Every Saturday, we'll take a look at the top tax stories in the news.
H&R Block Slips Into The Bizarro Universe
Tax prep giant H&R Block made a mistake on their taxes. The news was picked up by Jack Ciesielski, author of the Analyst's Accounting Observer, a blog dedicating to covering accounting news of interest to security analysts and investors. According to Mr. Ciesielski, "H&R Block has crossed over into the Bizarro universe, where up is down, back is forward, and black is white." More news: via Marketwatch.com and NY Times. And still more bad news: California Sues H&R Block over "Instant" Tax Refunds (via AccountingWeb).
Both Sides of the Tax Evasion Coin
Tax fraud promoter Irwin Schiff is going to jail for 13 years after being convicted of "conspiracy, tax evasion and tax fraud charges" and he was ordered to pay the government over "$4.2 million in restitution," according to Kay Bell, author of Don't Mess with Taxes. Tax evasion is defined as using illegal strategies to reduce your taxes. It's completely different than using legal tax strategies, such as saving for retirement and buying a house.
Tax Consequences for Record Jackpot Winner
Dreaming of a mega-million-dollar lotto jackpot? Lottery winners face enormous tax bills. The tax bill on the $365 million Powerball lottery won by eight Nebraska meatpackers is estimated to be $177 million, according to this AccountingWeb article. More news: Jackpot Winners are Melting Pot of America and Financial Planners: Winning the Lottery Isn't Always a Dream (both via Lincoln Journal Star)