Advertisements

Dear IRS Man, I Made a Mistake (And So Did My Accountant)

Seal of the United States Internal Revenue Ser...

Image via Wikipedia

DEAR IRS MAN, I MADE A MISTAKE (AND SO DID MY ACCOUNTANT)

(A) In general.
A business entity that is not classified as a corporation
under section 301.7701-2(b)(1), (3), (4), (5), (6), (7), or (8) (an eligible entity)
can elect its classification
for federal tax purposes [No Shit]
as provided in this section.
An eligible entity with at least two members can elect to be classified
as either an association
(and thus a corporation under section 301.7701-2(b)(2))
or a partnership,
and an eligible entity with a single owner can elect to be classified
as an association
or to be DISREGARDED [really?]
as an entity separate from its owner.
Paragraph (b) of this section provides a default
classification for an eligible entity
that does not make an election.
Thus, elections are necessary only when an eligible
entity chooses to classified initially as other than the default
classification or when an eligible entity
chooses to change
its classification. An entity
whose classification is determined
under the default
classification retains that classification
(regardless of any changes in the members’
liability
that occurs
at any time
during the time
that the entity’s
classification is relevant as defined in paragraph (d)
of this section) [end of parenthetical, remember line 24?]
until the entity makes an election to change that classification
under paragraph (c )(1)
of this section.
Paragraph (c ) of this section provides rules
[Haven’t we had enough F’in rules by now?]
for making express elections. Paragraph (d)
of this section provides special rules for foreign eligible entities
[The IRS nails nails you no matter where you are in the world!].
Paragraph (e ) of this section
provides
special rules [special stinky sauce]
for classifying entities resulting from partnership terminations
and divisions
under section 708(b). Paragraph (f) of this section
sets forth [in stone]
the effective date of this section [which section were we in?]
and a
special rule [what do you know?]
relating to prior periods. . . .

Advertisements

, , , , , , , ,

  1. #1 by carldagostino on April 28, 2011 - 11:44 am

    Gotta add video to this post: The Taxman-Beatles

    • #2 by Carl on April 28, 2011 - 8:40 pm

      Perfect, Carl!

      Should five per cent appear too small,
      Be thankful I don’t take it all.
      ‘Cause I’m the taxman,
      Yeah, I’m the taxman.

    • #3 by Carl on April 28, 2011 - 9:59 pm

      Video added! As the boys said, the IRS says, “You’re workin’ for no one but me!”

  2. #4 by Find an Outlet on April 28, 2011 - 11:46 am

    Hahaha! This makes perfect sense—not! I did my taxes three hours before the deadline and they got rejected for reasons not as clear as this.

    • #5 by Carl on April 28, 2011 - 8:42 pm

      It’d be nice if you could just forget about it if they get rejected, but they’ll find out 44 years from now and you or your heirs will owe over $5MM in interest and penalties

  3. #6 by pattisj on April 29, 2011 - 1:15 am

    I think that legal mumbo-jumbo just cured insomnia! 🙂 How do CPAs stand it?

    • #7 by Carl on April 29, 2011 - 7:13 am

      How do they? Maybe they do prove perseverance – Any human can get through any amount of torture.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: