The IRS wants you to report your bribes as income!  I thought it was a joke at first, but it looks real.

A website called Consumerism Commentary posted weird US tax code.  It is interesting to see how naive the questions are.  I wonder how many people actually are wholesome enough to declare their bribes/gifts.  What is interesting is the naive tone of the code.  Here is an example quoted by BoingBoing.

    Q. This year, I’ve been taking bribes to keep the caviar smuggling ring off the FBI radar. Do I have to report this?

    A. Yes. If you receive a bribe, include it in your income…

    Q. I found an abandoned car and kept it while the person who lost the vehicle presumably wept. Do I have to report this?

    A. Yes. If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession.

You can read more about it here.

Calculated Risk again had a good article denouncing how a coalition of nine banking and housing groups have once again asked regulators to let some practices pass.

"Lawmakers and consumer groups have called on regulators to incorporate the mortgages in the guidelines, which banks use to set underwriting and disclosure standards. The guidelines currently apply to interest-only and payment-option adjustable-rate loans. . . ."

However in a letter to regulators early December from six members of the Senate Banking Committee asked for the hybrid mortgages to be part of it since they have a number of risky attributes mortgages already covered by the guidelines.

Go and check out his definition of a hybrid, which I resume as a cross between a fix and ARM.

It is sad to see pressure put on elected officials to keep under the radar potentially harmful products, in this case, loans.  And equally as sad, we don’t take the time to inform ourselves nor take part of letting elected officials on our points of view.  No wonder so many strange laws are passed without our input. 

Click here for Calculated Risk’ post.