Conservative Groups' Lawsuits Against IRS Dismissed

A federal judge has dismissed a pair of lawsuits against the Internal Revenue Service by over 40 conservative groups over the IRS’s handling of their applications for tax-exempt status, according to Michael Cohn in Accounting Today.

Judge Reggie Walton of the U.S. District Court in Washington pointed out in his ruling Thursday that the IRS had changed the way it reviewed the tax-exempt applications and had approved most of the groups, and that federal courts do not allow financial claims against individual defendants in the IRS for constitutional violations.

The lawsuits were filed on behalf of conservative groups such as True the Vote and Linchpins of Liberty by the American Center for Law and Justice.

The IRS has come under fire from conservative groups since last year for using terms such as “Tea Party” and “Patriot” to review applications for tax-exempt status under Section 501(c)4 of the Tax Code. The controversy led to the ouster of the former director of the IRS’s Exempt Organizations unit, Lois Lerner, along with other IRS officials.

The head of at least one conservative organization was dismayed by the dismissal of the lawsuits. “This ruling is offensive to every citizen who believes in equal treatment under the law,” said FreedomWorks executive vice president Adam Brandon in a statement. “It doesn't matter when the IRS bullied conservative groups or if they stopped, the point is that it was done, and the IRS has to be held accountable. Today's decision was the legalization of federal bullying and unchecked discretionary authority, so long as agencies can play the waiting game long enough to correct their misdeeds. The fact that it occurred in the first place was appalling, but the fact that it was excused by the courts was disgraceful."

If you - or someone you know - is considering a filing for tax-exempt status, contact Neikirk, Mahoney & Smith. Neikirk, Mahoney & Smith's tax experts can help you streamline the process and maximize the chances for a prompt approval from the Internal Revenue Service.

Capital Gains for 2014

According to Motley Fool, Clients can avoid paying taxes on long-term capital gains on an asset by either not selling at all or holding onto the property a little longer. You can lower your tax bill by holding the asset for at least 12 months to trigger long-term capital gains rates and not short-term capital gains rates, which are higher. Read the article to know how long-term capital gain taxes will be calculated this year on state and federal levels.
Or if you don't feel like reading something, just call Neikirk, Mahoney & Smith PLLC at 502-896-2999.
-Gary

Lois Lerner Gets Some Payback

In an absolutely hilarious article by Michele Kirk in BizPac Review, conservative activist Jason Mattera recently found himself in a position that a lot of conservative Americans with they could be in as he happened along Lois Lerner walking her dogs.

Unlike a lot of us, though, Mattera had the nerve to say things to Lerner that a lot of us can only fantasize about.

"Mattera brutally pummeled the shamed former IRS director with requests for an apology to conservatives for using the government as a weapon to target them. He taunted her by saying things like “How does it feel to be targeted? You don’t like it do you?”

"Lerner ran for cover to a neighbors house where she knocked, and knocked and begged to come in.

"Oops, it must have been a conservative neighbor because, they wouldn’t let her in!

"When the man of the house finally came around from the back, Lerner told him she had been asking his wife to let her in because the press was bothering her.

"Not hearing what Lerner said to him, the man was still confused."

Mattera explained “She’s trying to get in your house, she doesn’t want to answer questions.”

"The elderly neighbor’s classic response, “I don’t want her in my house.” OUCH!

"Mattera didn’t miss a beat. “I don’t blame you,” he said. “I wouldn’t want her in my house either.”

"Thoroughly scorned, Lerner scurried to another house for cover."

Mattera has a history of ambushing deserving liberals.  His latest book, “Crapitalism” takes them on in writing.

Interesting article from the Old Gray Lady...

"Tax Tactics Threaten Public Funds" says New York Times' Eduardo Porter.

"When the European Commission charged this week that Ireland’s sweetheart tax treatment of Apple amounted to an illegal corporate subsidy, the company said that it had done nothing wrong. Apple executives might have added that whatever they did, they were not alone.

"Corporate tax strategies intended to minimize global taxes, by hook or by crook, are by now standard practice. Google and Facebook move money through Ireland to lower their taxes. Starbucks uses the Netherlands, a practice that is under review by Europe as well."

Here's the rest of the article - definitely worth your time - http://www.nytimes.com/2014/10/02/business/economy/multinational-tax-strategies-put-public-coffers-at-risk.html?ref=todayspaper&_r=0

And if you have questions about this or any tax related issues, call Neikirk, Mahoney & Smith at (502) 896-2999.

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So we're at war again...

Once again, the United States is flexing its military muscle in the Middle East. With Tomahawk Missiles flying and our unveiling to the world of the amazing F-22 fighter plane, one can't help consider the impact all this might have on domestic markets, i.e. your stock portfolio.

Interestingly, it isn't likely to have much effect at all, according to most pundits, and if it does have an effect, it will likely benefit your portfolio of domestic securities. And the professionals at Neikirk, Mahoney & Smith CPAs want you to get the best advice possible.

According to Mark Arbruster in Inside Investing, "With the stock market at an all-time high, we are frequently asked about the situation in Syria, and whether now might be a good time to beat a hasty retreat from stocks.  To address these concerns, we reviewed historical capital markets performance during times of war."

Certainly worth a read at http://blogs.cfainstitute.org/insideinvesting/2013/09/25/u-s-capital-market-returns-during-periods-of-war/

Mark Suster's Great Piece on Startups

Mark Suster is a successful entrepreneur turned venture capitalist. He joined Upfront Ventures in 2007 as a General Partner after selling his company to Salesforce.com. This is a really good read for anyone considering opening a new business.

Suster says he usually tells people that everything he learned about being an entrepreneur he learned by F’ing up at his first company.

"I think the sign of a good entrepreneur is the ability to spot your mistakes, correct quickly and not repeat the mistakes," Suster said. "I made plenty of mistakes."

Below are some of the lessons Suster learned along the way.  Read more
After reading what Suster has to say, check with the small business experts at Neikirk, Mahoney & Smith. 

2014 Statistics of Income Bulletin is available

WASHINGTON — The Internal Revenue Service today announced that the summer 2014 issue of the Statistics of Income Bulletin is available at IRS.gov. 

The Statistics of Income (SOI) Division produces the online Bulletin on a quarterly basis. Articles provide the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue includes articles on the following topics:

Foreign-Controlled Domestic Corporations, 2011. Foreign-controlled domestic corporations (76,793) accounted for a small share (1.3 percent) of all U.S. corporation income tax returns filed for tax year 2011. Collectively, these corporations produced 16.2 percent ($4.6 trillion) of the total receipts reported by all U.S. corporation income tax returns for the year; however, a small portion of these corporations accounted for most of this amount. 

FCDCs accounted for 14.4 percent ($11.7 trillion) of the total assets reported by U.S. corporations for 2011.  

Municipal Bonds, 2011. The municipal bond market was still dominated by the more than 21,000 tax-exempt governmental bonds issued in 2011, raising $297.3 billion in proceeds for public projects, such as schools, transportation infrastructure, and utilities. Tax-exempt bond proceeds totaled nearly $384.3 billion, accounting for almost all (98.4 percent) municipal bond proceeds for the year.

SOI Bulletin articles are available for download at IRS.gov/taxstats. For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, 1111 Constitution Avenue NW, (K-Room 4112), Washington, DC 20224.

If you have any questions, contact Michael Maier at http://nmscpas.com/contact or call (502) 896-2999.

Related Items:          

SOI Bulletin: Summer 2014

Historical Tables and Appendix

Tax Statistics