http://www.nytimes.com/…

On these taxing days, when we become a defiantly bipartisan nation of whiners convinced that we are handing over to the Internal Revenue Service our blood and sweat and mother’s milk, our pound of flesh and firstborn young, maybe it’s time for a little perspective.

Legions before us have donated all these items and more to the public till, and not just metaphorically speaking, either. Benjamin Franklin was right to equate paying taxes with a deeply organic behavior like dying. It turns out that giving up a portion of one’s income for the sake of the tribe is such a ubiquitous feature of the human race that some researchers see it as crucial to our species’ success. Without ritualized taxation, there would be precious little hominid representation.

Moreover, plenty of nonhuman animals practice the tither’s art, too, demanding that individuals remit a portion of their food, labor, comfort or personal fecundity for the privilege of group membership. And just as the I.R.S. depends on threat of audit as much as it does on anybody’s sense of civic responsibility, so do other toll-collecting species ensure compliance by meting out swift punishment against tax cheats.
Read More…

http://voices.washingtonpost.com/…

The IRS soon may keep a closer watch on the thousands, if not millions, of small firms and the self-employed that have sprouted up in virtual worlds.

The nation’s taxpayer advocate, who recommends to the IRS how to improve the average consumer’s tax-paying process, released her annual report Wednesday describing some of the most serious problems encountered by taxpayers as well as some issues that the IRS should proactively address.

Taxpayer advocate Nina Olson listed the usual perennial suspects — telling the IRS it should simplify the tax code and improve its working with taxpayers experiencing financial difficulties, among many other things.

But she also told the agency that it should “proactively address emerging issues such as those arising from virtual worlds.” Her report said that about $1 billion in real dollars changed hands in computer-based environments during 2005. Additionally, more than 16 million people are said to have active subscriptions in these worlds, “many of which have their own virtual economies and currencies.”

But Olson said the IRS hasn’t effectively been able to respond to taxpayer inquiries about how to report transactions associated with them. “Economic activities in virtual worlds may present an emerging area of tax noncompliance, in part because the IRS has not provided guidance about whether and how taxpayers should report such activities,” said Olson’s report. She suggests that to improve voluntary tax compliance, the IRS issue guidance addressing how taxpayers should report economic activities in virtual worlds.

I’m not surprised they want to tax something… I’m sort of surprised that the IRS has a so called taxpayer advocate. Is that like the mob? Like when they have a few guys walk into a store and ask the owner where the protection money is and one of the guys is dressed slightly better then the 2 or 3 beefier guys behind him. Speaks with a kindler voice. You know the one. The guy who begs the owner to not have to let the other guys mess up the joint. He’s the shop owners advocate you see.

Raw Meat Cowboy over at GoNintendo.com said this:

This isn’t a call for me to make, obviously. While no one likes being taxed more and more, I can’t say that I think taxing on virtual goods is wrong. I don’t think it’s right either, but there’s definitely an important conversation to have in order to figure this all out.

I can say that I think taxing virtual goods is wrong. Taxation is theft and theft is a socially illegitimate and destructive action.

http://lawfuel.com/show-release.asp?ID=19970

The Colorado National Guard, for the first time ever, received an asset forfeiture sharing check this afternoon at a ceremony that took place inside the State Capitol. The check was a result of a Western Slope marijuana investigation, involving the Guard as well as a number of federal agencies. Agencies participating in the ceremony included the United States Attorney, and representatives from the Bureau of Land Management Enforcement Division, the IRS-Criminal Investigation, and the Colorado National Guard.

Major General H. Michael Edwards, the Adjutant General of Colorado, was presented a $93,701 check for the National Guard’s role in the “Topliss” marijuana investigation, which included asset forfeiture. Beth and Alfred Topliss were arrested for growing marijuana on their property in rural Mesa County. A search warrant executed on the property resulted in a bizarre stand-off, where Mr. Topliss put a gun to his head and said, “I’ll kill the hostage if you don’t back-off.” The hostage was Mr. Topliss himself. The subject was disarmed, and ultimately he and his wife were convicted on state felony charges of possession of marijuana.

Under federal law, property involved in various crimes, including drug cultivation, may be seized and forfeited. In this case, the IRS was the seizing agency, at the request of the Mesa County Drug Task Force. The United States Attorney’s Office filed a forfeiture action against the Topliss’ property in U.S. District Court in Denver. As a result of the case, a court order was issued, forfeiting $375,000, which was the property’s value. Under federal law, the funds go to agencies involved in the investigation, for programs that aid law enforcement in apprehending criminals as well as to youth drug prevention programs. The Mesa County Drug Task Force also received a check during the event for $112,441.

