patrick.net

"breaking at least 100 accounting and tax rules"

Yes they are. What's worse is that so many of these guys don't even take the time nor effort to truly understand our tax code.

The only thing they know is that they're not going to pay it.

Randy, how many times have you called some of these guys, first out of legitimate need, then out of curiousity? One of the tell tale signs (for me anyway) is when you've left them a message on their ans. mach. NEVER get called back, then call back like SIX weeks later and IT's THE SAME MSG!

"Hi, this is Jack with _______ consulting and today is Friday May 3rd. I'll be out of my office until_______.

May 3rd! Dude this is AUGUST!

When you finally get a hold of them they will listen to you, make an appt. and then promptly reschedule it until........ well you get the idea. They know you're legit! You're part of "that" system. Then you find yourself wondering why they even bother to hang their shingle?

It's like they're the "floatsom and jetsom" of the business world. Dead leads, dead weight.

FAB,

Glad you solved that mystery! Now what are those "flower sellers" in the road medians really selling? :)

Most card shops are fronts to launder money for drug dealers (does anyone wonder why South Central Los Angeles is full of card shops).

...or all the Bedding and Mattress from NW Schaumburg to Elgin. I actually went in to buy a mattress in one once, and there were two guys straight out of The Godfather sitting at a little wooden table just through the rear door working on something in a nice leather folder.

It wasn't a bad mattress either. And pretty cheap, since Tony told me 50% off if I paid in cash.

How can card collectors and antique dealers make money if we dont encourage them. I am sorry I am not very much into antiques or cards or stuff that dont add value to my life. I am not a believer in One mans junk is another mans treasure. It still is junk for me and I might pay a dollar for it.

Every once in a while, one of those tax cheats gets caught. They end up owing massive back taxes, interest & penalties. If they are lucky, they stay out of jail. But they can't discharge the tax debt in bankruptcy. So they are basically locked out of holding a regular job for life (because the IRS will attach 25% or so of their wage).

The IRS is starting to crack down on these guys--20% down required. This may not sound like a lot, but that is 20% of the total tax debt, which includes interest and penalties:

http://tinyurl.com/s34t3

It’s like they’re the “floatsom and jetsom” of the business world. Dead leads, dead weight.

Back when I had a telecom software consulting co I used to Hire or W2 all my talent. I wouldn't 1099 unless they could corp-to-corp and could convince me they knew how to file their taxes correctly. I got stung by a 1099 not paying his taxes once and learnt that the IRS has the authority to move upstream with the failed withholdings demand.

Most other guys I knew running similar corps used shell "broker-employers" for all their talent so they could 1099 to that corp, which would mysteriously disappear whenever the audit notice was served.

I always thought these were the absolute scum of the earth. We already had 400%+ margins in that type of biz during that time. But that wasn't enough. These guys had to shoot for another couple hundred percent.

Look at advertisements added to the site since we started talking about evading taxes. These people who help evade tax paying should be prosecuted first.

Does it cost $25/hr per person to run a consulting company. All these H1 consultants get ripped off - the billing rates are above $100/hr but they get to see $25/hr and the rest goes to consulting company middle men. They are absolute ripoffs.

Phil,

It used to be alot worse than that. Guys would form LLCs, give the H1B guys stock (not options) and make them "employees", sponsor their visa, and designate them as member-managers. Then, when Mr. Bossman paid all his taxes but $15-$18/hr h1b guy didn't, the IRS would go after h1b guy. Meanwhile the real consulting company was charging $150/hr blended rates or $1000-$1200/day rates, and 1099-ing all the help back to the sham LLC.

Glen,

That link was valueble, refreshing and welcome! OIC has been so abused (as has the 1031 Exchange). It's became another stall tactic. A favorite amongst contractors etc.

"OK, you got me". But you know what? I'm flat broke but I DO employ a lot of people. (Every contractor that hires college kids and illegals "thinks" he's a big employer). If you hit me with that tax bill ALL out once I'm out of business, then I'll never be able to pay you back!

In truth, so many of these guys owe so much they WON'T LIVE LONG ENOUGH to pay it back anyway! So tell you what Mr. Cheat, we'll take 20% UP FRONT and you continue to make non-refundable payments until we straighten this thing out! God, I love it! About time. This old world will press forward somehow with one less contractor in it.

Could someone explain 1031 exchange in really easy terms? I saw it in an MLS listing the other day...

Phil,

I realize in the BA comments gravitate toward the tech sector and your definition of contractor is different but how many of you guys heard this one? Really typical for landscapers, tire shops etc. The "bookkeeper" shows income tax withholding for the employees but they never pay the employer's share? Then the bookkeeper (who's been listed as an officer of the corp.) gets stuck holding the bag when these sleazes split town! Very common occurence.

1031 is another preferential treatment we in this country extend to Real Estate! All Hail the United States of Real Estate!

Basically if somone owns a property and WOULD owe cap gains if they sold it they can exchange (within generous guidelines) for a property of an equal value even in another state. Since it's considered a "like for like" exchange there is no taxable event.

