Florida has a new law that prohibits wearing saggy pants at school. The bill’s primary proponent, Senator Gary Siplin, handed out belts to students today as a reminder to keep their pants cinched up. Arkansas has similar legislation. See full story on Reuters. Siplin wants to encourage students to dress more professionally so they are on the right track come time for interviews following graduation. In related news, Green Day’s Billie Joe Armstrong was recently kicked off a Southwest Airlines flight for sagging.
Go Hit a Wiffle Ball Today
There are so many great things about Wiffle Balls.
- My kids can’t hit them as far as a hard ball.
- They don’t break windows.
- It’s the only way I am able to throw a curve.
- They’re made exclusively in Shelton, Connecticut
Check out this nice Labor Day story on NPR.
Heightened Enforcement of 1099 Compliance
Politicians are desperately trying to increase revenue without raising taxes. One way to do this is to beef up enforcement of the tax laws already on the books. According to the IRS, the best place to focus these efforts is on small businesses and their tax obligations, specifically their 1099 reporting requirements. The IRS has always had a more difficult time getting money out of the self-employed.
IRS Commissioner, Doug Shulman, recently told a Congressional committee: “the thing you have to remember about the [tax] gap is it’s like a deep shale oil reserve, it’s not money sitting there that’s easily tapped, in many ways we have tapped the easy money… the real answer, the place where we have leverage, is information reporting.”
What this means for the regular taxpayer is that the IRS is going to be furiously ramping up its collection efforts in the coming months. The government seems eager to pour more money into the IRS. According to Commissioner Shulman, each 1 percent improvement in compliance will produce an added $20 billion in revenues. For more details, click here.
Santa has his Naughty List; IRS has PDT Designation
Given the number of contacts the IRS makes with taxpayers day after day, the number of (how shall we say this) “confrontations” is relatively small. Yet there are always those who hope they can find tax relief through nefarious means, including the use of force. And the IRS has fairly elaborate guidelines for handling situations involving dangerous or aggressive taxpayers, including a special PDT (Potentially Dangerous Taxpayer) classification that may be assigned to an account. See IRM 25.4.1.
IRS field officers are instructed to try to avoid in-person contact with PDTs. But if in-person visits are necessary, then they are supposed to arrange armed escort from TIGTA personnel. Regular Revenue Officers are prohibited from carrying firearms or any other weapons, including pepper spray (IRM 5.1.3.2.1 ).
If the act(s) or behavior(s) in question do not rise to the level of “dangerous,” then there is an intermediate designation known as “CAU” (Caution Upon Contact) with its own set of criteria and procedure.
The burden of an IRS tax debt can be stressful, discouraging, even overwhelming. However, resorting to threats or violence is never acceptable. Contact Montgomery & Wetenkamp, and let us demonstrate how the pen is mightier than the sword in getting you the tax relief that you deserve.
State Bar Publication for Teenagers
The California State Bar recently updated its publication entitled When You Turn 18: A Survival Guide for Teenagers. It’s a 16-page publication covering a wide range of legal topics pertinent to teenagers and those who are moving beyond the age of minority. The last time the guide was updated was in 2008. The new version covers some timely topics such as underage drinking, illegal computer downloads, identity theft, sexting, and employer monitoring of emails.
The State Bar plans to release the guide in mid September. If you think your teenager would benefit from a careful study of this guide, simply send an email to 18@calbar.ca.gov and specify how many copies you want and where you want them sent. The guides and the shipping are free. What’s not free is being a good parent; the cost is your time, dedication, and love. So work through the guide together, asking and answering questions as you go.
IRS Mission Statements
The last time I checked, there was no tax relief division of the IRS. But the way their mission statements are worded so warm and fuzzy, one might be tempted to think otherwise. The two primary divisions most taxpayers interact with fall under the Services and Enforcement arm of the IRS:
Wage & Investment Division
The mission of the Wage & Investment Division of the IRS is “to provide top quality service by helping taxpayers understand and comply with applicable tax laws and to protect the public interest by applying the tax law with integrity and fairness to all.”
Small Business / Self-Employed Division
The mission of the Small Business/Self-Employed (SB/SE) Division is “to provide SB/SE customers top-quality service by educating and informing them of their tax obligations, developing educational products and services, and helping them understand and comply with applicable laws, and to protect the public interest by applying the tax law with integrity and fairness to all.”
Note the verbs in these statements. The IRS is supposed to “help,” “protect,” “educate,” and “inform.” In my interactions with the IRS over the years, I do not get the sense that they are doing a satisfactory job of meeting these standards. But it’s an unfair standard to hold them to when, in fact, their true mission is to COLLECT REVENUE.
More on Irene
Today the IRS announced that it is providing tax relief to individuals and businesses affected by Hurricane Irene. So far the IRS is extending relief to certain counties and municipalities in New Jersey, New York, North Carolina, and Puerto Rico. You can visit the IRS website to see if your specific location is on the list. And keep checking back because FEMA will continue its damage assessments, and the IRS will most likely add to this list. If you live in one of the affected counties, then you will be able to postpone filing and paying certain taxes. Also, if you receive a penalty notice, you may call the IRS and they will abate the penalties and interest. If your tax preparer lives in one of the affected areas but you do not, you may be granted an extension as well.