Tax numbers Feed

Attention, tax preparers. Next week is a big one. The filing extension deadline is Tuesday, Oct. 15. Then the very next day, the renewal season opens for paid Preparer Tax Identification Number (PTIN) applications and renewals. Also note that while there won't be any requirement to pay a user fee to obtain or renew a PTIN, this likely is the last time that the identification number assignments will be free. Last week, as the U.S. Supreme Court began its new term, the justices decided not to hear the case that reinstated the fees for PTINs. That means the ruling affirming... Read more →


The Internal Revenue Service and its Security Summit partners have made major strides in recent years in fighting tax-related identity theft. Much of the effort has been in educating taxpayers and businesses about ways to recognize and avoid scams and other tax ID schemes. The IRS also has improved the way it works with taxpayers who do fall victim to identity thieves. Now Uncle Sam is expanding a way that taxpayers can be more proactive in fighting identity theft. The IRS' opt-in Identity Protection Personal Identification Number (IP PIN) now is available for the 2020 tax-filing season to taxpayers in... Read more →


via GIPHY The Kansas City Chiefs, with its star quarterback Patrick Mahomes, is among the handful of teams that National Football League watchers say have a shot at winning Super Bowl LIV next February. But the Missouri professional football team could be facing a tougher fight off the field. Last week, the Chiefs' attorneys argued before the Missouri Supreme Court that most of the NFL team's expenditures on items to renovate Arrowhead Stadium almost a decade ago should not be subject to the state's sales tax. This current court tax battle, which started in 2014, is due to an appeal... Read more →


Law enforcement officers across five U.S. federal agencies successfully concluded a four-month investigation this month with the arrest of 281 people allegedly involved in global email scams. The scams, officially known as Business Email Compromise (BEC) schemes, are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Most of the alleged cyber criminals, 167, were arrested in Nigeria. Insert your own fraudulent prince email comments here. Another 74 people in the United States were taken into custody. The remaining arrests were made in France, Ghana, Italy, Japan, Kenya, Malaysia, Turkey and the United Kingdom.... Read more →


Darth Maul apparently — spoiler alert — was killed in The Phantom Menace, but later showed up in subsequent Star Wars productions. His persistence is akin phantom investment transactions that are created simply to lower multinational companies' tax bills. (Photo via Lucasfilm) What I consider the real Star Wars trilogy came out when I was in college. That's why I've not bothered to see any of the subsequent sequel/prequel movies. But they came to mind last week when the International Monetary Fund (IMF) and the University of Copenhagen released a new study on the growth of so-called phantom capital and... Read more →


Al "Scarface" Capone at his sentencing for tax evasion. Back in the Prohibition Era, federal agents — notably those from the Internal Revenue Service — took down the notorious gangster. The tax agency's Criminal Investigation agents are celebrating their 100th birthday this year. (Photo courtesy All That's Interesting: 25 Al Capone Facts) The United States' tax system is based on the premise that all income is taxable, including illegally earned income. Our tax system also relies on the voluntary reporting of that income, including ill-gotten gains. But human nature being what it is, that doesn't always happen, even with legally... Read more →


The Trump Administration's latest round of tariffs that took effect today, Sept. 1. The additional 15 percent tariff on around $300 billion worth of Chinese goods as varied as batteries, cereal bowls, coals, pajamas and human hair. Kai Ryssdal, host of APM's Marketplace (which I listen to on my local NPR station KUT-FM), took a look some of the industries affected. Actually, since it's radio, the show enlisted Marketplace's foreign editor John Buckley and his sonorous British-accented voice to read some of the items that now cost more. The full list is 122 pages long so, as Ryssdal notes, the... Read more →


When California last year joined the literal growing ranks of states that have legalized marijuana, initial projections were that the state soon would be raking in $1 billion annually from weed-related taxes. That apparently was a pipe dream. The report on Golden State cannabis excise taxes collected between April and June was just $74 million. That disappointing revenue amount is this week's By the Numbers figure. Even more discouraging, California Gov. Gavin Newsom's office sharply scaled back projected tax dollars from the state's legal weed market. That's been the case in other states, too. In pushing through legal marijuana, both... Read more →


Arizona home to be auctioned to pay federal tax debt. I've seen a lot of estate sale signs lately. Either it's an indication of the changing demographics of my part of Austin or folks are trying to fancy up their garage sales. An estate (or renamed garage) sale basically is a way to dispose of most of an owner's property either because family doesn't want their deceased relative's items or the goods need to be sold to make a move easier. Uncle Sam regularly holds his own versions, but in many instances these government sales are to settle tax debts.... Read more →


This February 2016 photo on Twitter of Donald J. Trump signing a tax return is one of the few, and unrevealing, looks we've gotten of his federal filings. The focus of Donald J. Trump and his White House change quickly. Issues that were boiling over just days ago quickly get pushed to a back burner by something else that's hotter. But some of those old topics are still simmering. And one of them, Trump's tax returns, saw the heat turned up a bit recently. It was, however, a former college student, not Trump, who was put on the hot spot.... Read more →


