Tag Archives: US Treasury

All About Taxes – We know … Most Really Want to Know About ENFORCEMENT ! Great Source Sites

Here are great source sites used for our research and possibly useful as you enter tax season:

As promised last Friday we wanted to share some neat stats and information concerning taxes and the collection of, and the IRS in general.

This is a brief review of the subject matter from our pending 2020 Q2 Newsletter which will hit your mailbox right around tax filing date, and we thought it a good time to share some stats.

We know that when you think of the IRS and taxes you’re mostly concerned with one thing … ENFORCEMENT!

With brevity a concern in this venue, we will drill directly to the enforcement portions of our much deeper and more comprehensive article … again in our Pending Q2 Newsletter.

Enforcement of Tax Collections and IRS Statistics

In dealing with the IRS and tax situations over the past 31 years the one thing that we have found most important is to always respond to the IRS in a timely fashion.

TaxAudit 2018 stats


Our general IRS/Client experience over the past three decades has been a very good one. We have found the IRS to almost always be very receptive to information, understanding of mistakes, and even frequently waving penalties and interest …however this last point is not always in stone given certain situations

Amazingly nearly 2/3 of audits, which are almost all done by paper due to the cost of a field audit are not answered, resulting in a claim on the taxpayer. Bottom line, make sure you show the IRS that you’re answering their questions in a timely fashion and expect a paper computer driven notice.

09-18 number of returns audited IRS advocacy

The majority of audits and notifications (AKA CP2000) are created or driven by an income mismatch – said another way, if you earn some income, wages, interest, investments, or some type of capital gains, and you do not get it on your tax return, it’s easy for the IRS to catch, and you WILL get a notification. (CP2000)

Sir Learned Hand, Famous Quote440px-LearnedHand1910a

“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.”

While you hear us talk about tax reducing strategies frequently, (here, here, here ) as we are big believers in not paying any extra taxes, we are also very big believers of being fair and honest with the IRS. Over the years we have been presented with many gray area tax strategies that have almost inevitably not held up against the IRS.

If it sounds too good to be true, it usually is in the end … don’t even think about going there – the IRS will eventually find you, and it will most always be at the most inconvenient time!

Having respect, and mutual admiration for the IRS and its’ enforcers,  but not fearful or conspiracy, is a healthy way to go about your tax responsibility as a United States Taxpayer!

Have a Great “Tax Stats” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

January 2015 Financial Planning Tax Tip, Capital Market and Economic Review (Video)

Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.

For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video that has even more specialized details of the latest month as well as this post.

Ok…let’s go!


You Tube Direct Link   or   Vimeo Direct Link


Another special Tax saving Financial Planning Tip:

Be sure to Catch that Catch up provision !

Getting slightly older has some great benefits such as the catch up provision, be sure to take advantage of it :Retirement Plan

  • 401k Catch up $6000 in 2015 for age 50+
  • HSA Family and individual $1000 catch up for age 55+ (note 55 not 50)
  • IRA, SIMPLE, 403b, 457b (IRS website)

Those turning 50/55 years young this year should contact your employer (if applicable) to make sure you are enrolled and receiving maximum benefits.

With taxes being more prevalent (being PC here) since the tax payers relief act sunset, every savings counts!

Swiss Unpegs the Peg

The pressure of the worlds lower rates were too much for the Swiss to take. After promising they would hold the peg to the Euro, in sudden turn around fashion they let the peg go.

Swiss Franc to Euro 1-2015

A quick view of this chart shows the pain that occurred for many on the wrong side of this exchange.

  1. Other countries following suit
  2. Swiss residents/natives now are much less competitive, in the short-term
  3. Push back against the artificially lowering of rates AGAINST world governments (a slight loss of confidence towards them)

These concerns arising from the Swiss moves may have larger implications, not to worry, we are watching carefully.

US Rates continue their Dive

The underestimate of worlds lower rates on our US rate continues but not only ourselves, but almost all other. Rates have continued to fall even as our economy picks up steam. Another side effect, in addition to our Swiss comments above.

10 Year 1-30-15

Lower rates, a negative predictor of future economic growth in the past may not be giving the correct signal at this time. Time will tell, but we think these are artificially low and will normalize in the coming quarters. Read “Higher Rates” coming soon!

Hope you are having a great start to the year!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225

Patience Rewarded…AIG bailout net $12 billion positive for US!

Patience has been rewarded for taxpayers, US government, and AIG as the near final shares owned by the US government (only 22% left after the sale, down from over 90% at one point) will be sold today into the open market.

AIG, the poster child of excess insurance and derivates products, dug a hole too large for its balance sheet to escape with the fall of the banking system in the 07-09 recession. The US Government propped up the company with a controlling contribution and then forced the company to shape up.

In this press release from the US Treasury the collective US Government will net over $12 billion in net gains on a $182 billion investment.

Patience was greatly rewarded in this situation!

Have a Great Day!




8222 Douglas Ave # 590

Dallas, TX 75225