Saturday, August 1, 2009

President Approved “Cash for Clunkers”

NATP

On June 24, President Obama signed HR 2346, the 2009 Supplemental Appropriations Bill for Iraq, Afghanistan, Pakistan, and Pandemic Flu. Contained within this bill is a provision under Title XIII, Consumer Assistance to Recycle and Save Act of 2009 that provides $1 billion for vouchers of $3,500 or $4,500 to be applied toward the purchase or lease of a new fuel efficient automobile or truck. This provision is more commonly known as “Cash for Clunkers.”

The vehicles must be purchased or leased between July 1 and November 1, 2009. To qualify for a voucher, the vehicle traded in must be scrapped, and the purchased vehicle must achieve greater fuel efficiency than the vehicle to be turned in. The amount of the voucher the purchaser is entitled to receive will depend on the type of vehicle purchased and the amount of the increased fuel efficiency.

Make Work Pay Credit


This credit for working people, $400 individuals and $800 for working married couples, is a credit utilized during this year by reducing increments in tax due by 6.2% resulting in possible higher paychecks for those who qualify. Those working individuals that do not receive the full amount or any of this credit during the year may be able to apply for it on their income tax returns. Employers will have generally calculated this change in withholding by early last Spring. You can make changes to your withholding by filing Form W-4 with your employer.

Those that are self-employed may also benefit from this credit if they qualify by adjusting their scheduled estimated payments during the year and filing their 2009 Income Tax Return.

"If you're not eligible for the Making Work Pay tax credit, withholding changes could mean a smaller refund next spring. A limited number of people, including those who usually receive very small refunds, could in some situations owe a small amount rather than receiving a refund. Those who should pay particular attention to their withholding include:

  • Pensioners
  • Married couples with two incomes
  • Individuals with multiple jobs
  • Dependents
  • Some Social Security recipients who work
  • Workers without valid Social Security numbers" (IRS)

Wednesday, May 20, 2009

The DC Madam and the IRS

Montgomery Sibley was the attorney for the D.C. Madam, Deborah Jeane Palfrey. He has written a book about her and the judicial system events that led to her ultimate suicide available now.


Why Just Her

http://www.whyjusther.com


The DC Madam and the IRS

By Montgomery Sibley


One of the untold stories about the D.C. Madam involves the Internal Revenue Service. It was in June 2006 that the Senate Judiciary Committee approved a bill sponsored by committee chairman Sen. Charles Grassley, R-Iowa, authorizing at least $2 million toward the establishment of an office in the IRS criminal investigation unit to prosecute unlawful sex workers for violations of tax laws.


How curious it was then that the IRS immediately found an ally in the U.S. Postal Service which has been investigating since 2000 – but not charging – a minor escort agency in the District of Columbia called Pamela Martin & Associates run since 1993 by Jeane Palfrey.


I will skip over the rest of the story quickly. Jeane’s assets were seized by IRS investigators in October 2006, she was indicted in March 2007, tried in April 2008 and committed what I call court-induced suicide on May 1, 2008. I am sure Senator Grassley was pleased to get such a dangerous criminal off the street, though the IRS did leave 89 other escort agencies operating – and still operating – in the District of Columbia.

The IRS spent thousands of man-hours collecting each Postal Money order sent to Jeane and tracking it back to the escort who sent it. The spreadsheets with this information run to the hundreds of pages. At Jeane’s criminal trial, the IRS agent, Troy Burrus’ testified:


Q. Does Ms. Palfrey’s [Federal Tax] return show gross receipts or net receipts?

A. It shows gross receipts.

Q. And where does it show that?

A. On line one, under part one for the income, it shows the gross receipts.

Q. And what [are] gross receipts, just to make sure?

A. Gross receipts in this instance would be all the income that was received by the business during that year.

Q. And did you compare the tax returns to the bank records for Ms. Palfrey?

A. Yes.

Q. And what did that show?

A. The comparison of the bank records for this year, 2002, show that there was a greater amount of gross receipts than was reported on this line.


Simply stated, Jeane under reported her income for 2002 – and as Agent Burrus’ records revealed for every other year as well. But Jeane was not charged with an tax offenses? Why? I believe it was because such a charge would have opened the door to an intense investigation by Jeane’s defense team as to whether it was to please the powerful Senator Grassley who held their purse strings. Hence, the tax crimes that could have been charged were not charged.


Ah, the IRS acting to appease the powerful . . . who would have thought it!


