New Tax Guide Features Recovery Tax Breaks; Helps People Save on their 2009 Taxes
Watch Video: Year-End Tax Tips: English Spanish ASL Watch Video: Record Keeping: English ASL
WASHINGTON — Taxpayers can get the most out of new recovery tax breaks and get a jump on preparing their 2009 federal income tax returns by consulting a newly revised comprehensive tax guide now available on IRS.gov.
Publication 17, Your Federal Income Tax, features details on taking advantage of new tax-saving opportunities, such as the making work pay credit for most workers, American opportunity credit for parents and college students, energy credits for homeowners going green, first-time homebuyer credit, sales or excise tax deduction for new car buyers, and the expanded child tax credit and earned income tax credit for low- and moderate-income workers. This useful 308-page guide also provides more than 6,000 interactive links to help taxpayers quickly get answers to their questions.
Publication 17 has been published annually by the IRS for more than 65 years and has been available on the IRS Web site since 1996. As in prior years, this publication is packed with basic tax-filing information and tips on what income to report and how to report it, figuring capital gains and losses, claiming dependents, choosing the standard deduction versus itemizing deductions, and using IRAs to save for retirement.
To get Publication 17, go to www.irs.gov and enter “17” in the search box in the upper right corner of the home page. Those who do not have access to the Internet can call 1-800-TAX-FORM (829-3676) to request a free copy from the IRS. Printed copies will be available in January 2010.
In addition, the American Recovery and Reinvestment Act of 2009 Information Center features a variety of recovery-related videos, podcasts, tax tips and answers to frequently-asked questions.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Monday, December 7, 2009
Treasury Inspector General Tax Admin Report to Congress
The Treasury Inspector General for Tax Administration yesterday submitted its Semiannual Report to Congress:
I am pleased to submit this Semiannual Report to Congress, highlighting the Treasury Inspector General for Tax Administration’s many accomplishments in promoting its mission to provide oversight of the IRS and protect the integrity of Federal tax administration. TIGTA’s achievements for the six-month period ending September 30, 2009 (the Reporting Period), are showcased through the many noteworthy audits, investigations, and inspections and evaluations summarized in this report. ...
TIGTA’s combined audit and investigative efforts have recovered, protected and identified monetary benefits totaling more than $3.8 billion for the Reporting Period and more than $14 billion for all of fiscal year 2009. ... For the Reporting Period, TIGTA’s Office of Audit completed 86 reports (142 for all of fiscal year 2009) and our Office of Investigations closed 1,992 investigations (3,527 for all of fiscal year 2009).
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
I am pleased to submit this Semiannual Report to Congress, highlighting the Treasury Inspector General for Tax Administration’s many accomplishments in promoting its mission to provide oversight of the IRS and protect the integrity of Federal tax administration. TIGTA’s achievements for the six-month period ending September 30, 2009 (the Reporting Period), are showcased through the many noteworthy audits, investigations, and inspections and evaluations summarized in this report. ...
TIGTA’s combined audit and investigative efforts have recovered, protected and identified monetary benefits totaling more than $3.8 billion for the Reporting Period and more than $14 billion for all of fiscal year 2009. ... For the Reporting Period, TIGTA’s Office of Audit completed 86 reports (142 for all of fiscal year 2009) and our Office of Investigations closed 1,992 investigations (3,527 for all of fiscal year 2009).
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Friday, December 4, 2009
New Tax Court Ruling on Deducting Cost of an MBA
The Tax Court yesterday allowed a nurse to deduct the cost of an M.B.A. degree from the University of Phoenix. Singleton-Clarke v. Commissioner, T.C. Summ. Op. 2009-182 (Dec. 2, 2009) (citations omitted):
Petitioner began taking courses at the University of Phoenix in March 2005, graduating in April 2008 with an MBA/HCM. She chose the University of Phoenix because the institution allowed students to complete the program via online courses, which was a major priority for petitioner.
