September 18, 2012 | Back to: News

Revenooer Rants: Welcome to this regluatory nightmare

INCLINE VILLAGE, Nev. — Yet another lowlight of the Obama regime: over the past three years, the Code of Federal Regulations has increased by more than 11,000 pages, according to CNSNews.com. Per the draft of the 2011 annual report to Congress on federal regulations by OMB, the regs cost enough trees to produce a grand total of 169,301 paper pages!

A Congressional Research Service analysis of a 2008 study commissioned by the Small Business Administration estimated that the annual compliance cost for all federal regulations was something like $1.7 trillion — including $160 billion associated with tax compliance!

And while we’re on the subject, we hear that the Department of Health and Human Services and the IRS recently issued 18 pages of regulations dealing with the one simple matter of exactly what constitutes a “full-time employee.”

“It’s scary,” quoth Randy Johnson, a U.S. Chamber of Commerce senior vice-president. “It’s just a small example of two words under our health care law of 2,700 pages. It says to me things are awfully complicated.”

Really?

Regulations notwithstanding, IRS is telling Congress that its cops will have no role in enforcing the controversial rule that Americans purchase health insurance pursuant in the Obamacare regime.

“IRS revenue agents will not be involved. There will not be audits,” according to IRS Deputy Commish Steven Miller.

Congresspersons and others have been sweating the notion that IRS will be harassing people who fail to buy the insurance. We guess this is one less thing to worry about, therefore.

And from our “whistleblower” department, this week, comes word that one such bloke has just cashed in (to the tune of a $104 million reward). Seems Bradley Birkenfeld, a former UBS banker is one of the main men who helped IRS crack the code of secrecy which, for eons, surrounded the world of Swiss banking, resulting in the banks revealing the identity of more than 4,000 U.S. account holders, which has subsequently led to more than 33,000 U.S. taxpayers fessing up to the existence of their overseas accounts, and paying more than $5 billion in taxes and penalties.

We guess “it takes one to know one” — seems Birkenfeld’s record is also a bit besmirched inasmuch as (according to the Wall Street Journal) he pled guilty in 2008 to a count of conspiracy to defraud the United States.

Apparently not a problem for IRS, though, since the “whistleblower” law does not prohibit paying rewards to convicted felons.

Nice.

— CONSULT YOUR TAX ADVISOR - This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation. Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He can be reached at 831-7288, welcomes comments at jquinn@ashleyquinncpas.com, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.

Jeff Quinn
Special to the Bonanza


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Tahoe Daily Tribune Updated Sep 18, 2012 05:38PM Published Sep 18, 2012 05:32PM Copyright 2012 Tahoe Daily Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.