Monday, May 4, 2009

Adult Entertainment Industry as a Social Taboo

I wrote this argumentative essay a few years ago and thought that this would be an appropriate first non-tax related blog submission. I do believe that it could use a bit of further work as it was written in haste, however the basic idea is really how I am feeling more and more in regard to this topic.

I should state that I am in no way a 'man hater' or hold all men responsible for every injustice in the world. I love and respect men as I do women. I feel that a better world will come from all of us doing our part.

Identification of the Adult Entertainment Industry as a Social Taboo is a Social Construct

I argue that the identification of the Adult Entertainment Industry as a social taboo is a social construct set up to subjugate women both socially and economically.

Before beginning my argument, I feel it necessary to define the terms 'social construct' and 'subjugation' in order to keep clear my points and ideas. As defined by Webster's Dictionary, a social construct is "a social mechanism, phenomenon, or category created and developed by society; a perception of an individual, group, or idea that is `constructed' through cultural or social practice". Webster's also defines subjugation as "to bring under control or conquer".

To be an adult entertainer in the United States of America more often than not means leading a double life. To the outside world, the entertainer is a student, a wife, a mother, a daughter, a sister, best friend, coworker in a mainstream job and even fellow church congregant. When performing within their Adult profession they may be an exotic dancer, escort, phone sex operator, dominatrix, submissive, porn actress, smut writer or any combination of these. The reason for secrecy stems from the fact that there has been created a separate set of social rules for those that demand the product, sex, and those that supply it.

The Adult Entertainment Industry, like any industry relies on the basic economic concept of supply and demand. Without the demand, there would be little reason for the supply. Some statistics from the California's Adult Industry in 1999 found in a white paper created by The US adult entertainment industry trade association, The Free Speech Coalition states the following in regard to video rentals and sales and erotic dancing support the economic demand for the Sex industry.

Adult Video sales and rentals:

  • In stores in the Western Region of the United States (California, Arizona, Oregon and Washington), adult video made up 35.6% of the sales and rentals in stores that carry both general release and adult video. This means that many if not most video retailers depend upon adult product to stay in business.
  • Mail order provides a means for distribution of adult products with minimal intrusion into the community, and substantial privacy for the consumer. A survey of mail order providers conducted by the Free Speech Coalition established that in 1998, there was $200 million in adult video sales, plus additional millions in sales of magazines, lingerie and novelties. The sales of these products generate tax revenue and employment in California which sites most of the product manufacturers.
  • Mail order and related shipping in California generates so much revenue that following the U.P.S. strike, the U.S. Postal Service assigned a special sales staff to encourage the adult industry to keep using the U.S.P.S.

Erotic Dance:

  • The dance industry creates over 20,000 jobs in California, while providing almost $1 billion in revenues.
  • The dance industry brings in an estimated $500,000 to local governments in much-needed tax revenue, most of which goes towards law enforcement.

However, many consumers of sex, hold the entertainers to a separate set of social standards than themselves. They consider this part of their male privilege since most of the entertainment is aimed at the male consumer who is quite often at a higher social and economic advantage. Evidence of this can be seen at strip clubs that are predominantly male-owned and operated. Some have regulations not allowing female patrons to enter unless they are accompanied by a male. Other evidence of the disparity of social standing between the customer and sex worker can be found in the social attitude toward both. Men are lightly, if at all chastised for patronizing a strip club, calling a phone sex operator or keeping an appointment with an escort and yet responsible women legitimately employed are denied housing, loans from financial institutions and employment in non-adult professions. They lose their children in custody battles, are shunned by friends and family and put out of their places of worship simply for attempting to make a living. For many of these women, work in this industry is the only way they can make enough money to survive or pay for their education.