Petitioner enrolled in the program to become more effective in her then-present duties. She realized that nursing had evolved greatly in the 24 years since she earned her bachelor’s degree, and she felt disadvantaged working with highly educated doctors. Petitioner believed that although an MBA was not required for her job, the degree would give her greater credibility and the courses would make her more effective in her present and future role as a quality control coordinator.
The University of Phoenix MBA/HCM provides students “with the business management skills needed to manage successfully in today’s health care delivery systems.” ...
An MBA degree is different from a degree that serves as foundational qualification to attain a professional license. For instance, this Court had denied deductions for law school expenses, because a law degree qualifies a taxpayer for the new trade or business of being a lawyer.
An MBA is a more general course of study that does not lead to a professional license or certification. This Court has had differing outcomes when deciding whether a taxpayer may deduct education expenses related to pursing an MBA, depending on the facts and circumstances of each case. The decisive factor generally is whether the taxpayer was already established in their trade or business. ...
Analyzing petitioner’s situation, her facts and circumstances far more closely resemble the cases that allowed a deduction for pursuing an MBA. Petitioner is unlike the student in Link, who went straight from his undergraduate degree into an MBA program, and the officer in Schneider, who went straight from the Army into an MBA program. Petitioner is considerably closer in circumstance to the taxpayers in Sherman, Allemeier, and Blair, who had 2 years, 3 years, and 1 year, respectively, of experience performing tasks and activities in their chosen professions before beginning their MBA programs. The facts in favor of petitioner are even stronger than those in the three cases above where the taxpayers prevailed. Petitioner worked for 1 year as a quality control coordinator and had more than 20 years of directly related work experience, gaining vast clinical and managerial knowledge in acute and subacute health care settings, before beginning the University of Phoenix MBA/HCM program.
In summary, the MBA/HCM may have improved petitioner’s preexisting skill set, but objectively, she was already performing the tasks and activities of her trade or business before commencing the MBA. For all of the above reasons, we find that petitioner’s MBA/HCM did not qualify her for a new trade or business, and we hold, therefore that petitioner may deduct her education expenses for 2005
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Petitioner began taking courses at the University of Phoenix in March 2005, graduating in April 2008 with an MBA/HCM. She chose the University of Phoenix because the institution allowed students to complete the program via online courses, which was a major priority for petitioner.
Petitioner enrolled in the program to become more effective in her then-present duties. She realized that nursing had evolved greatly in the 24 years since she earned her bachelor’s degree, and she felt disadvantaged working with highly educated doctors. Petitioner believed that although an MBA was not required for her job, the degree would give her greater credibility and the courses would make her more effective in her present and future role as a quality control coordinator.
The University of Phoenix MBA/HCM provides students “with the business management skills needed to manage successfully in today’s health care delivery systems.” ...
An MBA degree is different from a degree that serves as foundational qualification to attain a professional license. For instance, this Court had denied deductions for law school expenses, because a law degree qualifies a taxpayer for the new trade or business of being a lawyer.
An MBA is a more general course of study that does not lead to a professional license or certification. This Court has had differing outcomes when deciding whether a taxpayer may deduct education expenses related to pursing an MBA, depending on the facts and circumstances of each case. The decisive factor generally is whether the taxpayer was already established in their trade or business. ...
Analyzing petitioner’s situation, her facts and circumstances far more closely resemble the cases that allowed a deduction for pursuing an MBA. Petitioner is unlike the student in Link, who went straight from his undergraduate degree into an MBA program, and the officer in Schneider, who went straight from the Army into an MBA program. Petitioner is considerably closer in circumstance to the taxpayers in Sherman, Allemeier, and Blair, who had 2 years, 3 years, and 1 year, respectively, of experience performing tasks and activities in their chosen professions before beginning their MBA programs. The facts in favor of petitioner are even stronger than those in the three cases above where the taxpayers prevailed. Petitioner worked for 1 year as a quality control coordinator and had more than 20 years of directly related work experience, gaining vast clinical and managerial knowledge in acute and subacute health care settings, before beginning the University of Phoenix MBA/HCM program.
