Mark Steyn Analyzes “TaxMan”

For his Song of the Week yesterday, Mark chose one near and dear to my heart ever since I started in this business back in 1976; George Harrison’s TaxMan, which originally appeared on The Beatles’ 1966 Revolver album. Long time readers know that I have been collecting and posting various different versions of this song as performed by a wide range of different artists for many years.

It’s been a while since I have added any new ones to my collections, but I still have several audio and video versions in some of my online storage facilities.

There have been several articles discussing the lyrics to the song and how they are still as relevant today as they were in the 1960s. Mark, who is an accomplished songwriter and singer himself, takes his analysis even deeper, going into the possible origins of the music and its beat. The connection to the theme song from the old Adam West Batman TV show seems so obvious now that I’m embarrassed I didn’t notice it earlier.

If, like me, you can’t get enough background info on George Harrison’s timeless classic, check out Mark Steyn’s review of it.

IRS Standard Mileage Rates For 2024

In another year-end tradition, IRS has announced – after extensive scientific research and calculations – what its standard mileage rates will be for next year’s tax returns. These new rates don’t affect the 2023 returns that will be filed in 2024. These new rates will be for the 2024 returns that will be filed in 2025, but will be useful right away for businesses that base their employee reimbursements and customer charges on the IRS rates.

From the IRS news release:

Beginning on Jan. 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 67 cents per mile driven for business use, up 1.5 cents from 2023.
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, a decrease of 1 cent from 2023.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023.

These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.

Just as with the annual inflation adjustments for tax brackets and deductions that I covered a little while ago, there are some items that have been carved into stone by our imperial rulers in DC and are not allowed to be adjusted for changes in the real world costs. Miles driven on behalf of charities have been established at 14 cents since 1997 and I have seen no inclination from anyone in DC to bring that more in line with the business mileage rate of 67 cents. To use the same rate for both kinds of driving would be the sane and logical thing to do; both of which are foreign concepts in the Twilight Zone known as Washington DC.

Since numbers are an obsession of mine – a common side effect of being a CPA – I couldn’t help noticing the correlation between the IRS deduction per business mile and the Post Office’s charge for a standard single ounce stamp. For the year 2000, the IRS mileage rate was 32.5 cents, and it is now up to 67 cents for 2024. USPS charged 33 cents for one ounce in 2000 and is currently up to 60 cents, with multiple increases planned for 2024.

IRS Announces Inflation Adjustments For 2024

Part of the year-end “Holiday Season” in the US is the annual release by IRS of its calculations for the next year inflation adjustments for the many items in the Internal Revenue Code (IRC) that require indexing to the cost of living.

IRS Press Release

IRS Revenue Procedure 2023-34 With Details (30 Page PDF)

Wall Street Journal Summary (11-9-2023)

I want to again voice my long running complaint that there are still several items in the IRC that are dollar amounts that do not get indexed for inflation. The one that I have been seeing all too frequently is the Section 121 exclusion of gain from sales of primary residences. When this was enacted into law in 1997, $250,000 of profit per person was considered to be quite generous.

Now, 26 years later with huge increases in the value of real estate, that fixed dollar exclusion amount isn’t giving much protection to many home sellers. Of course, this wouldn’t be as big of a problem if IRS would allow the cost basis of assets to be indexed for the inflation experienced during the holding period. I have been harping about this injustice since the 1980s, but it’s never gotten as much traction as it needs with our rulers.

Gift Tax Exclusion Increased Again
Besides Income tax related increases, a very important change is the amount of gifts that can be given each year without the need to file a Gift Tax return (Form 709). While the other items that are indexed are allowed to increase by odd amounts each year, the Gift Tax exclusion can only be increased when the cumulative rate of inflation has justified an even thousand dollar bump up. Many people use this limit as an integral part of their long term Estate and Gifting strategies.

This has normally taken three to four years between increases. However, that pace has changed in recent years. The official inflation rate has been so high since January 2021 that, for the third year in a row, we are looking at another $1,000 increase in the annual Gift Tax exclusion. It was $15,000 for 2021 based on the 2017-2020 cost of living. It then increased to $16,000 for 2022, $17,000 for 2023 and it will be $18,000 for 2024.

Calif Taxpayers Have Until Nov 16 To File 2022 Returns

In a very last minute announcement, IRS has postponed the deadline for filing and paying 2022 tax returns for almost everyone in California from the previously established October 16 to November 16, 2023. This applies to everyone in Calif except three counties: Lassen, Modoc and Shasta.

As has long been its policy, the Calif Franchise Tax Board has announced that it is granting the same extra month postponement as IRS has.

IRS Shutdown Songs

Continuing my testing of ChatGPT, I decided to take a stab at its songwriting skills. My first attempt was “Compose a song about the irs shutdown blues.”

In a few seconds, it came up with:

IRS Shutdown Blues
(Verse 1)
Woke up this morning, with news on my screen,
The IRS’s down, it’s like a bad dream.
Taxes and refunds, all in a queue,
I’ve got those IRS shutdown blues.

