dates Just Changed, FBARs Too


For a number of years now, my favorite tax reference source has been The TaxBook.  They recently posted this very informative three page PDF recap of the tax aspects of this highway bill. 

Highway Bill Contains New Tax Law Changes

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

Posted in Due Dates, NewTaxLaws | Comments Off on New IRS Due Dates

New Taxing Schemes

Posted by taxguru on July 3, 2015

Oregon launches program to tax drivers by the mile – Using Big Brother tracking devices to monitor every place we go. That can’t result in anything but more problems.


The Windy City is enacting a 9 percent tax on streaming services. – Starting in the Socialist Utopia of Chicago, and soon to spread to others.

Posted in NewTaxLaws | Comments Off on New Taxing Schemes

Per Mile Tax

Posted by taxguru on May 20, 2015

For several years now, various governmental entities have been threatening to start levying a per mile tax on vehicles because they aren’t satisfied with what they are already taking in at the fuel pumps and toll collectors.

It looks like,Oregon is going to start that process, which will most likely spread across the county. Of course, as is always the case, this will end being an additional tax and not just a replacement for an existing one.

Oregon to test pay-per-mile idea as replacement for gas tax

This issue reminds me of the following verse from George Harrison’s classic TaxMan song.

If you drive a car, I’ll tax the street
If you try to sit, I’ll tax your seat
If you get too cold I’ll tax the heat
If you take a walk, I’ll tax your feet


TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!


Posted in NewTaxLaws, TaxMan, Vehicles | Comments Off on Per Mile Tax

Is there anything the Left doesn’t want to tax?

Posted by taxguru on February 7, 2015

Of course not.  Everything is fair game to the Left, who consider all money to rightfully belong to them, to be spent as only they can do properly.

Former Obama Adviser: We Should Tax Fat People By Body Weight – Jonathan Gruber strikes again.  Can’t you just see how this idiotic plan would play out?  Every April 15, we all go step up on the official Big Brother scale, where we are assessed a tax for each pound we are above the official allowable weight.



Obama Wants Your Retirement Account – I’ve been warning about this scary scenario since the Clinton Organized Crime Family occupied the White House. Every so often, the Left raises a trial balloon of ways for the government to steal some or all of the growing amount of  money in private retirement accounts.  Changing the rules on such things as tax free Roth IRAs has always been a  possibility for our rulers in DC, who have no conscience about reneging on promises.



Posted in NewTaxLaws | Comments Off on Is there anything the Left doesn’t want to tax?

Life Imitating Art

Posted by taxguru on May 6, 2014

George Harrison’s classic song “TaxMan” has long been a motivating force for many of us in this profession. Even though it was intended to be somewhat satirical, with examples of ridiculous taxes that couldn’t possibly come true, some of our Big Government Rulers have always seen that as a challenge, such as in this section of the song. 

If you drive a car, I’ll tax the street
If you try to sit, I’ll tax your seat
If you get too cold I’ll tax the heat
If you take a walk, I’ll tax your feet

I couldn’t help but think of that when I saw this news story from the Left Coast, where eventually nothing will be left untaxed.

Sen. Introduces Bill To Test Out Taxing Motorists For Every Mile They Drive


For those of you who are new to my blog and websites, I do still have an assorted collection of musical artists performing TaxMan on my ScreenCast site for your listening and downloading pleasure. 


Posted in Music, NewTaxLaws, TaxMan | Comments Off on Life Imitating Art

New ObamaCare Taxes

Posted by taxguru on September 17, 2013

A great infographic of many of the new taxes created by the insane ObamCare law.

Click on the thumbnail version below for full size or check out the source page. It’s huge.

  New ObamaCare Taxes photo ObamaCareTaxes_Infographic-700x5592_zpsa9adc47a.jpg

Posted in NewTaxLaws, ObamaCare | Comments Off on New ObamaCare Taxes

Bungee Tax Law

Posted by taxguru on January 12, 2013

During today’s weekly TaxCoach meeting, some folks referred to the hastily drafted and passed new tax law as a bungee to catch those falling over the dreaded Fiscal Cliff that our idiot rulers had created.  That description works for me. 