In summary, the MBA/HCM may have improved petitioner’s preexisting skill set, but objectively, she was already performing the tasks and activities of her trade or business before commencing the MBA. For all of the above reasons, we find that petitioner’s MBA/HCM did not qualify her for a new trade or business, and we hold, therefore that petitioner may deduct her education expenses for 2005
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Thursday, December 3, 2009
IRS 2010 Standard Mileage Rates
The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
IRS Interest Rates remain @ 4% through 03/31/2010
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Wednesday, December 2, 2009
Proposed Reporting Requirements for credit card transactions
The Internal Revenue Service issued proposed regulations under a new statute requiring that, starting with transactions in calendar year 2011, the gross amount of payment card and third-party network transactions be reported annually to participating merchants and the IRS.
The provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.
The IRS also released for comment a draft version of new Form 1099K, Merchant Card and Third-Party Payments, which will be used to make these reports.
The new law requires banks and other payment settlement entities to report payment card and third-party network transactions with their participating merchants. The IRS emphasized that individual cardholders are unaffected by this requirement, and none of the cardholder’s personal information will be shared with the IRS.
The IRS has created Form 1099-K, which is similar to the existing Forms 1099 used to report interest, dividends and other payments. The first information return covering calendar year 2011 must be filed with the IRS and furnished to participating merchants in early 2012. Among other things, the proposed regulations describe who is required to file a return and which payment card and third-party network transactions are subject to the reporting requirement. The proposed regulations also provide numerous examples.
The IRS welcomes comments on these proposed regulations and the draft Form 1099-K. Comments must be received by Jan. 25, 2010, and may be submitted electronically, by mail or hand delivered to the IRS. A public hearing is scheduled for Feb. 10, 2010, in Washington, D.C.The proposed regulations provide details on submitting comments or participating in the public hearing.
The IRS continues to work closely with stakeholders to ensure the smooth implementation of this new information reporting program, including the mitigation of penalties in the early stages of implementation for all but particularly egregious cases.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
The provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.
The IRS also released for comment a draft version of new Form 1099K, Merchant Card and Third-Party Payments, which will be used to make these reports.
The new law requires banks and other payment settlement entities to report payment card and third-party network transactions with their participating merchants. The IRS emphasized that individual cardholders are unaffected by this requirement, and none of the cardholder’s personal information will be shared with the IRS.
The IRS has created Form 1099-K, which is similar to the existing Forms 1099 used to report interest, dividends and other payments. The first information return covering calendar year 2011 must be filed with the IRS and furnished to participating merchants in early 2012. Among other things, the proposed regulations describe who is required to file a return and which payment card and third-party network transactions are subject to the reporting requirement. The proposed regulations also provide numerous examples.
The IRS welcomes comments on these proposed regulations and the draft Form 1099-K. Comments must be received by Jan. 25, 2010, and may be submitted electronically, by mail or hand delivered to the IRS. A public hearing is scheduled for Feb. 10, 2010, in Washington, D.C.The proposed regulations provide details on submitting comments or participating in the public hearing.
The IRS continues to work closely with stakeholders to ensure the smooth implementation of this new information reporting program, including the mitigation of penalties in the early stages of implementation for all but particularly egregious cases.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
1st Time Home Buyer Credit Facts
If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
- You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
- If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
- For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
- A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
- The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
- People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
- The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
- No credit is available if the purchase price of the home exceeds $800,000.
- The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
- A dependent is not eligible to claim the credit.
Paperless Office Facts
An income tax return preparer is not required to sign the taxpayer's copy of a federal income tax return [Rev. Rul. 78-317]. The preparer must provide a complete copy of the return filed with IRS to the taxpayer in any media, including electronic media, that is acceptable to both the taxpayer and the tax return preparer [Reg. § 1.6107-1(a)(2)]. If an electronic copy is acceptable to the client, it is acceptable to the IRS. However, a client may refuse to accept an electronic copy, and demand a paper one.