(Chorus)
Shutdown blues, can’t catch a break,
Waiting on that money, for heaven’s sake.
Tried to call them up, but what’s the use?
Oh, I’ve got those IRS shutdown blues.

(Verse 2)
Paperwork stacked, as high as the sky,
Looking for answers, but getting the sly.
Need that refund, to pay my dues,
Stuck in the middle of these shutdown blues.

(Chorus)
Shutdown blues, patience wears thin,
When will the doors open, and let us back in?
Can’t make any moves, feeling so confused,
Drowning deep in these IRS shutdown blues.

(Bridge)
Auditors at home, sipping their brews,
Taxpayers on hold, singing the blues.
The government’s at a standstill, front-page news,
Can’t shake off these shutdown blues.

(Verse 3)
Neighbors complaining, friends feeling low,
Everyone’s waiting, for the green light to go.
Uncertainty’s spreading, like the morning’s fresh dew,
Wrapped up tight in these shutdown blues.

(Chorus)
Shutdown blues, deadlines loom near,
Hoping for clarity, as April draws near.
Gotta stay strong, wear my walking shoes,
Marching through these IRS shutdown blues.

(Outro)
So here’s my song, my lament, and my muse,
A tale of bureaucracy, delays, and short fuses.
But we’ll overcome, like we always do,
Till then, I’ll be singing the IRS shutdown blues.

I then hit the Regenerate button and up popped this slightly different version:

IRS Shutdown Blues

(Verse 1)
Woke up this morning, to some real bad news,
Government’s stalling, got the IRS shutdown blues.
Can’t get my refund, can’t pay my dues,
Everything’s halted, what am I gonna do?

(Verse 2)
Auditors are resting, phones don’t ring,
Waiting for a resolution, oh what the day might bring.
Paperwork’s piling, no one’s there to go through,
Stuck in this limbo, IRS shutdown blues.

(Chorus)
Oh, the Capitol’s a battleground, politicians fight,
While we’re out here waiting, deep into the night.
Give me a break, give me my clues,
I’m dancing alone with the IRS shutdown blues.

(Verse 3)
Neighbors are talking, about how they’re gonna cope,
Some finding humor, others losing hope.
Tax season’s a mess, got those no-answer cues,
Bureaucracy’s best with the IRS shutdown blues.

(Bridge)
Mama needs her money, bills won’t wait,
Daddy’s on the sideline, says it’s a twist of fate.
I’ve got the calendar, counting the days it ensues,
Every tick’s a reminder of the IRS shutdown blues.

(Verse 4)
Coffee shops humming, with tales of dismay,
Everyone wondering, how long this delay?
Checking the headlines, for any good news,
But all I find are more folks with the IRS shutdown blues.

(Chorus)
Oh, the Capitol’s a battleground, sides won’t concede,
While we’re out here struggling, trying to proceed.
Give us some light, clear up these hues,
It’s a nationwide dance, the IRS shutdown blues.

(Solo – Harmonica or Guitar)

(Verse 5)
When it’s all over, and they’re back in line,
I hope they remember, the people’s time.
For now, I’m waiting, paying my societal dues,
Lost in this rhythm of the IRS shutdown blues.

(Outro)
Hoping for a day, when things will resume,
When the doors will open, and dispel this gloom.
Till then, I’m singing, to shake off these screws,
Playing my heart out to the IRS shutdown blues.

I’m still very new to the use of AI, but I guess I could keep this up for a while, having it generate several different takes on the subject.

However, rather than beat that topic to death, I wanted to use a different spin on the subject: “compose a happy song about the IRS shutting down”

Its response:

(Verse 1)
Woke up this morning, to a bright sunny day,
Heard on the news, the IRS went away!
No more forms, no more lines,
A world of simplicity, oh how divine!

(Chorus)
Goodbye IRS, we won’t see you again,
A world without taxes, let the parties begin!
Dancing in the streets, a jubilant sound,
Celebrate, celebrate, the IRS shut down!

(Verse 2)
No more 1040, W-2 or W-9,
Life’s gotten simpler, feeling so fine!
The people are laughing, from city to town,
A weight’s been lifted, the IRS is not around!

(Bridge)
Now, we understand the need for a plan,
To fund our nation, every woman and man.
But for this moment, let’s just have some fun,
Singing and dancing, under the sun!

(Chorus)
Goodbye IRS, we’ll remember the days,
Of navigating the tax maze in so many ways.
But today we’re free, so let’s gather around,
And celebrate, celebrate, the IRS shut down!

(Verse 3)
From east to west, and all in between,
A new era begins, a sight to be seen.
We’ll find a new way, to pay our share fair,
But for now, let’s just breathe the fresh air!

(Chorus)
Goodbye IRS, it’s been quite the ride,
With all your forms and rules, side by side.
But today we dance, with joy and delight,
For the IRS shut down, and the future looks bright!

