Comptroller applicant withdraws more than $34,000 federal tax lien
There is one city comptroller in Grand Rapids that is withdrawing from consideration following a MLive inquire about a federal tax lien for his property.
The comptroller applicant named Mark Pospiech disclosed delinquent city income taxes on his application. Supposedly, he also owns $34,813 in federal income tax for 2009-2011, according to a tax lien that was filed in November of 2012 with the Kent County register of deeds.
Jerry Czaja, the county’s chief deputy register, says that it looks pretty clear that Pospiech didn’t pay his 1040 tax. When a person doesn’t pay their 1040 tax, the federal government will file a lien in the office, and the lien will become attached to any interest they have in any property. Currently, it doesn’t seem like a discharge will be recorded to release the lien.
Pospiech was one of the three applicants for the position of comptroller that was vacated when Donijo DeJonge stepped down from the position in December. He responded to MLive calls about the talked about lien with a written statement that he is going to withdraw from consideration of the comptroller position.
Pospiech said that throughout the application and interview process for the comptroller position, he said that the focus of the Press was more on his situation, eclipsing his abilities for the position. He believes that there are a variety of factors that have led to his current tax issues, but those factors are personal, and shouldn’t be drawn out by public opinion.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: avoiding taxes, corporate tax, federal tax, federal tax fraud, filing taxes, income tax, tax code, tax fraud
Oregon’s budget increased because of federal tax hike on wealthy
Oregon lawmakers delivered some great financial news this past Friday, allowing some room to breathe with the budget.
The state’s economists have said that the state revenues are supposed to come in at $162 million higher in the latest biennium because of the tax increases on the wealthy that was implemented by Congress. The tax increases will have an effect on filers in 2013, which influenced a sell-off of assets at the end of 2012. This gave a sudden increase to state tax receipts.
The sell-off will eventually lead to a reduction of $75 million in the revenue outlook for the next two years. Adding it up, the lawmakers will have about $88 million more to use for Oregon as they start to develop a budget for the 2013-2015 biennium. This is not a bailout, but rather a difficult choice that had to be made. Oregon has experienced some bad news in its finances in the past four years, and it’s nice to have this good financial news drop on them.
Senate President Peter Courtney mentioned that this forecast is a positive net gain because every single penny will help Oregon, parting the clouds a little to help the sun shine enter.
Overall, Oregon’s state general fund is supposed to hit around $16.6 billion for 2013 through 2015. That’s about a 9% increase from the current budget of $15.2 billion. There’s expected to be larger tax collections in the new few months because of higher earners pushing more of their income into 2012.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: corporate tax, federal income tax, federal tax, income tax, oregon tax, tax code
Proposal To Simplify Tax Codes For Small Businesses
Simpligy the Tax Code for Small Businesses
The Chairman of the House Ways and Means Committee wants to help small businesses by revamping the tax code. He has submitted a proposal to simplify tax compliance. The draft addresses several areas so that business owners can have a better idea of what they will pay on a yearly basis. The changes include a simpler formula to determine the tax code, additional time to submit returns and a permanent tax incentive that lets them deduct the expense of new equipment.
The Tax Foundation, a research group from Washington, D.C., reported that businesses are hesitant to invest. This is a result of a requirement that states that business expenses should be written off over a period of several years or perhaps even longer. This requirement limits a business by allowing it to deduct only a portion of its investments directly. The rest of the investments are to be deducted over a lengthy period of time that is contingent on somewhat confusing rules.
Strengthen the Economy & Increase Wages
Controller for BedFord Machine & Tool, Brian Pemberton, noted his appreciation for laws that help his business save money. The funds saved can be reinvested back into his business through additional jobs or increased capital. He added that the money aids not only in the growth of his own company, but it also can be put back into the economy.
Another section of the proposal simplifies the tax laws that apply to sole proprietors, partnerships and S-corporations. Options could be to revise current laws or to update those laws with a new process. Because of the major role they play in America, small businesses should be a large consideration in tax reform legislation. So far, the new proposals have been met with a good response from many small-business professionals. President Barack Obama has included several changes to the draft.
An Unbiased Tax Code for All Business
The nation’s largest group of tax attorneys feel that the changes to the tax reform are progressing well and they agree with the recent proposals. A spokesman for the organization explained that the bi-partisan involvement in putting together the draft has improved the proposals. The overall purpose of the bill is to make the tax code unbiased for businesses across the board, no matter their size. A spokeswoman for the National Association of Manufacturers added that simplifying the tax code will help the economy since the complications of the current system could mean that America is left behind in the global economy.
The draft added several key components, such as increasing the amount small businesses can use in cash accounting and increasing deductions for start-up costs. The small-business controller further observed that as complications have increased in the last two decades, the government needs to update the regulations accordingly. A streamlined tax code will help businesses compete effectively in today’s market.
Peter Wendt is a blogger interested in tax law. In need of a experienced tax attorney in Austin? Wendt highly recommends you visit http://johnmcduff.com.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: small business, tax code, tax compliance, tax law