Written by: Theodore M. David, Chair, Tax Law Committee
Current Items:
- What is the Matter Alice?
- Just Do It
- New NSA Man at IRS
1. I’m late, I’m late, for a very important date! No time to say Hello, Goodbye, I’m late, I’m late, I’m late. If you care to remember your childhood, somewhere in your gray matter you will recall the White Rabbit in Alice in Wonderland whose obsession with time is a prominent symbol in the story. Constantly the rabbit checks his pocket watch and exclaims those words. He embodies the concept of time slipping away and the pressure of keeping up with societal expectations. So is that my excuse for the tardiness of this bulletin? Or is it more the fact that suddenly the legal world is beginning to look a lot like the world of Alice in Wonderland. But time is on my mind at the moment as April 15 is right around the corner. So instead of watching your 401(k) be sliced in half with the destruction of the American economy, focus instead on getting that tax return done and filed by the due date. Sure, if you must, it’s easy to get a two month extension to June 16, as the 15th is a Sunday, by simply asking for it. But remember any amount due and not paid by April 15 will begin accruing interest at the underpayment rate of 7%. Not filing at all gets you in addition a penalty of .5% per month. So just do it. These days, if you insist on being such an uncooperative delinquent you may end up being deported. For those lucky taxpayers who happen to be living and working out of the country who may be contacting real estate sales people to obtain more permanent lodging the law gives you without even asking the June 16 date for filing your return. But if you are still unable to get these things filed by those dates feel free to request an extension which is also automatic to October 15, 2025. The easiest way to get the extension is to request it electronically at the IRS website. If you happen to be somewhere on the planet unconnected to the rest of us, you can complete and mail Form 4868 to the IRS.
2. In keeping with this theme of time if in fact you are one of those taxpayers who insists on overpaying your taxes so that you can get a fat refund when you file your return, the IRS has a series of guidelines to expedite refunds and prevent errors. First, let me say that you may encounter some difficulty getting your refund because the agency which at one time had almost 90,000 employees is down to about 17 as of this writing and they are unmotivated at best. So your refund check may languish for months if not years. But those IRS guidelines merely echo the kinds of obvious problems that are created in filing tax returns. For example: ensure filing status, names; birthdates; Social Security numbers are correct; report all taxable income; answer the digital asset question; sign and date the return and keep a copy of your tax return. Of course these guidelines were generated by AI with no human involvement. Oh yes, please file electronically as the entire staff of tax administration, all 17 of them, are most likely out to lunch most days. But at least they are NOT working from home. The Little Devils.
3. Gary Shapely was named Deputy Chief for IRS criminal investigation starting March 19. In that role he will oversee 20 field offices and 14 foreign posts, including more than 2000 special agents investigating tax fraud and other financial crimes. He started his career with government at the National Security Agency. No one is allowed to know what he actually did there. I’m not sure if he has been fired yet and whether or not there are any criminal agents left at the IRS. I have no security clearance and frankly make this stuff up on occasion as I go. It keeps me sane, Alice.
Questions or Comments should be sent to: Tdavidlawyer@gmail.com