1031 is another preferential treatment we in this country extend to Real Estate! All Hail the United States of Real Estate!

I though 1031 applies to many things:

http://www.1031x.com/aircraft_equipment_livestock.cfm

I know you jest, but this terrorism threat is very real. And very serious.

I agree.

You could try an "economics vs. terror: which kills more?" a la the MOD lunch buddies in "Thank You For Smoking". (Can any grammar pedant finish this analogy: 'less : fewer :: more : ..."?)

Err.. as a thread topic, I meant. But with a housing connection.

I am surprised that I am not hearing about how the latest foiled terror attack is virtually identical to the Boijinka Project which was foiled in 1995, and barely made news.

I did see such comparison in Google News.

I remember the exact date of that dinner party, it was September 10th, 2001.

On September 10th, 2001, I had chicken kabob for dinner. I do not know why I remember. Sometimes, my food memory is pretty strong.

the libs are pissed because:
#1) no Americans or Christians or non-Arabs got killed

If you don't see the tragic irony in your own statement, then you have my pity.

I am disgusted by all extremists, but most so by our own extremists who are destroying this country by politicizing everything, regardless of basic decency. I wonder how much longer this seething hatred between the fringes in this country can go on before it rips us apart.

Randy,

I know this is way OT but I resent this lumping in of the left and the right fringes as if they're equally at fault. The radicalized left fringes in the US pretty much burnt themselves out by the early 70s and is now mostly composted of ignorant college Marxists with little knowledge about economics or organizing terrorist activities. They are tiny in number and have no influence on the more mainstream left.

Most of today's so called left holds values that would be considered mainstream 20 or 30 years ago, eg religious and racial tolerance, greater economic equality, avoiding colonial entanglements, questioning their own elected government. While they might not go about these goals in the optimal way, these are admirable goals nevertheless.

Outside of a few extremely fringe anarchist groups whose identification is as much to the right as to the left, nobody on the left advocate indiscriminate killing of civilians, and most folks on the mainstream left wholeheartedly supports the American troops, even if they don't support their actions.

On the other hand, the antidisestablishmentarians who calls anyone questioning any of Bush administration's activities a traitor, are a much more prominent fixture in the national landscape. It's the GOP operatives and leadership and FoxNews who is doing the vast bulk of politicizing and demonizing.

SP,

Ugh, yes.

(If only because the alternate line of reasoning leads to a US government or its agents actively colluding to have a continual "War on Terror.")

Are the Americans just getting the crappiest intelligence ever (oh, say the kind of intelligence provided by an Iranian double agent) or what? When this whole mess began, I thought the Delta Force would discretely administer a few well positioned shots and we'd move on to a whole new generation of terrorist leadership.

Sorry, I know, totally OT. Maybe I can venture a speculation about FBs becoming a rich ground for recruiting domestic terrorists and criminals. That's certainly happened in the 1930s, when massive numbers of foreclosure lead to more bank robberies.

new thread Unity

astrid,

I was careful to not use "left" or "right" in my statement. I think the linear polarization so popular today is nothing more than cynical self-identification. In reality, there is no "left" or "right", but an entire universe of opinion that largely overlaps in huge areas. To say McVeigh was conservative somehow doesn't seem to work, even though he was a self proclaimed patriot and religious fundamentalist conservative. The kneejerk "environmental" legal groups that sue to stop every single infrastructure improvement project are equally not liberal or progressive.

SFWoman,

I was thinking of Ahmad Chalabi, a Iraqi with confirmed ties to Tehran. The US's lack of intelligence assets (along with US's own mistrust of French and German information, precisely because of the fear of politicizing) covered up many of his lies and lead the US leadership to believe that we'd be welcomed with flowers and cheering crowds when we entered Baghdad.

I wasn't even aware of the lack of actual Iranian intelligence. That's really unbelievable, given that America has a large Persian emigre community and had extensive dealings with Iran since the 1950s. I guess before 9/11, we were only prepared for the threat of global Communism.

The New Yorker just did an article this week on US's defense expenditures, it's really chilling how the DoD (especially Rumsfeld) never stopped fighting the Cold War.

Randy,

Fair enough. Sorry for blowing up like that. I'm getting awfully jumpy and defensive from many years of other people characterizing my positions as "fringe" or "extreme".

SFWoman,

I forgot to add the New Yorker link.

http://tinyurl.com/nvobk

I’m getting awfully jumpy and defensive from many years of other people characterizing my positions as “fringe” or “extreme”.

What is your position on ceramic knives again? :)

The US better just keep Musharrif in place. At least he's not posturing in an openly hostile manner and might be persuaded to help with the right inducements. He also seems a bit better for the Pakistanis than his predecessors.

