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Showing posts from November, 2006

Asset Protection Failure - Man Jailed until He pays Creditors

Asset Protection Failure - Man Jailed until He pays Creditors

11-30-2006 -The unprecedented length of disgraced financier Martin Armstrong's confinement for civil contempt did not violate the law, the 2nd U.S. Circuit Court of Appeals ruled Monday.

Addressing several novel issues of law, the circuit upheld the decision of Southern District of New York Judge Richard Owen to keep Armstrong behind bars until he obeyed a court order to turn over millions of dollars in valuables sought by a receiver overseeing the assets left over from the implosion of Armstrong's Princeton companies.



Milton Friedman, Free Market Economist Dies

Milton Friedman, Free Market Economist Dies

Today was a loss to the country and the economics profession. Nobel prize winning, free-market-championing Milton Friedman, the primary advocate of monetary economic policy, died today at the age of 94. He was a key economic advisor to several presidential administrations, and his free market ideas probably can be credited for why the U.S. economy is so dynamic, flexible, and efficient today. I was always a big fan of Friedman, and it is sad to see him go.

IRS Continues to Attack Taxpayers

IRS Continues to Attack Taxpayers

A new government report concludes in fiscal year 2006 there was a:

7 percent increase in individual audits
18 percent increase in high-income audits
8 percent increase in small-business audits
15 percent increase in collection case closures

The increase in IRS Audit and Collection activity requires preparation and early representation to prevent IRS attacks.

Turbo Tax is Not A Defense to Tax Penalties

Turbo Tax is Not A Defense to Tax Penalties

The U.S. Tax Court has again rejected a taxpayer’s attempt to pin the blame for their negligent tax return on tax preparation software.

On Nov. 9, the court handed down an opinion finding against a petition filed in New Jersey by Henry R. Broderick.

According to court records, the petitioner blamed defects in his income tax return on software that he claimed to use in preparing the Form 1040 return. Broderick, who owns a consulting firm, understated his taxable income by more than $50,000, leaving him with no tax on his 2002 return. However, the court said the blame rested with taxpayer negligence -- which includes failure by the taxpayer to keep adequate books and records or substantiate line items properly.

According to the court, “Such a program is only an aid for preparation of a return and depends on careful entry of accurate information, which petitioner manifestly failed to do. Petitioner admits that he has the education to prepare and r…

IRS Charges More For Installment Agreements

IRS Charges More For Installment Agreements

The IRS has announced that effective Jan. 1, 2007, the following fees will increase:

The fee for new direct debit installment agreements, where payments are deducted directly from a taxpayer’s bank account, will increase from $43 to $52.


The fee for other new installment agreements will increase from $43 to $105.


The fee to restructure an existing or reinstate a defaulted installment agreement will increase from $24 to $45.

IRS Issues 2007 Mileage Rates

IRS Issues 2007 Mileage Rates

The IRS issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

48.5 cents per mile for business miles driven;
20 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service to a charitable organization