Tag Archives: IRS

“Nightmare” Republican tax bill brings year-end chaos for homeowners

Homeowners across the country looked to battle the coming $10,000 cap on state and local tax deductions by paying their 2018 property taxes in advance. Now the IRS has announced that only property taxes that have been assessed can be deducted in 2017.

The announcement did little to clarify who can take a deduction now for 2018 taxes.The Service didn’t define what “assessed” means in this case, and with each taxing agency having its own dates and systems for property tax bills, confusion is the byword.

The New York Times and The Washington Post both provided windows to taxpayer angst over this.

The final word — for now — goes to homeowner Brian Lowit of Baileys Crossroads, VA, who wired a payment to his county and then heard that he might not get a deduction. As he said to the Post, “It’s a nightmare. I’m definitely frustrated, annoyed and irritated. The rush to get that bill done screwed everyone up. It’s insanity and it’s stupid.”

Write a massive tax bill in secret and hold no hearings on it. What could go wrong?

IRS excels at beaurocratese when it screws up

If you sent in an employment tax payment at the April 18 deadline, you did what you were supposed to.  But the IRS sent out notices to many filers that the deposits were late. How did the IRS characterize its own screw-up?  Like this: “Many taxpayers who made employment tax deposits on Monday, April 18,… Continue Reading

ObamaCare tax prep requirements are catching subsidy recipients unaware

The Affordable Care Act made preparing and filing tax returns even more complicated last year (I know, you’d think that wasn’t possible) because of the gymnastics involved in running health insurance subsidies and credits through the tax code. Now we’re learning that thousands of people might lose their health insurance subsidies because they didn’t file… Continue Reading

Hastert and FIFA cases prove the oldest rule in the book: Follow the money!

What does Dennis Hastert’s indictment on apparently Very Very Bad Horrible Terrible Behavior (kudos to Kaili Joy Gray of Wonkette) and the FIFA bribery and kickback scandal (New York Times version here) have in common? They both in part involve people charged with trying to hide or disguise transfers of money—something that is of tremendous… Continue Reading

Is that friendly tax pro really an undercover federal agent?

Today’s nominee for Stuff You Just Cannot Make Up: The New York Times reports that officers from more than three dozen agencies have posed as business people, welfare recipients, political protesters and–yes–even tax professionals, as part of undercover investigations. “At the Internal Revenue Service, dozens of undercover agents chase suspected tax evaders worldwide, by posing… Continue Reading