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I love that we have moved from the politics of this law to the mechanics of it. No matter what our opinion, this is the kinda stuff we need to know for our clients good. Thanks for the discussion. Tom Hollister, CA

I can remember the day when the IRS could answer some very difficult questions. Once I called and asked how to write off an investment in a worthless oil well. The person who answered the phone explained exactly how to do it. My client thought I was a genius when I took care of the write-off on his tax return.

A lot of good answers here --- from both sides --- do not buy whole life, etc. etc. to have some for final expenses. Real life case: 20 year term age 46 @ $745 yr. covers all while kids, etc. till grown and on own, mortgage paid and so on. Year 5 - heart problems, etc.; year 10-11 supposed to have died several different time from "things" and put in nursing home to do so. still have 5 years left on term. --- by the way --- when you lose everything and become ward of state --- term does not count as asset as "no cash value", so you get to keep it. Made it out of home, (God was good); digging out - but NO INSURANCE will touch me, so even with the "final events" coverage at $12-15 per unit will cost over $35 mo. for just a few units of coverage once my term runs out. OR if I keep term - policy has guaranteed conversion clause --- it will only cost me $14,473 for the 21st year; $15,958 for the 22nd year; $17,572 for the 22nd year and so on. I share this as even with a cost benefit analysis - you might want to consider that ---now, you can get something, whereas later you may not have options. Using the "final benefit" costs the $88.00 monthly you mention for $100.000 coverage building some dollars; is just about 2 1/2 times the cost of my small few unit cost(units are typically 3-5 thousand - depending on final benefit company), and --- you get a lot more. Just a different perspective.

I think any comments about IRS shortcomings is appropriate whether the administration is conservative or liberal. For example, if an IRS official is found to be cheating on his own taxes, I think comments on this forum about it might be construed as political somewhat, but nevertheless appropriate for a tax forum.

Unfortunately, in our business, we must keep up with the goings on at the IRS and any pertinent political motivation behind any tax based subterfuge. We cannot separate politics from the IRS because the IRS is politics. How do politicians get more votes? They make tax changes that the IRS must enforce. How do politicians raise more money for themselves? They give sweet tax breaks to their friends. Legally done by voting tax changes and loopholes into law. A problem exists if the IRS is no longer administering tax law, but is impeding the administration of tax law. By whose authority did this happen? Was it a rogue individual? Or part of a bigger issue. I don't know the answer, but I would like to be given all the facts.

Fraz, you expressed it so well. That's why I feel this one is the 'exception'. Thanks for understanding so well. [And what did you think about the squirrel solution?]

When you were an auditor, auditors were trained and experienced. There is no comparison to the people performing audits now. Comparing apples to light bulbs.

I just finished 2010 through 2013 for a four year non-filer. He is picking them up this afternoon. Yesterday he called to tell me that he had received the first letter from the IRS and was appalled that they could charge him (so much) interest and penalties. He really thought that he should try to play the "Let's make a Deal" game. I told him to be thankful if they don't disallow some of his deductions and prepare to pay up. He has excellent documentation, but they also are aware of his assets as the transcripts they furnished me with clearly show. What makes one man think that he is above the rules? I got a healthy retainer up front and a second installment halfway through, for which I am thankful. He did admit that he expected his final debt to be much more. For instance, how can you draw 30 K out of a 401; no taxes withheld; add it to SE income and not expect to owe the IRS? I just don't understand some people, but do appreciate the fact that he came to me to help him out of this mess. Turned out, one year he didn't even owe anything.

That's my feeling too, Makes me wonder if they were just buying time to 'doctor' them? In the past, I never liked them, but I trusted them to deal honestly with taxpayers. Now, that's gone.

You are correct. However, the other questions about "Did you have proper coverage for all of 20XX?" can only be documented with a form from the Insurance Company. 1095-A The only requirement for the insurance companies to issue 1095-A forms for 2014, are those that provide coverage to clients purchased through the exchanges. Everyone else is expected to answer the question based on the honor system. 2015 ALL insurance companies will be required to issue 1095-A forms to all insured. In addition, 2015 all employers that provide insurance will be required to give all covered employees Form 1095-C. This shows how much is paid for insurance coverage by the employer for the employee and how much is paid by the employee through withholding.

100% agree with the two comments, above.

Every time my agent suggests Whole Life, I tell him I'll consider whole life only if-and-when Consumer Reports changes their recommendations on the issue. Same answer for annuities.

He is only looking for commissions. Stay your course with term. There are hundreds of better ways for investing your money than whole life insurance.