Stating that it is the Adult Entertainment Industry that is creating misogynistic attitudes toward women and is the cause of many of our society's ills deflects the focus off men, thus creating a sense of shame and fear in the entertainers, the majority of whom are women, as they are now left to hold the burden of what is considered a social 'problem'. As a social problem, it is something that is sought to be eradicated. In 2005, Congress created the Anti-Obscenity Squad to combat "the war on porn". Attorney General Gonzales made this a top priority. In one newspaper, an agent was even reported stating, "Honestly, most of the guys (agents) would have to recuse themselves." (The Washington Post, 9/20/05) Yet, these very agents continue to target manufacturers and suppliers of legal pornography that was designed for enjoyment by consenting adults, not that which is considered 'kiddie porn'. Acts such as these only serve to disable those in the industry making them a pariah in society. It also serves to disable them financially, many who are already economically disadvantaged. This keeps the impoverished marginalized, dependent on and fearful of the system, unable to stand up for themselves and fight those who are subjugating them. This system has been defined as the Matrix of Domination. Marilyn Frye (1983), feminist theorist and professor at Michigan State University, states that the Matrix of Domination refers to "a network of forces and barriers which are systematically related and which conspire to the immobilization, reduction, and molding of the oppressed." To better understand how this system of oppression works and is implemented, it is important to understand the Categorization Process (SCCF) in which people are dehumanized in a systematic way in order for subjugation to take place. This system is used for all types of race and gender discrimination. A brief synopsis of the process in four steps is given below:

The Categorization Process (The Creation of the Other)

1) Naming (labeling)

2) Aggregating/Disaggregating
-Lumping and dissecting

3) Dichotomizing (polarizing)
-Creating master and subordinate categories

4) Stigmatizing (dehumanizing, objectifying)
-Through the use of stereotypes in different mediums

The process for my purpose of this paper begins with the naming and labeling of adult industry workers as dirty, immoral, degraded, victims and any plethora of words that negatively describes their profession. The second step continues with lumping all adult entertainers as the labels previously described and then dissecting them into different levels of immorality and dirtiness dependent upon the specific type of entertainment performed. The third step, dichotomizing, puts the consumer in the role of 'master' and the entertainer into the role of 'subordinate'. This gives all the power to the consumer and thus produces a sense that the transaction of money and sex is not one that is equal. Thus, the entertainer is not thought of, or thinks of themselves as a business person deserving of the respect and rights that other business people enjoy. The final category stigmatizes the entertainer and dehumanizes them via various types of stereotypes so that society can disassociate themselves with these now non-humans and thus remove their rights socially without guilt or question. Doing this then opens the door to put the entertainer in an economic disadvantage as they are not able to receive the rights to business that they are entitled.

Identifying the Adult Entertainment Industry as a social taboo is a social construct set up to subjugate women both socially and economically.

-------------

Works Cited:

Frye, Marilyn (1983) The Politics of Reality Trumansburg, N.Y. The Crossing Press.

Powerpoint presentation.Taking Apart the Story: Race, Class, Gender, and Sexuality.

The US adult entertainment industry trade association, The Free Speech Coalition

(1999). White paper entitled: The Truth About California's Adult Industry, found online at Adult Mags Direct: http://www.melonfarmers.co.uk/arwhitep.htm

The Washington Post (9/20/05)
Webster's Dictionary

Thursday, March 19, 2009

Hybrid Vehicle Credits

NATP

The IRS released a listing of 2009 and 2010 model year hybrid vehicles that qualify for the §30B credit. The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

Qualified Hybrid Vehicles

Thursday, March 12, 2009

Balance Due Notice After Payment

NATP

Balance Due Notice After Payment

When an electronically filed return posts and a corresponding payment is not in the system, a notice is automatically generated. Since a payment mailed the same day as the return is e-filed takes additional time to post, notice issuance has increased as the number of returns filed electronically has increased.

In the past several years, the IRS has taken steps to prevent this from happening during the peak filing season. Beginning in June 2009, all balance due notices will be delayed for two weeks to allow any mailed payments to post. This should greatly reduce the number of erroneous notices.

The IRS has also become aware that some notices may be issued when payments have been made using EFTPS. Again, there is a short lag time as the information is transferred from EFTPS to the IRS and, because of the timing, a notice may be issued. The reprogramming in June 2009 should eliminate this situation as well.

Please note that all balance due notices state: If you have already paid your tax in full or arranged for an installment agreement, please disregard this notice. Therefore, if a payment has been sent, no further action is needed unless a second notice is received. These notices may also be avoided by using electronic funds withdrawal for the tax due, interest, and penalties.

Interest Rates Decrease for Second Quarter

NATP

The IRS has announced that the interest rates for tax overpayments and underpayments for the calendar quarter beginning April 1, 2009, will decrease by a full percentage point. The interest rates are as follows:

  • 4 percent for overpayments (3 percent in the case of a corporation);
  • 4 percent for underpayments;
  • 6 percent for large corporate underpayments; and
  • 1.5 percent for the portion of a corporate overpayment exceeding $10,000.