Is the IRS Scandal About to Break Wide Open? – Let’s not hold our breath waiting for our GOP rulers to do anything to punish, or even stop, the DemonRat criminals operating at high places in the government.

The Big 3 Tax Cut Lies That Democrats Keep Telling – Just a few of the many lies promulgated by the enemedia, DemonRats, and RINOs in order to justify stealing huge percentages of money from the producers in this country via the Marxist “progressive” tax rate system.

I’m not holding my breath expecting Lois Lerner and her band of scofflaws to ever be punished for assisting the bHo Regime in using the IRS to attack and persecute political opponents.  However, it’s still great to see that some folks are not yet ready to let the story drop. 

‘Lay it on the line’: Judge in tea party case orders IRS to disclose employee names, reasons

Today, October 17, is the expiration of the automatic six month extensions that were filed with IRS and the States back in April.  While most people have been able to get their tax returns in by now, many have not.  For those folks, it’s not as serious a situation as it may seem, as I explained earlier today in this email exchange with a client.   

From the client:

Subject: Extension for personal taxes

We are still dealing with S’s medical issues and have not been able to finish getting all the information together for our personal taxes. Would you be able to file another extension for us?

Thanks much,

My Reply:

IRS no longer has a form to request additional time to file after the first six month extension expires. 

Late penalties are based on the amount of taxes due with the return.  Nothing due, no penalty.

If you do end up owing money, IRS & DFA will waive the late penalties for Reasonable Cause.  The most common Reasonable Cause that is acceptable justification for late filing is health problems of the taxpayers and/or their family.  As cold-hearted as their reputation is, IRS is actually very compassionate when it comes to waiving late penalties due to health and medical situations.

So, you should focus on getting S well and then worry about your 2015 tax returns. 

Good luck.

Kerry 

The long streak of IRS charging 3.0% on back taxes will end on April 1, 2016, when it bumps up to 4.0%.

The “good” part of this change is that IRS will also be paying 4.0% interest to taxpayers on refunds from such things as amended tax returns.  That’s a heck of a lot higher than banks are paying on savings accounts.

Interest Rates for the Second Quarter of 2016

While I have dealt with several clients over the past 40 years who have relocated between States in order to reduce their tax burdens, a growing strategy is with those who are actually choosing to leave the USA entirely, as described in this article.

Expatriates choosing to leave the U.S. rather than pay taxes

Depending on the results of the 2016 elections, we could easily see an even larger increase in the number of people taking this step rather than continue to be fiscally raped by short-sighted Rulers who see no problem in squeezing their Golden Geese until they can no longer exist.  Atlas Shrugs.

With the dumbing down of our nation’s kids and almost non-existent teaching of American history in public schools, I doubt that very many people recall learning about the infamous 1773 Boston Tea Party, where the colonists protested new taxes on tea

It’s all too rare nowadays when citizens of this country actually take a stand and don’t just bend over and let their supposed Rulers stick another new tax up their rear ends.

I hope the action taken by this group in Chicago are followed all over the nation to at least slow down the growth of Big Brother taxes. 

Chicago sued over ‘amusement tax’ on streaming services Netflix, Spotify

Obama’s Blues for the Middle Class: Let’s Tax Withdrawals From 529 College Savings Accounts

Obama’s Tax Hikes on “The Rich” Would Slam the Middle Class

This is another example of how our rulers in DC have no qualms about willy-nilly changing the tax laws and breaking promises of tax breaks.  Some of you long term readers may recall how I was one of the few tax pros advising against people converting traditional IRAs to Roths and paying actual taxes now for promised future tax free withdrawals.  I warned, just as with similar broken promises with Social Security benefits, our insane rulers in DC have a history of breaking these kinds of promises. I still believe that they will come up with some kind of “means testing” where anyone earning over a certain amount will be ineligible for tax free Roth withdrawals.  That’s what they did with Social Security benefits.

Hopefully, the GOP Congress will prevent this kind of change to 529 plans for education; but this shows that it is in the realm of possibility.

I refuse to refer to this law as the name our insane rulers in DC gave it, ACA.  Over the decades, the bozos in DC have named several laws opposite to their actual details, such as pretty much any “Tax Simplification” act.  This one takes the prize for most oxymoronic title, as anyone who has been paying attention can attest.  The least likely result of this ridiculous legislation will be anything more affordable.  Quite the opposite is a certainty.

New IRS Explanations

21 pages of Obamacare tax instructions, IRS demands ‘shared responsibility payment’ –  The 21 pages are in IRS’s Publication 5187, which can be downloaded here or from IRS’s special page on ObamaCare Tax Provisions.

The New Penalty For Not Having Proper Insurance

Another rude Obamacare surprise awaits

 

ObamaCare fines rising in 2015, IRS prepares to collect

 

I Warned You About Your Tax Refund – Rush Limbaugh once again explains a most likely temporary loophole in the penalty; it can only be taken from refunds and not forced to be paid of there is no refund.

Another great parody from National Report.

 California Implements Nations First ‘Fat Tax’

This is the kind of thing our nanny-state rulers will most certainly be proposing in the near future.  It covers two main priorities of the Left; more money for the government and more control over everyone’s personal lives.