Yearly Archives: 2012

The IRS does not permit electronic filing of US income tax returns for preparers living outside the US. It remains to be seen if they will apply the same rule to FBAR forms. For 2011 FBAR forms should be manually filed as in the past. Failure to file FBAR forms on time may result in substantial penalties.

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According to Rick Raven, deputy chief of IRS investigations, the cases that IRS's criminal investigations unit sends to the tax division have ended up in a 94 percent conviction rate, making it the highest rate of conviction in law enforcement.

The IRS wants to tax the Sonnabend estate on a Rauschenberg that can't legally be sold, on the grounds that law-abiding heirs can always sell on the black market. Huh?

It appears that Sonnabend’s heirs sold off works by Jeff Koons, Roy Lichtenstein, Andy Warhol and Cy Twombly to pay estate taxes of $331 million to Uncle Sam and $140 million to New York State.

But they couldn’t even consider selling what might have been the most famous piece in her collection — “Canyon” by Robert Rauschenberg— because the collage contains a stuffed bald eagle and selling it would be a criminal offense, punishable by a year in federal pen.

Given that restriction, the Sonnabend estate tax return (and three different appraisers the estate hired) valued the work at $0. The IRS says it is worth $65 million and is demanding an additional $29 million in tax and an $11.7 million “gross valuation misstatement” penalty from the estate.

To read more go to:

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WASHINGTON — The Internal Revenue Service today announced availability of thewinter 2012 issue of the Statistics of Income Bulletin, which features preliminary data for 143 million individual income tax returns filed for tax year 2010.

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

• Individual income tax rates and shares. Taxpayers filed 140.5 million returns for tax year 2009. Of those, nearly 82 million (or 58 percent) were taxable, which means that, at the return level, the taxpayer reported total income tax greater than zero. Adjusted gross income (AGI) reported on taxable returns was almost $6.8 trillion, while total income tax was $866 billion.
• Split-interest trusts. Charitable remainder trusts, charitable lead trusts and pooled income funds reported $8 billion in gross income and $121.2 billion in end-of-year assets for filing year 2010.
• Domestic private foundations. For tax year 2008, domestic private foundations reported $526.5 billion in total assets and $49.7 billion in total revenue.  These foundations distributed $42.8 billion in contributions, gifts and grants to the charitable sector.     
• Unrelated business income tax returns. For tax year 2008, tax-exempt organizations filed more than 42,000 unrelated business income tax returns and reported $10.3 billion in gross unrelated business income.  
• Personal wealth. In 2007, an estimated 2.3 million U.S. adults had gross assets of $2 million or more, holding more than $12 trillion in combined net worth. The study used information reported on federal estate tax returns.
• Projections of federal tax return filings. The IRS expects that over 239 million tax returns will be filed during calendar year 2012, of which more than 145 million will be from individuals.

The Statistics of Income Bulletin is available for download at IRS.gov/taxstats. Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).