(Outro)
So here’s to new beginnings, and to what lies ahead,
With hope in our hearts, and joy in our tread.
For now, let’s cherish this wonderful sound,
Of happiness, and peace, as the IRS shuts down!

I think I read somewhere that there are AI tools that can add actual music to lyrics. I don’t have time to try that right now, but possibly after the October 16 extension crunch.

IRS Activities During Gov’t Shutdown

With a shutdown of the Federal government looking more and more likely, I’m sure a lot of people are wondering how this will affect IRS functions, especially since a lot of 2022 tax returns are due in by October 16.

The news media has not covered this particular angle to the budget battle, so I continued my limited experimentation with the infamous $20 per month ChatGPT and discovered that IRS prepares for this kind of event by having a formal “Lapse Appropriations Contingency Plan” to give them guidance.

A quick internet search turned up this 144 page plan for the fiscal year starting October 1, 2023 on the Treasury Dept website. The plan is very fresh, dated as of yesterday, 9/27/23.

I have only skimmed it, but found the key info as to which employees will be furloughed (aka Paid Vacation) during the shutdown and which will continue to work on Pages 5, 6 and 7, which I am posting here.

Of immense interest to me, and I’m sure many other people, is the fact that all audit and examination functions will cease during a lapse (aka Shutdown).

Another Hurricane Delayed Filing Deadline

In the almost ten years since we relocated from the Arkansas Ozarks to Florida’s Nature Coast, there have been a number of hurricanes that were so disruptive that IRS postponed filing deadlines as a result. The official postponements applied to taxpayers living and working in the affected areas, as well as tax preparers in those areas.

As we prepared over the past week for the incoming Hurricane Idalia, which had our location directly in the middle of its projected path, it sounded like it would have a large enough impact to warrant another IRS filing delay.

Usually, it takes IRS a few days to a week to issue their formal announcements of the disaster related delays. To my surprise, IRS acted faster on this matter than I have ever seen. The hurricane made landfall North of us this Wednesday morning. By this afternoon, IRS had already issued the following news release.

Those impacted by Idalia qualify for tax relief; Oct. 16 deadline, other dates postponed to Feb. 15

Basically, it says that for any person or business in one of the 46 Florida counties that were affected by Idalia, any original and extended tax returns that are due between 8/27/2023 and 2/15/2024, their new deadline is now February 15, 2024.

The main types of tax returns that this will affect are 2022 Individual (1040) returns with the extended due date of 10/16/2023, partnerships (1065) and S-corps (1120-S) with extended due dates of 9/15/2023. Filing those returns by the new postponed deadline of Feb 15, 2024 will incur no late penalties, which are usually applicable when taxes are due.

The list of the actual 46 counties that qualify for this postponed deadline currently consists of:
Alachua, Baker, Bay, Bradford, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hardee, Hernando, Hillsborough, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia and Wakulla.

Source: IRS announces tax relief for those impacted by Idalia in Florida

As we saw earlier this years with the names of counties in California that qualified for postponed tax deadlines due to their massive storms, the list can grow as more details come in about the effects of this hurricane.

Also, as Idalia works its way up through Georgia and other states, we can probably expect similar IRS announcements for taxpayers and preparers in those locations.

Considering that we still have three more months in this year’s Hurricane Season, we may see even longer filing deadline delays if we get clobbered some more.

[Update 9/9/23] IRS has granted the same deadline postponement – until Feb 15, 2024 – for taxpayers and preparers in all 46 counties of South Carolina. IRS News Release

Updating George Harrison’s “TaxMan”

There was a good piece in today’s emailed newsletter from Institute For Policy Innovation (IPI), calling for an update to the classic song that has been my theme practically forever. The emailed newsletter says that it was written by David R. Henderson, but the byline on their website has Merrill Matthews as the author.

We Need Another George Harrison

Combining Two Famous Sayings

You might not have seen this Mallard Fillmore comic from April 18 because that strip had been cancelled from most large newspapers over two years ago for daring to mention something deemed by our rulers to be not politically correct: that it’s unfair for men to compete against women in some sports.

Luckily, the folks behind this conservative comic didn’t quit making them and their most recent ones can be found on the net, such as here at Comics Kingdom.

Tax Day For 2022 Returns Is Now October 16 For Many In Calif.

The residents of the formerly Golden State have been clobbered by so many major events that IRS has officially given them until October 16, 2023 to file their 2022 tax returns.

This also applies to tax filers in parts of Georgia and Alabama, who had their own miseries befall them.

The IRS Press Release:
May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia

Unlike the normal type of six month extension from April until October, this special change also allows tax payments to be postponed until 10/16/23 without any of the late penalties that would apply to tax due under a normally extended 10/16 filing.

Since this IRS pronouncement is so new, the California Franchise Tax Board hasn’t yet had a chance to issue its own press release regarding this new filing deadline for 2021 returns; but there’s no reason to suspect that they won’t conform to the IRS time schedule as they did in January.