I agree with Annette that we tax pros should support efforts at tax reform. I have said time and again that a simpler tax system will not adversely affect my business. If I did nothing but 1040As all day during the tax season I would make more money, reduce my costs and the potential for error and audit, experience substantially less agita, and greatly reduce the number of extensions. And, of course, there will always be some version of Schedules C, E and F to prepare. I also believe that my clients will not decide to do their own returns if the tax system is simplified; they will continue to come to me.
Annette’s guest post reminds me that I promised to write one for Peter as well – which I will do once I have finished with the GD extensions.
* Russ Fox reminds us “You Mean I Have to Pay Tax on my Embezzlement Proceeds?” at TAXABLE TALK.
“Yes, illegal income is just as taxable as legal income. If you embezzle funds you have to report that income as “Other Income” on line 21 of Form 1040.”
I will admit that in 40 tax seasons no client has ever told me – “I guess I better report the $10,000 I got from blackmailing my neighbor about his affair.”
* Russ also reports that there will be a “Tax Amnesty in Colorado this Fall”
“Colorado Governor John Hickenlooper signed a bill authorizing a tax amnesty in Colorado. The amnesty period will be from October 1st to November 15th. It applies to any tax debt owed as of December 31, 2010.”
There are no details posted on the Colorado DOR website yet.
* Over at SAVING TO INVEST Andy attempts to answer the age-old questions – “Am I Saving Enough Money For Retirement and How Much You Should Be Putting Away in 401K or IRA Accounts?”.
As Andy correctly points out -
“Every year you delay saving for retirement could knock tens of thousands off your final nest egg because you miss out on the magic of compounding.”
* Brad Polizzano of TAXES IN THE BACK talks about “Handling Gambling Winnings” in a guest post at THE MISSOURI TAX GUY.
* TAX GIRL Kelly Phillips Erb, now a FORBES blog, discusses a little known and apparently little used tax break for bicycle commuters in “Commuters Win With Cycling Fringe Benefits”.
“Fringe benefits are sometimes thought of as perks. Perks or benefits are generally taxable unless they’re otherwise excluded. As of January 1, 2009, the exclusion from taxable income applies to qualified bicycle commuting reimbursement.”
* And you thought that taxes were high in the US. According to the ST CATHERINES STANDARD in Canada “Tax Freedom Day Hits June 6”.
“It will take Canadians two days longer this year to be free of federal and provincial tax burdens and to start working for themselves, the Fraser Institute said.
Annual Tax Freedom Day falls on June 6 this year, the day Finance Minister Jim Flaherty will retable the federal budget in Parliament.
Tax Freedom Day is a measure to show the impact of taxes on Canadian families. If Canadians had to pay all taxes up front they would have to hand over every penny they earned to the government up to that date.”
The TAX FOUNDATION had previously reported that TAX FREEDOM DAY in the US was April 12, 2011.