Image courtesy U.S. Coast Guard via Twitter Today is the birthday of one of America's earliest tax collectors, the U.S. Coast Guard (USCG). That's right. The force that we know as the coastal defense and maritime law enforcement branch of the United States Armed Forces had its beginnings as Revenue Marine. It was created by Alexander Hamilton on this day 229 years ago. Its job was to collect taxes at U.S. seaports. Lin-Manuel Miranda did drop a few tax references into his smash Broadway musical, but unfortunately for us tax and seafaring geeks, he didn't elaborate on our first Treasury... Read more →


Historic Saratoga Race Track main stands as depicted on a 1907 postcard. (Scanned by Dave Parker; available via Wikipedia Commons) Remember Tax, the horse that ran in this year's Kentucky Derby? The 3-year old gelding didn't fare so well at Churchill Downs, coming in 14th. He did better in another Triple Crown race, coming in 4th in the Belmont Stakes. On Saturday, July 27, Tax finally notched another win. Tax pulls off the upset in the G2 $600K Jim Dandy! pic.twitter.com/AAmPOqwBiz — TVG (@TVG) July 27, 2019 He took the Jim Dandy in Saratoga Springs, New York. It was Tax's... Read more →


Mortimer M. Caplin was the 34th commissioner of the Internal Revenue Service. He passed away on July 15, 2019, at age 103. (Photo courtesy Caplin & Drysdale via Wikipedia Commons) Fifty years ago this weekend, two Apollo 11 crew members became the first people to set foot on the moon. In doing so, the National Aeronautics and Space Administration (NASA) fulfilled the dream/challenge that President John F. Kennedy had issued in 1961 of "landing a man on the moon and returning him safely to the earth." While Kennedy didn't live to see that historic accomplishment, another event last week made... Read more →


If the changes to Form 1040 this filing season frustrated you, there's some good news and some bad news. The good news is that the Internal Revenue Service is revising the Form 1040 to be used for 2019 tax filings. No, it's still not quite a postcard. But there will be fewer schedules to file — three instead of six — if your taxes are a bit more complicated. The bad news is that many of us still have to fill out those schedules (and the accompanying forms for additional tax break claims that remained) instead of having things on... Read more →


Much is made of the United States' voluntary compliance tax system. The IRS depends on every taxpayer to honestly and accurately report his or her earnings and figure the correct tax due on the amounts. Apparently, we agree with the self-reporting system, with most taxpayers saying cheating on taxes is wrong. Of course, part of the reason we look askance at fudging Form 1040 figures is because we're afraid the IRS will catch us. However, our fear of a tax audit might be exaggerated, according to the latest IRS Data Book. Fewer return reviews: Audits, or examinations as they're called... Read more →


If taxpayers agree with the National Taxpayer Advocate that getting tax help from the Internal Revenue Service is terrible, you might expect folks to transfer their frustration to their returns. Unable to get the answers to their tax questions, they could say, "To hell with it. I'm just putting whatever I want on my 1040." The latest IRS taxpayer attitude survey, however, says that in most cases that's not the reaction. A notable majority of taxpayers say cheating on taxes is wrong. Tax cheating is wrong: Every year, the IRS releases its Data Book, which contains information from the prior... Read more →


Sometimes justice does prevail. Last week it arrived along with a dose of schadenfreude from all us who've paid, albeit usually grudgingly, our taxes over the years. On Friday, June 21, Virginia tax attorney-turned-lobbyist James F. Miller pleaded guilty to willfully filing a false tax return. And Miller wasn't just any National Capital area tax attorney. He was former employee of the Department of Justice' Tax Division. Again, schadenfreude. Six-digit tax bill on under-reported millions: The amount of money involved in Miller's case also is impressive. Miller, 67, under reported his gross income on his 2010 through 2014 tax returns... Read more →


The Internal Revenue Service wants the money you owe. It prefers you pay your taxes on time and in the conventional manner. But Uncle Sam's tax collector is not averse to working with delinquent taxpayers so that it can get the due taxes without an undue hardship on the debtors, such as via an installment payment plan. There are, however, limits as shown in two recent U.S. Tax Court cases. Within weeks of each other, two companies on opposite sides of the country, found their efforts to pay their very large tax bills over time overruled for basically the same... Read more →


James Holzhauer's epic winning run on Jeopardy finally came to an end, leaving him with winnings of almost $2.5 million. The take fell just short of the television game show's record winnings, but neither Holzhauer nor the tax collectors who'll get a nice chunk of the cash are complaining. James Holzhauer finally learned you can't win 'em all. It's been a good week for gamblers. For tax collectors, too. A 66-year-old North Carolina retiree came forward to claim the $344.6 million Powerball drawing, which he won thanks to numbers from a fortune cookie. A yet-to-be-announced lottery player in San Diego,... Read more →


The Internal Revenue Service did do away with two versions of Form 1040 and shortened, a bit, the lone document we now use to file our annual tax returns. But the tax agency went the other way with Form W-4. This form, officially titled Employee's Withholding Allowance Certificate. is what we give to our bosses to ensure that the correct amount of income taxes come out of our paychecks each pay period. Now instead of a brief, 10-item form, the IRS' W-4 proposed revision takes up a full letter-sized page. And while there are just seven boxes to fill out,... Read more →