Tuesday, August 05, 2003

Memo From The Bureaucracy Thank God for the IRS. I mean it. Really I do. I just don't know what I'd do with that extra $560 a month in addition to my normal withholding that they relieve me of thanks to the tax bind my ex put me in. I guess I'd only waste it on frivolities like paying my son's tuition, buying food and paying the rent for the palace we're living in. Anyway, I'm glad to see that the IRS is putting that money to good use. Take for example their recent Revenue Ruling 2003-72: This revenue ruling applies a uniform method of determining when a child attains a specific age for purposes of the following sections of the Internal Revenue Code: 21 (dependent care credit), 23 (adoption credit), 24 (child tax credit), 32 (earned income credit), 129 (dependent care assistance programs), 131 (foster care payments), 137 (adoption assistance programs), and 151 (dependency exemptions). Each of these provisions allows a credit, exclusion, or deduction to the taxpayer, provided, among other requirements, a child has not attained a specific age. For example, under § 24(c), one of the requirements for a qualifying child for the child tax credit is that the child has not attained the age of 17 as of the close of the calendar year in which the taxable year of the taxpayer begins. HOLDING For purposes of each of the provisions identified in this revenue ruling, a child attains a given age on the anniversary of the date that the child was born. For example, a child born on January 1, 1987, attains the age of 17 on January 1, 2004. Wow, complex stuff. I can sleep at night knowing that my son will be 17 on his 17th birthday. I could have never figured that out on my own. According to the IRS, the principal author of this Revenue Ruling is Karin Loverud of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). I guess since she's the "principal author" there must have been others under her supervision who actually wrote the initial drafts of this piece of legal wisdom. I wonder how many others were involved and how many drafts this went through before it was approved. Do you think this went across Treasury Secretary Paul O'Neill's desk for approval? I must of at least been approved by the Commissioner of the IRS. According to the IRS, if you need further information regarding this ruling you should contact Ms. Loverud at (202) 622-6080. Please note that it's not a toll free call. I guess they must be swamped with calls from people who can't understand this. My suggestion: why not give Ms. Loverud a call and just let her know how much you appreciate her diligent work as a public servant in clearing up this confusing issue. I'm sure she'd like to hear from you. 8:36:11 PM