Attorney-at-Law

LOVING AND MONEY – PART DEUX

In Uncategorized on 08/16/2019 at 00:44

The title of this petit opuscule derives from the time that Judge Boasberg and DC Cir put the slug on Doug Shulman and Dave Williams, ex-IRS Com’r and RPO honcho, respectively, when they tried to regulate preparers. Congress, which could have solved the problem, of course did nothing, and did it very well, rather like Sir W. S. Gilbert’s House of Peers.

I’m not going to expatiate on ex-Ch J L Paige (“Iron Fist”) Marvel’s opinion in Todd Myron Moore, 2019 T. C. Memo. 100, filed 8/15/19.

I just got home from the Stadium, where I was watching the Cleveland Indians score 19 (count ‘em, 19) runs on 24 (count ‘em, 24) hits, against the Yankees’ 5 runs on nine (count ‘em and weep, nine) hits. I’m not a fan of either team, but that game had to make history.

I will say that Todd Myron, ex-civil engineer who ran a multi-state tax prep business, having taken “…online training courses and also attended a 12-week program provided by Jackson Hewitt before he embarked on his new career,” 2019 T. C. Memo. 100, at p. 3, was extremely successful.

Todd Myron’s recordkeeping was of course not of the best, but ex-Ch Judge Iron Fist gives Todd Myron the benefit of the Cohan for the commissions he pays to the actual return preparers. “In his tax return preparation business petitioner hired return preparers throughout the country as independent contractors. Petitioner’s company served as a clearinghouse for processing returns and also provided training and support to his contractors. Each contractor developed and maintained his or her own client base and prepared returns for these clients.” 2019 T. C. Memo. 100, at p. 4.

Myron Todd’s method of compensating himself and his contractors would get us Circular 230 types hanged.

“Petitioner maintained several business bank accounts. When one of petitioner’s return preparers would file a return for a client that generated a tax refund, the refund was deposited into one of petitioner’s bank accounts, which petitioner referred to as a third-party bank account and appears to have treated as an escrow account. Petitioner would then take from the client’s refund the agreed-upon preparation fee, which would be deposited into another of petitioner’s business accounts, and the remainder would be paid to the client. From the preparation fee petitioner would then pay a commission to the individual return preparer, ranging from 60% to 90% of the preparation fee depending on the return preparer’s expertise and client base. Petitioner would retain the rest of the preparation fee.” 2019 T. C. Memo. 100, at pp. 4-5.

I need not, of course, remind my readers, positively jagged with sophistication, of the provisions of 31CFR§10.31(a): “A practitioner may not endorse or otherwise negotiate any check (including directing or accepting payment by any means, electronic or otherwise, into an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to a client by the government in respect of a Federal tax liability.”

But of course such unenrolled types as Todd Myron and his cohorts may do so with impunity.

I’ll spare you the rant.

 

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