From the category archives:

fix the tax code friday

It’s Fix the Tax Code Friday! This week, there has been a lot of discussion across the internet about “going Dutch” a la the pay-per-kilometer system recently passed in Amsterdam.

So today’s Fix the Tax Code Friday question is:

Should the US consider a pay-per-mile tax system to pay for roads and other infrastructures?

If your answer is no, would that change if the US adopted the Dutch policy of abolishing the current road taxes and sales taxes for cars in exchange for the pay-per-mile system?

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IRS Commish Doug Shulman has not been shy about talking about targeted enforcement. Targeted enforcement – the idea of cherry picking certain target groups to investigate or examine – is nothing new: it’s happened for years. In fact, as a young lawyer, I remember FLPs (Family Limited Partnerships) being called out under the Clinton Administration. But the IRS hasn’t been all that eager to talk about it. Until now.

Shulman has been very open about the fact that it’s happening and very happy to say what’s being targeted. Right now, the IRS seems to be circling the tank around three main areas:

  1. Offshore accounts
  2. Pass through entities (esp s corporations and LLCs)
  3. High wage earners

Areas of targeted enforcement vary depending on what’s happening in the world, who’s in the White House and how many resources are available. Previous efforts have included self-employeds with Schedule C and Family Limited Partnerships.

So today’s Fix the Tax Code Friday question is two-fold:

Do you think targeted enforcement makes sense? And if does, it is fair?

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It’s Fix the Tax Code Friday!

Buoyed by the popularity of the Cash for Clunkers program – and the perceived success of the First Time Homebuyer’s Credit – Congress is considering whether to extend both programs in 2010.

Various bills suggest extending the homebuyer’s credit from six months to a year – and even increasing the amount of the credit to $15,000. And as China, France and Germany each consider extending their version of the Cash for Clunkers programs, some members of Congress are thought to be eying a second version of the plan.

So today’s Fix the Tax Code Friday question is:

Should Congress extend the first time homebuyer’s credit or re-introduce the Cash for Clunkers program? Both? Neither? Speak up, I can’t hear you!

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The IRS crackdown on foreign accounts has been generating a lot of discussion in the blogosphere. Some folks argue that it’s a waste of resources, others argue that it’s been a long time coming.

Today’s Fix the Tax Code Friday question is:

Is the targeting of offshore accounts a fair use of IRS resources? Or should the IRS focus more on collections and reporting inside the US?

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Fix the Tax Code Friday: A Year From Now

14 August 2009

It’s Fix the Tax Code Friday!
Over at Only3Years, Iz contemplated the question of where she might be a year from now. The more I thought about this, the more I thought that it would make a superb Fix the Tax Code Friday…
I’m constantly asked what I think will happen with respect to a number [...]

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Fix the Tax Code Friday: Best for Who?

31 July 2009

This week, there’s been a considerable focus on a number of proposed “sin taxes” including those on soda, cosmetic surgery and plastic bags. In theory, sin taxes are meant to prevent certain kinds of behavior – whether or not they accomplish it is a whole other story.
I realize that nobody wants to pay extra [...]

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Fix the Tax Code Friday: Cuts Versus Tax Increases

17 July 2009

This week, both the feds and states have been struggling with the idea of balancing the budget by making cuts or increasing taxes. Today’s Fix the Tax Code Friday question is:
If you had to choose, would you rather see tax increases or spending cuts? If “spending cuts” is your answer, are there any [...]

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Fix the Tax Code Friday: When Should Private Become Public?

10 July 2009

It’s Fix the Tax Code Friday! News reports continue to focus on the death of Michael Jackson, his memorial and his funeral. Enormous amounts of public resources have been dedicated to policing the memorial service, keeping Jackson’s family away from the press and investigating Jackson’s “alleged” drug use. Comparisons have been drawn [...]

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Fix the Tax Code Friday: Tax Credits for Business

26 June 2009

It’s Fix the Tax Code Friday!
Over the past few weeks, I’ve reported on a number of industry-specific tax credits offered to businesses, including tax credits for the tech industry and for the movie industry. Reports have been mixed as to whether these credits produce any results.
I’m interested to know what individual taxpayers think. [...]

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Fix the Tax Code Friday: What About Amnesty?

19 June 2009

Earlier today, I posted that New Jersey’s amnesty program has been very successful – in fact, more than three times their estimates.
Some of my colleagues have suggested a federal amnesty program might be a good idea, others believe that there might be abuse of such a program.
What do you think? Today’s Fix the Tax [...]

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