The Wisconsin Taxpayers Alliance has analyzed state and local taxes and U.S.Census data, and has determined that the state is sixth highest in taxes as a percentage of personal income. If measured per capita, Wisconsin ranks twelfth. And if only income, sales and property taxes are measured Wisconsin is third.

The taxes as a percentage of personal income included state and local revenue from property, income, gasoline, cigarette and retail sales taxes. State and local taxes in Wisconsin are 12.2% of personal income. The national average is 11%. And the numbers ranged from 12.7% for New York down to 8.9% for Alabama.

Efforts to put limits on taxes died in the legislature. What’s next, governor? (I’m sure he’s got some reason why we should be happy about this!)

The first civil case over the tax shelter called “Son of Boss” went in favor of the IRS. Tax Court Judge David Laro granted summary judgment to the IRS in its case against RJT Investments X LLC in Omaha, Nebraska. The IRS argued that RJT created fake losses in order to lower its federal taxes.

The IRS has already settled with 1,200 businesses for $3.8 billion in taxes, interest, and penalties. This settlement was less than the maximum allowed by law. Another 600 taxpayers involved with the shelter were warned that if they did not accept the settlement, they would be assessed full taxes and penalties.

A criminal trial is upcoming for 18 individuals related to sales of tax shelters by KPMG LLP. 16 of those 18 are former KPMG executives. KPMG itself has agreed to deferred prosecution and a $456 million fine for its role in structuring and selling the illegal tax shelters.

RJT will owe millions in penalties and taxes.

This is a first! The IRS has started using private companies to collect overdue taxes. If the program is successful, it will be expanded next year.

The IRS claims the “tax gap” has grown to $290 billion. The tax gap is the difference between taxes collected versus taxes the IRS believes SHOULD be collected.

Three private companies are expected to collect about $1.4 billion. The cases assigned to them are ones in which the tax bills are not in dispute, but are merely unpaid. The firms will not be allowed to take enforcement actions such as liens, levies, or seizures, and they won’t be able to cut deals to settle the outstanding debts.

The IRS is using the firms so that IRS personnel will be free to pursue more difficult cases. The authority to hire outside firms was granted to the IRS in 2004, but unions slowed the implementation.