A tax return preparer must either retain a completed copy of each return prepared or retain a record, by list, of the name and taxpayer identification number of the taxpayer for which the return was prepared [Code Sec. 6107(b)(1)], for three years. As with the client copy, the preparer's return copy does not have to be signed. Regarding e-filed returns, Electronic Return Originators (EROs) may electronically image and store all paper records they are required to retain for IRS e-file. This includes Forms 8453 and paper copies of Forms W-2, W-2G, and 1099-R as well as any supporting documents not included in the electronic record and Forms 8879 and 8878. The storage system must satisfy the requirements of Revenue Procedure 97-22, Retention of Books and Records. In brief, the electronic storage system must ensure an accurate and complete transfer of the hard copy to the electronic storage media and provide a system for indexing and retrieving the stored information.
There is no requirement that a taxpayer sign a disclosure document agreeing to obtaining his or her electronic copy through e-mail. However, if return information is going to be e-mailed, preparers should follow the guidelines in IRS Pub. 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns (Revised March, 2009). The IRS has developed six security and privacy standards to better protect taxpayer information collected, processed and stored by providers participating in online filing of individual income tax returns. The standards are based on industry best practices and are intended to supplement the Gram-Leach-Bliley Act and the implementing rules and regulations promulgated by the Federal Trade Commission.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
A tax return preparer must either retain a completed copy of each return prepared or retain a record, by list, of the name and taxpayer identification number of the taxpayer for which the return was prepared [Code Sec. 6107(b)(1)], for three years. As with the client copy, the preparer's return copy does not have to be signed. Regarding e-filed returns, Electronic Return Originators (EROs) may electronically image and store all paper records they are required to retain for IRS e-file. This includes Forms 8453 and paper copies of Forms W-2, W-2G, and 1099-R as well as any supporting documents not included in the electronic record and Forms 8879 and 8878. The storage system must satisfy the requirements of Revenue Procedure 97-22, Retention of Books and Records. In brief, the electronic storage system must ensure an accurate and complete transfer of the hard copy to the electronic storage media and provide a system for indexing and retrieving the stored information.
There is no requirement that a taxpayer sign a disclosure document agreeing to obtaining his or her electronic copy through e-mail. However, if return information is going to be e-mailed, preparers should follow the guidelines in IRS Pub. 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns (Revised March, 2009). The IRS has developed six security and privacy standards to better protect taxpayer information collected, processed and stored by providers participating in online filing of individual income tax returns. The standards are based on industry best practices and are intended to supplement the Gram-Leach-Bliley Act and the implementing rules and regulations promulgated by the Federal Trade Commission.
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
IRS mandated new security, privacy, and Business Standards
The IRS has mandated six (6) new security, privacy, and business standards to better serve taxpayers and protect their information collected, processed and stored by Online Providers of individual income tax returns.
Individual income tax returns generally refer to the 1040 family of returns. Refer to the IRS Publication 3112, IRS e-file Application and Participation, for definition of Online Provider.
These new standards are intended to supplement the Gramm-Leach-Bliley Act and the implementing rules and regulations promulgated by the Federal Trade Commission.
The security and privacy objectives of these standards are: setting minimum encryption standards for transmission of taxpayer information over the internet and authentication of Web site owner/operator’s identity beyond that offered by standard version SSL certificates; periodic external vulnerability scan of the taxpayer data environment; protection against bulk-filing of fraudulent income tax returns; and the ability to timely isolate and investigate potentially compromised taxpayer information.
These standards also address certain business and customer service objectives such as instant access to Web site owner/operator’s contact information, and Online Provider’s written commitment to maintaining physical, electronic, and procedural safeguards of taxpayer information that comply with applicable law and federal standards
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Individual income tax returns generally refer to the 1040 family of returns. Refer to the IRS Publication 3112, IRS e-file Application and Participation, for definition of Online Provider.