"What is your position on ceramic knives again? :)"

I'd still go with a set of MAC knives or nicer Japanese knives, maybe a ceramic vegetable peeler. Ceramic knives appear to be too fragile as ordinary kitchen knives.

astrid, sfwoman, sp, et al

I am not drawing any moral equivalency between your statements here and Bap33's. I find anyone who is willing to dismiss any group as a stereotype pathetic and dangerous. There are always exceptions. Often it is those very "exceptions" that are the great people who accomplish great things if they aren't killed or imprisoned first. Bap33 might find his own faith is based upon such an exception if he'd stop looking for "libs" hiding in the closet.

astrid,

I'm not sure I agree with your dismissal of the effect of "the other side", as you put it. These are the same people convincing parents to not immunize their children, managed health care to include aromatherapy and fringe homeopathy on insurance plans while well baby care gets cut, governments not to invest in GMOs which could feed millions in Africa, and policy makers not to hold a reasoned debate about solving our energy problems for fear that someone might say the taboo word 'nuclear'.

I think everyone on the fringe is doing plenty of damage to our country.

the libs are pissed because:
#1) no Americans or Christians or non-Arabs got killed

I hear that Conservatives are pissed because
#1) no Americans or Christians or non-Arabs got killed

Now there's no justification to nuke Iran - they're probably as much involved as this as Iraq was on Sept 11th.

Randy,

When we move out of political or militaristic fringes, then I'm a bit more uncomfortable with the assumption. A lot of the problems you mention stem from people's spiritualism and superstition, and it's an area that I, as an atheist, am extremely uncomfortable addressing. They also seem less than fringy to me, I seem to meet more people who are against nuclear energy than I meet people who are for nuclear energy. Ditto GMO crops, even though the econlogical dangers are exaggerated and the ecological advantages (less fertilizer, less pesticide) are proven.

The more general problem with the public (that I am comfortable talking about) is that very few social activists have any systematic knowledge about economics, statistics, or history, or even have the curiosity to try. Thus, they're constantly setting up false dichotomies to help their case, while condemning the other side as heartless kickers of puppies.

A lot of the problems you mention stem from people’s spiritualism and superstition, and it’s an area that I, as an atheist, am extremely uncomfortable addressing.

So you think astrology is superstition? :(

"So you think astrology is superstition? :("

I know the Romans, the ancient Greeks, the Ancient Egyptians, the ancient Chinese, etc, all treated it as a serious science.

Though when I mentioned superstition I was addressing people who refused to immunize their children on a tiny chance that it might increase their chance autism, or put their month old baby on a raw food diet. Those are obvious cases where people exaggerate one kind of danger while underestimating another kind of danger.

put their month old baby on a raw food diet

Sashimi at that age?

I know the Romans, the ancient Greeks, the Ancient Egyptians, the ancient Chinese, etc, all treated it as a serious science.

It is indeed quite amazing. I am surprised there are so few serious books on Chinese astrology compared to Hindu astrology.

Ha Ha,

The author is not exactly an unbiased source of information.

http://en.wikipedia.org/wiki/Peter_Schweizer

Furthermore, just because Gore do more doesn't mean his points are untrue or unimportant. And distinguishing between carbon credit paid by Gore and carbon credits paid by the studio (who wanted Gore to fly the jet to promote his film) is pointless quibbling. While I found plenty wrong with Gore's film (mostly because it's overly optimistic and doesn't off real world solutions to the problems presented), the evidence he did present are backed by peer reviewed climate scientists and decades of data. The article debunked nothing and amply demonstrates GOP's strategy of demonize, trivialize, and marginalize any fact based dissent.

If you're going to start this line of representing personal attacks as critique on public policy, would you also like to talk about Bill Bennett's gambling addiction or Rush Limbaugh's drug addiction and divorces or Ralph Reed's ties to Abramoff?

I still think most people overestimate the effect of "free will". Fate is actually incredibly powerful.

In many ways it's not surprising that we as Americans could not remember that housing prices don't always go up.

http://tinyurl.com/lxcq2

September 11 -- what year? 30 percent of Americans don't know

Some 30 percent of Americans cannot say in what year the September 11, 2001 terrorist attacks against New York's World Trade Center and the
Pentagon in Washington took place, according to a poll published in the Washington Post newspaper.

Ouch. Fortunately, the article did point out that 95% of the participants remembered the month and date. Phew!

I'll always remember - I used to have lunch there a lot.

My best friend was just a few blocks away from WTC on that morning. Thank God he was all right.

It was a sad day.

Maybe I can venture a speculation about FBs becoming a rich ground for recruiting domestic terrorists and criminals. That’s certainly happened in the 1930s, when massive numbers of foreclosure lead to more bank robberies.

hmmm, yes, it's all connected... capitalism contains the seeds of its own destruction ;)

went to a very funny talk tonite by a national political newspaper cartoonist at the politics in the pub series -- he drew the wackiest cartoons on an OHP drawing together the threads of politics, modern life, and materialism, etc, including pictures of people having to pull dwindling resources out of the ground, etc. Just funny extemporising and drawing, very tangential but still connected, a good change from the more solemn speeches at that forum...

http://www.politicsinthepub.org/current.htm