Tax Guru – Ker$tetter Letter

Taxpayer Watchdog Demands Ethics Probe of Republican Senator – Corporate executives are prosecuted when they plunder their companies. When our rulers do the same thing, it’s considered just another perk of the job. Anyone who wasn’t already wealthy before going to DC is almost guaranteed to come out stinking rich when they leave. How many more reasons do we need to see how important term limits are?

Watchdog: About 400,000 Use Tax Dodges – I have no idea how many people are using offshore accounts to hide income; and the truth is that the IRS has no idea either. Whenever I have contacted IRS personnel to ask how they calculate their estimates of the tax gap of uncollected taxes, they admit to me that they have no way of knowing any such thing with any level of certainty and their figures are just SWAGs (scientific wild ass guesses). I’m sure this 400,000 figure is nothing more than that and is intended to attract more attention (and money from Congress) than the more probable figure of something like 10,000. Luckily for the IRS, they are never required to substantiate their figures by any of our rulers or anyone in the media who just accept everything they are given as gospel.

Oops, wrong number – Be careful who you call for tax advice.

In additional to scrambling for Christmas presents this time of year, many people are also on the lookout for tax deductions. Dealers selling heavy trucks & SUVs should be swamped until New Year’s Eve as people scramble for that huge deduction.

It’s also time for my annual reminder of another less expensive year-end tax deduction — prepaying your tax preparers for next year’s work on this year’s tax returns. Sending them a check before January 1 will allow you to get the tax savings from that deduction a whole year earlier. Unless you plan on sending your preparers a huge amount (such as $100,000), it shouldn’t cause them any tax problems because that money will almost certainly go right back out for expenses on their books. Traditionally, this time of year is the leanest for income in tax prep offices, yet high in expenses as payments are required for next year’s software, forms, classes and reference materials.

Amazingly, there are lots of people who think this way. They like to flush money down the toilet just so they can deduct the loss. There is a very appropriate name for such people – Idiots.

A looming tax battle in Virginia

Social Security Reform: Saving the system, saving grace

Online Financial Crime Headed From Bad to Worse

Spitzer overboard – Not everyone is impressed with the NY Attorney General’s rampage against mutual funds.

Pricey House for Salvation Army Official Assailed – Not very consistent of the image most of us have of the SA.

Generalized Welfare – The terribly exploited phrase that big government fans use to justify their control over every aspect of our lives in this country.

The party of big spenders – Bush and the GOP are doing everything they can to co-opt the traditional DemonRat issues, including earning this nickname.

The Right to Shut Up and Pay Your Taxes – Removing freedom of speech from the Constitution is a very dangerous trend. It’s not just the treasonous Supreme Court that’s responsible. All of the rulers in Congress who voted for this muzzle on free speech are equally to blame, as is George W. Bush for signing it into law instead of vetoing it as he is obligated to do under his oath of office. Our founding fathers are definitely spinning in their graves over this desecration of their First Amendment. When it’s become illegal to criticize our elected officials, the American Revolution against tyranical rule by royalty sort of seems like a wasted effort.

Tax cuts may push some families into AMT trap – Actually, it would be good if more people saw what an insane tax this is and demanded that our rulers eliminate it. It seems that until the number of victims reaches a certain critical mass, it will just be perceived as a tax on the evil rich, who deserve no tax breaks according to “popular wisdom” (an oxymoron if there ever was one). Another plug for the Reform AMT group seems appropriate right here.