These new standards are intended to supplement the Gramm-Leach-Bliley Act and the implementing rules and regulations promulgated by the Federal Trade Commission.
The security and privacy objectives of these standards are: setting minimum encryption standards for transmission of taxpayer information over the internet and authentication of Web site owner/operator’s identity beyond that offered by standard version SSL certificates; periodic external vulnerability scan of the taxpayer data environment; protection against bulk-filing of fraudulent income tax returns; and the ability to timely isolate and investigate potentially compromised taxpayer information.
These standards also address certain business and customer service objectives such as instant access to Web site owner/operator’s contact information, and Online Provider’s written commitment to maintaining physical, electronic, and procedural safeguards of taxpayer information that comply with applicable law and federal standards
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
Projected Revenue from Marijuana Tax
There has been much commentary on the revenue that could be raised by legalizing and taxing marijuana:
American Journal of Economics and Sociology, Potential Tax Revenue From a Regulated Marijuana Market: A Meaningful Revenue Source
Business Week, Legalize Marijuana for Tax Revenue
Christian Science Monitor, A Marijuana Tax as the Next New Revenue Stream?
Slate: A Toke and a Tax: If Governments Legalize Marijuana, How Much Revenue Can They Raise From It?
Sloshspot, If Marijuana Production Were Legal: Projected Tax Revenues, by State
CNN has published a 50-state ranking of the potential tax revenues that could be raised by legalizing and taxing marijuana, based on state-by-state marijuana consumption, from Jeffrey Miron (Harvard University, Department of Economics), Budgetary Implications of Marijuana Prohibition. The study projects $778.2 million from taxing marijuana; here are the Top 20 states:
California ($105.4 million)
New York ($65.5 million)
Florida ($48.2 million)
Texas ($46.6 million)
Ohio ($34.8 million)
Michigan ($32.4 million)
Illinois ($31.6 million)
Pennsylvania ($30.5 million)
Washington ($22.0 million)
Virginia ($20.9 million)
North Carolina ($20.6 million)
Georgia ($19.3 million)
New Jersey ($19.3 million)
Massachusetts ($18.4 million)
Indiana ($17.8 million)
Colorado ($17.6 million)
Missouri ($15.6 million)
Minnesota ($14.3 million)
Oregon ($14.1 million)
Maryland ($13.9 million)
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
American Journal of Economics and Sociology, Potential Tax Revenue From a Regulated Marijuana Market: A Meaningful Revenue Source
Business Week, Legalize Marijuana for Tax Revenue
Christian Science Monitor, A Marijuana Tax as the Next New Revenue Stream?
Slate: A Toke and a Tax: If Governments Legalize Marijuana, How Much Revenue Can They Raise From It?
Sloshspot, If Marijuana Production Were Legal: Projected Tax Revenues, by State
CNN has published a 50-state ranking of the potential tax revenues that could be raised by legalizing and taxing marijuana, based on state-by-state marijuana consumption, from Jeffrey Miron (Harvard University, Department of Economics), Budgetary Implications of Marijuana Prohibition. The study projects $778.2 million from taxing marijuana; here are the Top 20 states:
California ($105.4 million)
New York ($65.5 million)
Florida ($48.2 million)
Texas ($46.6 million)
Ohio ($34.8 million)
Michigan ($32.4 million)
Illinois ($31.6 million)
Pennsylvania ($30.5 million)
Washington ($22.0 million)
Virginia ($20.9 million)
North Carolina ($20.6 million)
Georgia ($19.3 million)
New Jersey ($19.3 million)
Massachusetts ($18.4 million)
Indiana ($17.8 million)
Colorado ($17.6 million)
Missouri ($15.6 million)
Minnesota ($14.3 million)
Oregon ($14.1 million)
Maryland ($13.9 million)
John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent- 720-234-1177
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