The mess at the IRS is worse than people realize, and a new report from the Treasury Inspector General for Tax Administration, Internal Revenue Service's Executive Long-Term Taxable Travel, reveals widespread flouting of rules, and underreporting of income by senior IRS officials. Such a pattern and practice on the part of those charged with supervising (and prosecuting failure of taxpayers to comply with) tax law is a major scandal. The Taxprof blog cites the relevant sections of the report: Per the Internal Revenue Code [§ 162(a)(2)] and the Revenue Ruling 93-86, an employee who performs a temporary duty travel assignment exceeding one year at a single or principal location is subject to income taxation of his/her travel expense reimbursements. Compensation for services (including fees, commissions, fringe benefits, and similar items) are includible in gross income. Similarly, remuneration for services paid by the employer to an employee are wages subject to employment...(Read Full Post)