Posts Tagged ‘taxes’

Why would the IRS be outsourcing tax audits to a private law firm?

Sen. Orrin Hatch wants to know why the Internal Revenue Service has hired Quinn Emanuel to assist in auditing Microsoft, with the power to compel sworn testimony [Sean Hackbarth, Institute for Legal Reform] For a sampling of the complications that can arise when governments hire outside law firms to prosecute tax cases, see our coverage of the Mississippi/MCI case or, in another part of the forest, the IRS’s periodic experiments with using private debt collection lawyers.

A new screen for religious-school tax exemption?

In 1983 the U.S. Supreme Court ruled that Bob Jones University in South Carolina could be denied an otherwise applicable tax exemption because of its then policy of forbidding interracial dating among its students; since then, despite much speculation, there has not been widespread yanking of exemptions from other institutions over widely disfavored or execrated but otherwise not unlawful internal policies. Now an exchange between Justice Samuel Alito and Solicitor General Donald Verrilli, at Tuesday’s oral argument in the gay marriage cases, is raising some eyebrows. Verrilli’s comments, if seen as reflecting considered Obama administration policy, might be seen as leaving the door open to wider denial of exemptions. [Sarah Pulliam Bailey, Washington Post; Michael Greve, Library of Law and Liberty]

Tax arguments you can count on to fail

For our folk-law category, a list of sure-loser arguments on behalf of tax non-compliance, including “Paying federal taxes is optional,” “Wages are not ‘income,'” “I got paid in paper money, which is not taxable,” and “You can only tax U.S. citizens, and I just seceded,” all of which are good for amusing tax professionals but not for keeping you out of jail. [Lowering the Bar]

Update: Social Security still trying to collect decades-old parental debts

“The Social Security Administration, which announced in April that it would stop trying to collect debts from the children of people who were allegedly overpaid benefits decades ago, has continued to demand such payments and now defends that practice in court documents.” Robert Vogel, an attorney for clients whose refunds were seized, charges: “Their intention was to get the press off their backs and then go back to collecting their money. It’s just shocking that they believe that when someone turns 18, they automatically assume a crushing debt that was incurred by someone else.” [Marc Fisher, Washington Post; earlier here and here]

Banking and finance roundup

“Shall guarantee to every State …a Republican Form of Government”

No, the Constitution’s Article 4, Section 4 “Republican form of government” clause doesn’t forbid the voters of Colorado from enacting a ballot measure (the “Taxpayer Bill of Rights,” or TABOR) that bars representatives from raising taxes without permission of a popular plebiscite [Ilya Shapiro and Julio Colomba, Cato, SCOTUSBlog, earlier]

Politics roundup

November 20 roundup

  • More Than You Wanted To Know: favorable review of new Omri Ben-Shahar and Carl Schneider book on failure of mandatory disclosure regimes [George Leef, Cato Regulation, PDF, related earlier here and here]
  • Colorful allegations: “Tampa lawyers can be questioned about DUI setup claims” [Tampa Bay Times]
  • Intimidation the new norm: FCC head blockaded at his D.C. home to pressure him into OKing net regulation scheme [Washington Post; related, Sen. Mary Landrieu because of her support for Keystone pipeline; earlier here, here, here, here (Boehner, Wal-Mart, etc.), here (businesspeople), here (SEIU and bankers), here (Boston teamsters), here (Google), etc.]
  • Speaking of net neutrality debate, Jack Shafer (“You can’t build a better Internet out of red tape”) and Richard Epstein;
  • “FAA’s Slow Pace Grounds U.S. Drone Makers” [Friends of Chamber]
  • OECD deal could smother tax shelter competition, which might be good for rulers, if not necessarily for the ruled [Alberto Mingardi]
  • “$100/month Upper East Side tenant loses suit to raze high-rise neighbor” and the best bit comes in the last sentence [NY Daily News]