Over the next several days, there will be a lot of interpretations of the new law published.  I plan to post links to as many of the useful ones as I can; so check back to see what has been added to this post. 

TheTaxBook released this three page PDF summary, which was followed up by this longer (36 pages pdf) version.  Interestingly, this summary doesn’t mention the retroactive increase in the maximum Section 179 to $500,000 for 2012 and 2013; but the longer version does cover it.. 

Spidell has a short summary that does mention the higher Sec. 179 limit.

QuickFinder has this 8 page pdf summary of the changes.

CCH has this 12 page pdf briefing.

Journal of Accountancy’s summary: Congress passes fiscal cliff act

TaxProf Paul Caron has extensive coverage, including a link to download the actual 157 page PDF of the legislation, H.R. 8.

The Waller law firm has this 18 page PDF summary organized by code section number.  The Sec 179 increase is listed under Code Section 315.

From the US Senate Committee on Finance:

The American Taxpayer Relief Act – H.R. 8 (157 Pages PDF)
Revenue Estimates of The American Taxpayer Relief Act (3 Pages PDF)

Summary of American Taxpayer Relief Act Provisions (19 Pages PDF)

6 Things You Won’t Believe That Are In The Fiscal Cliff Bill That The Senate Passed At 2 AM While Most Americans Were Drunk –  Our corrupt rulers can never resist the temptation to toss in several unrelated measures to any bit of legislation they work on.



Posted in NewTaxLaws | Comments Off on Bungee Tax Law

Posted by taxguru on January 1, 2013

Washington Celebrates Solving Totally Unnecessary Crisis They Created –  And our retarded rulers guaranteed plenty more excitement for 2013, by passing short-term patches that will give us more of these self-created fiscal cliffs.  Modern day Keystone Kops are in charge in DC.


Putting America’s Tax Hike In Perspective –  Very illustrative bar graph with the $62 Billion in new annual taxes compared to the $1.089 Trillion budget deficit.  Still, spending cuts are not allowed to be discussed.


Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases –  Spending by our rulers in DC is too sacred to ever consider cutting.


Details of tentative deal that would avert fiscal crisis –  At least our imperial rulers in DC have finally agreed on the proper definition of the Evil Rich who need to be punished; $400,000 of income for Singles and $450,000 for Married Couples.  Welcome back to Marriage Penalty Tax Planning.  Two singles living together don’t get hit until at total of $800,000 in income vs only $450,000 if they were married. 


Liberalism’s $400,000 Problem -Lefties upset over the higher income limit to define the Evil Rich to be persecuted.


Posted in NewTaxLaws, TaxHikes, TaxNews | Comments Off on

From Tax Update Webinar

Posted by taxguru on December 17, 2012

This year, I intentionally scheduled almost all of my annual 40 hours of CPE for as late in the year as possible, with the hope that some settlement of the open tax issues would be wrapped up by now.  Unfortunately, as we know all too well, nothing has been done by our incompetent rulers in DC and we still have a ton of uncertainty as to what the rules will be for 2012, 2013 and onward. 

Once again, I am using CPE Link for most of my live instruction CPE.  I just finished the first four hour section of the 2012 Tax Update by Vern Hoven and he had to hedge a lot, with warnings that several tax provisions that have technically expired as of 12/31/11 may be extended retroactively for 2012 by the bozos in DC, hopefully before the end of the upcoming Tax Season.

As we went through the manual and slides, I found a few of them that I wanted to share here with my readers.


IRS Audit Exposure

This first one is from the IRS’s official report of their examination coverage.  It illustrates that the higher your AGI is, not only will you be hit with higher taxes and lose several deductions and credits, but the bulls-eye on your back for IRS harassment will grow much larger.  Steps to keep your AGI down, such as working with a C corp, make all the more sense.

From Tax Info


New ObamaCare Taxes

We covered some of the numerous new taxes created by ObamaCare that we will soon be dealing with.  One of them is a new Hospital Insurance (HI) tax on the wages and self employment income of the evil rich and is summarized nicely in this table.

From Tax Info



Posted in NewTaxLaws, ObamaCare, TaxHikes | Comments Off on From Tax Update Webinar