A new Colorado law, Colorado Revised Statutes (CRS) 16-13-601 and 28-3-1303 (2) designate the Colorado National Guard as a law enforcement agency for the limited purpose of participating in the Federal Asset Forfeiture Program. This new law allows the Guard to receive forfeiture sharing monies from cases in which they play a direct role in investigating. The statutes do not expand the law enforcement authority in relation to other types of operations.

“No one should profit from crime,” said United States Attorney Troy Eid. “Besides facing prison and fines, drug-traffickers risk forfeiting their ill-gotten gains.”

No one should profit from crime… except those in government apparently. Asset forfeiture is bad enough already… this is only going to make it worse.

And really… “ill-gotten gains?” Providing customers with products and services you don’t like are ill-gotten? Well I guess when you have the guns and the aura of legitimacy with regard to violence… I suppose it’s whatever Troy says.

http://news.cnet.com/…

IRS undercover operations: Privacy invasion?
The bailout bill also gives the Internal Revenue Service new authority to conduct undercover operations. It would immunize the IRS from a passel of federal laws, including permitting IRS agents to run businesses for an extended sting operation, to open their own personal bank accounts with U.S. tax dollars, and so on. (Think IRS agents posing as accountants or tax preparers and saying, “I’m not sure if that deduction is entirely legal, but it’ll save you $1,000. Want to take it?”) That section had expired as of January 1, 2008, and would now be renewed.

Starting with the so-called Anti-Drug Abuse Act in 1988, the IRS has possessed this authority temporarily, with occasional multiple-year lapses. A 1999 internal report said the IRS had 126 “trained undercover agents” working in field offices at the time. This is the first time that such undercover authority would be made permanent.

Sens. Max Baucus (D) and Chuck Grassley (R) have been pushing to make it permanent for a while, claiming (PDF) in April that: “Undercover operations are an integral part of IRS efforts to detect and prove noncompliance. The temporary status of this provision creates uncertainty, as the IRS plans its undercover efforts from year to year.”

There’s another section of the bailout bill worth noting. It lets the IRS give information from individual tax returns to any federal law enforcement agency investigating suspected “terrorist” activity, which can, in turn, share it with local and state police. Intelligence agencies such as the CIA and the National Security Agency can also receive that information.

The information that can be shared includes “a taxpayer’s identity, the nature, source, or amount of his income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, or any other data received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return.”

That provision had already existed in federal law and automatically expired on January 1, 2008.

What’s a little odd is that there’s been little to no discussion of the IRS sections of the bailout bill, even though they raise privacy concerns. Treasury Secretary Henry Paulson said this week: “I will continue to work with congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy.” He never mentioned the necessity of additional IRS undercover operations.

While everything is going on and the abolition of the Fed is on many people’s minds… lets not forget the terrible things the IRS does and that it too needs to be abolished.

http://www.bethechangeinc.org/…

ServiceNation Summit Co-chairs:

• Vartan Gregorian, President, Carnegie Corporation of New York
  
• Caroline Kennedy, Vice-Chair, New York City Fund For Public Schools
  
• Bill Novelli, CEO, AARP
  
• Alma Powell, Chair, America’s Promise Alliance
  
• Rick Stengel, Managing Editor, TIME Magazine

ServiceNation Leadership Council:

