HR 3962: IRS can disallow a perfectly legal tax deduction if they deem your motive is wrong

Select Democratic members of the 111th Congress ^ | 10/29/2009 | Committee of Secret Congress People

[RushingWater]

Source for the bill:

[RushingWater]

As Heritage Foundation blog translates:

Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.

[RushingWater]

Source for the bill:

HR 3962

[your local physicist]

I would think all these tax increases are DOA in the senate.

[Man50D]

The people can disallow HR3962 and the IRS by passing The Fair Tax Act(HR25/S296) that will replace all federal income taxes with a national sales and abolish the IRS! Fair Tax ping!

[concerned about politics]

IRS deems that the motive of the taxpayer

Oh great. That means Oboma gets to pick a mind reading Czar. Will the madness never end?

[Nachum]

The list, ping

[Graybeard58]

I would think all these tax increases are DOA in the senate.

Why would you think that? The rats are in charge of the senate too.

[goldstategop]

I think the massive taxes and public option just won't sit well with Senate moderates. The bill can pass the House but unless it gets a major rewrite, it won't pass the Senate. Dingy Harry doesn't have enough votes for cloture.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

[Waryone]

Well illegal tax write offs become perfectly legal if a democrat uses them. See Charles Rangel.

[NonValueAdded]

"Do you really think we want those laws observed?" Said Dr. Ferris. We want them broken. You better get it straight that it's not a bunch of boy scouts you're up against - then you'll know this is not the age for beautiful gestures. We're after power and we mean it. You fellows were pikers, but we know the real trick and you'd better get wise to it. There’s no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding citizens? What’s there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced nor objectively interpreted and you create a nation of law-breakers - and then you cash in on guilt. Now, that's the system Mr. Reardon, that's the game, and once you understand it, you'll be much easier to deal with."

Ayn Rand, Atlas Shrugged, Part 2, Chapter 3, Page 404

[OneWingedShark]

>Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.

Sounds almost like a bill of attainder to me... but at the very least it is immoral and, honestly, should cause tax-collectors (IRS agents) to be shot and/or tar-and-feathered.

[businessprofessor]

Here is another gem in the bill:

Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.

These firms will have to justify that some unlikely event caused estimated taxes to not be sufficient to cover tax liabilities. This provision is just an excuse for forcing companies to provide interest free loans to the government.

These provisions are bad news for capital formation. Capital flight and much lower private investment will be accelerating. Why should anyone invest here? The rats want to confiscate your profits and wealth.

[FredZarguna]

Always been the case, believe it or not. The IRS is not obligated to honor its own guidelines or interpretations, nor does it even honor anything like precedent the way real courts do. If today the IRS finds Dick is not in violation of tax law, they may turn around tomorrow and find Jane guilty under exactly the same circumstances, even if the same IRS employees are involved in both cases. Your sole remedy if you don't like that is to go all the way through the process and hope you can get to Federal Court. Most choose to "pay the $2."

[The Comedian]

My ancestors shot revenuers over much less.

There's much to be said for keeping tradition alive...

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[top 2 toe red]

Frightening , but funny!

[mo]

“My ancestors shot revenuers over much less...”

Mine helped overthrow a King for far less....

[Lmo56]

IRS deems that the motive of the taxpayer Oh great. That means Oboma gets to pick a mind reading Czar. Will the madness never end? What about Karnak the Magnificent ??? I hear that Johnny Carson isn't doing very much these days ...

[ThomasThomas]

Is there any other motive other than to pay less taxes?

[USMA '71]

Right out of Charlie Rangel’s committee.