A level playing field? Or scorched earth?

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So, is this a fairness issue- or one designed to augment the coffers of the states?  Many local vendors complain that their markets are jeopardized because they must charge sales tax, while the same products delivered from Amazon are tax-free.   Many states see the revenue potential from taxing Amazon (and other internet company) sales in their domains and salivate with glee.

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A Celebration of Science?

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On the day before my birthday, something phenomenal happened. Leaders from the US Senate, the House, and scientists, researchers, University Presidents, and corporate CEO’s, along with a few other advisors, held a conference.  It was entitled “A Celebration of Science”.   (The website has since disappeared.  However, it has become an annual celebration- you can find events by search ‘celebration of science’.) This from leaders that have seemingly been denying the need for science in our policies.  (What would you call it when climate change and evolution are denied and some believe that a woman’s body exudes something (miracles?) to prevent getting pregnant from a rape?)

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Requiem for a Heavyweight

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The day after tax day… 2007. I am summoned to visit a potential client with a problem. They have been using PCLaw (a superb accounting system for lawyers, accountants, and consultants- i.e., anyone who needs to track and bill time) for several years, a program with which I was and am intimately familiar. We talk and agree that I will assist them to resolve their current problems.

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The Myths of CEO compensation

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I have been having debates with my friends and colleagues for years over executive pay. You, too, have heard me rail that there is no financial or business reason to allow an executive to receive compensation of 100, 200, or 500 times the average pay of the corporation s/he leads. When I was growing up, executive compensation rarely exceeded 10 times the average pay. I realize I am old- but this inflation is not only ridiculous, it’s as dangerous as that obtaining in pre-World War II Germany!

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Toot-toot!

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Many of you know that we provide accounting services, as part of our offerings. That also includes tax planning and preparation. Yes, we believe that everyone has the right to pay the lowest amount of taxes required by law. (No, we don’t believe that gains that private equity firms obtain are “carried interest”, but we don’t make the law, either. Lobbyists do. [Don’t believe for one minute that the American Legislative Exchange Council (ALEC) doesn’t write the bulk of the laws of the states and our Federal government enact. If that were true, those state laws enacted recently would not have such identical verbiage.]) We also work with a few law firms, serving as business advisors and financial managers. One of which is a family law firm. It’s not very unusual for family law clients to want to turn their soon-to-be ex-spouses into the IRS. Another such client specializes in business and employee law, who also have folks who want to turn in various companies for tax fraud. All of this is becoming even more pronounced as folks have  found that Bradley Birkenfeld was provided a $ 104 million windfall for turning in his employer, UBS. And, Mr. B is a convicted felon for refusing to divulge information demanded by the IRS about that same fraud! Most folks had no idea that in 2006 the award structure was changed to afford “tattletales” or “whistleblowers” up to 30% of the collected taxes as an award. (It did take the US Tax Court to impose upon the IRS to follow this law. But, that’s another story.) Form 211, IRS What does it take? Form 211. And, you need the 411 to fill it out. Because if there is not a lucid narrative, legal evidence, and a memorandum of law accompanying the filing, the odds are you will get nothing and your claim will go nowhere. (The IRS is NOT going to do any hard work for you. It’s your potential award.) And, don’t try to include stolen information or attorney-client (or legal tax representative-client) communciations- they are inadmissible. As you can surmise from Mr. B’s award, the claimant does not have to be ‘Mr. Goody Two Shoes’.  But, you can’t be among those who plannned or initiated the fraud, either! It’s also  not a get rich quick scheme. The average time for prosecution and collection of a whistleblower claim can be four years; seven years is not out of the question. Oh… one more very important fact. The award you receive is taxable, subject to withholding by the IRS. However, the fees you pay to a firm like ours to help your prepare the submission are fully deductible- above the line, so your tax is on the net award, not the total award. Happy hunting!Roy A. Ackerman, Ph.D., E.A. Continue reading Toot-toot!

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Game Theory

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I admit it. I’m a radical constitutionalist- who most would term a flaming liberal- because most of us fail to comprehend economics… Yet, I am a moderate fiscal-conservative.  (Oh, my, the term “conservative” linked to Roy Ackerman… What is the world coming to?) Because I know we can’t spend money we don’t have or can’t borrow responsibly. (Come on- that means in times like these, we have to borrow. Money’s way too cheap to not be repairing and rebuilding our infrastructure. If we wait much longer, there’ll be nothing left to repair…) But, I digress… I am a big fan of Steny Hoyer, the Congressman from (the 5th District of) Maryland, the Democratic Whip. (Don’t get me started on where I think he really should be in the pecking order…) On 19 September 2012 (today), he made me aware of a “game” that American Public Media (formed by WGBH [Boston], WNYC [New York, of course], KUSC [as in Southern California], and Minnesota Public Radio [If you can’t figure that out, please go away!]) has made available to us. It’s called Budget Hero – and, trust me, we have very few among our 535 folks under the roof of the US Capitol building. Budget Hero (the game) What Steny said was that it is very important that lawmakers (forget about us citizens)  learn to play this game. Because balancing the budget – and accomplishing objectives- is supposed to be the function of Congress. (Of course, Senator McConnell, with a ‘slip of the tongue’ admitted that the job of his party is to deny Obama a second term- ipso facto, the country be damned.) Go ahead, click on the link above. Check out the game. It’ll ‘learn you’ something. You’ll get the chance to try a bunch of policies out. You can choose those espoused by Mitt Romney. Which will show you how we can go belly up by 2025, because there will only be money for mandatory spending (Medicare, Social Security)- which is why Ryan wants to kill Medicare. (Oh, I know, he’ll give you a few pennies that won’t cover the costs for the insurance you need after three or four years of his program. Like that’s a solution.) Or, you can try those policies advanced by President Barack Obama. Woo Hoo! You win- we only go bust in 2028! Three More Years! Yup. You figured it out. If we can’t compromise and develop some sane plans together (raise taxes on those who make more than $ 250K of TAXABLE income [meaning we are really talking about $ 350K of gross income], cut spending on various items, stop the incredible buildup of Pentagon arms that the Brass don’t want anyway, etc…), then we’re done for. (Kind of what we saw on the silver screen for Mutually Assured Destruction in John Badham’s War Games.) And, the process requires continued diligence. (Now, there’s a novel idea!) And, if we work together to make America the great nation each of us thinks it is, then the economy can soar, we can innovate, and we can make the American Dream a potentiality and not a wistful memory… How about you elected folks? Can you stop playing games with our lives…NOW?????? Roy A. Ackerman, Ph.D., E.A. Continue reading Game Theory

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