• Andi Bernstein
• Tom A. Bernstein, President and Co-founder, Chelsea Piers
• Michael R. Bloomberg, Mayor, New York, NY; Chairman, National September 11 Memorial and Museum
• Cory Booker, Mayor, Newark, NJ
• Richard H. Brodhead, President, Duke University
• Neil Bush, CEO, Global XS
• Geoffrey Canada, President and CEO, Harlem Children’s Zone
• Mortimer Caplin, Former Commissioner, Internal Revenue Service
• Vice Admiral Richard Carmona, Former U.S. Surgeon General
• Jean Case, CEO, The Case Foundation
• Richard Celeste, President, Colorado College
• Ray Chambers, Amelior Foundation
• Richard Cizik, Vice President, National Association of Evangelicals
• Glenn Close, Actress
• William Cohen, Former Secretary of Defense; Former U.S. Senator
• Janet Langhart Cohen, Author; Founder, Citizen Patriot Organization
• Scott Cowen, President, Tulane University
• Tom Daschle, Former U.S. Senator
• John J. DeGioia, President, Georgetown University
• Manny Diaz, Mayor, Miami, FL
• John Dilulio, Former Director, Office of Faith-Based and Community Initiatives; Author, The Godly Republic
• Melinda Doolittle, Recording Artist
• Paul Fireman, Founder, Reebok
• Al From, Founder and CEO, Democratic Leadership Council
• Susan Fuhrman, President, Teachers College, Columbia University
• Mark Gearan, President, Hobart and William Smith Colleges
• David Gergen, Professor of Public Service and Director, Center for Public Leadership, Harvard University
• Michael Gerson, Columnist, The Washington Post
• Stephen Goldsmith, Former Mayor, Indianapolis, IN
• Jennifer Granholm, Governor, Michigan
• Rabbi Irving Greenberg, Theologian; Author, The Jewish Way; Founding President, Jewish Life Network
• Amy Gutmann, President, University of Pennsylvania
• Lee Hamilton, Former Congressman; Former Co-chair, 9/11 Commission and Iraq Study Group
• Jenny Chin Hansen, President, AARP
• Gary Hart, Former U.S. Senator
• Admiral James R. Hogg, USN (Ret), Director, Strategic Studies Group, Naval War College
• James J. Jensen
• Martin Luther King, III, Chairman, Realizing the Dream
• Joel Klein, Chancellor, New York City Public Schools
• Sherry Lansing, Founder, The Sherry Lansing Foundation
• Jim Leach, Former Congressman; John L. Weinberg Professor of Public and International Affairs, Woodrow   Wilson School, Princeton University
• Anthony Marx, President, Amherst College
• Bonnie McElveen-Hunter, Chairman, American Red Cross
• Sam Nunn, Former U.S. Senator
• Michael Nutter, Mayor, Philadelphia, PA
• Martin O’Malley, Governor, Maryland
• Lt. General Dave R. Palmer, USA (Ret), Former Superintendent, U.S. Military Academy at West Point; Author
• David Paterson, Governor, New York
• Kal Penn, Actor
• Gregg Petersmeyer, Former Assistant to the President; Director, Office of National Service under George H.W. Bush
• Peter G. Peterson, Founder and Chairman, Peter G. Peterson Foundation; Co-founder, Blackstone Group Management
• Rob Portman, Former Congressman; Former Director, Office of Management and Budget
• Samantha Power, Anna Lindh Professor of Practice of Global Leadership and Public Policy, Harvard University; Author
• Marc Racicot, Former Governor, Montana
• Susan Rice, Foreign Policy Advisor, Obama for America
• Bill Richardson, Governor, New Mexico
• David Shaw, Managing Partner, Black Point Group
• Rodney Slater, Former Secretary of Transportation; Chair, United Way of America
• Laurie M. Tisch, President, Laurie M. Tisch Illumination Fund
• Paul Vallas, Superintendent, New Orleans Recovery School District
• David Walker, President and CEO, Peter G. Peterson Foundation
• Silda Wall, Founder, Children For Children
• Rick Warren, Senior Pastor, Saddleback Church; Author, A Purpose Driven Life
• Harris Wofford, Former U.S. Senator; Former CEO, Corporation for National & Community Service

Is it surprising that a large portion of those in support are directly or indirectly government bureaucrats?

http://www.cato-at-liberty.org/…

Paul Hogan is best known as Crocodile Dundee, but he is now getting publicity for his fight against the tax-hungry Australian Tax Office. The Australian reports on the case, and quotes Hogan’s justified complaints about the government’s rigged rules. Hopefully Hogan will prevail, much as he did the last time he was subject to a shakedown attempt:

A defiant Paul Hogan had a typically plain-spoken and blunt message for the Australian Taxation Office yesterday: “Come and get me, you miserable bastards.” As the ATO enlisted the help of the Internal Revenue Service in the US to pursue the actor for allegedly undisclosed tax liabilities, a bemused Hogan insisted he had paid more than enough tax – a figure he estimated to be in excess of $100million – in Australia. …”I’d like to make a deal with the tax office that I’ll give them every cent I made, both me and (partner John “Strop”) Cornell, if they give me every cent they made out of my movies. As a guy who brought millions into
Australia, they should build a statue at the tax office to me and send me a Christmas card. I lived in America and still paid tax in Australia for 4 1/2 years when I could have paid tax in America, and it would have been cheaper, because I thought we needed the money back home more than they needed it here.” …Hogan railed against Operation Wickenby, a taskforce headed by the Australian Taxation Office, working in conjunction with other agencies such as the Australian Crime Commission. “If you become a victim or a target for the ACC, the crime commission, you’re not allowed to say you are, you’re not allowed to say anything they said to you or that you’ve even been questioned, or you can go to jail,” Hogan said. “If the ACC interrogated me, then I couldn’t tell you what they asked me or I can’t even admit they did because I could go to jail, but the ACC has some dickhead who can leak information to the press and anyone else who’s interested.” Hogan said he was being targeted only because he was “high-profile and because I’ve got money”.

Awesome. If only Wesley Snipes had reacted like this.

I’m sure Hogan is going to screwed but at least he’s talking a good game and raising awareness.