Mark Bole wrote:
- quote -

To be exact: DST will start on the second Sunday in March
instead of the first Sunday in April. DST will end on the
first Sunday in November instead of the last Sunday in
October. There was no change to that part of the Uniform Tax
Act allowing each state to pass a law exempting themselves
from DST.

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Arthur Kamlet <ArtKamlet[at]aol.REMOVE.com> wrote:

- quote -

And how is anyone to know when that hour ends, if the clock
is frozen?

Seth

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Arthur Kamlet wrote:
- quote -

I'm sure that's what IRS would expect upon audit, but since
domicile of taxpayer is in CST, I would be sorely tempted to
say child was born in the earlier tax year. Might just be
willing to argue the point. Or take the chance.

ChEAr$,
Harlan

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:

- quote -

Use the date on the birth certificate.

Anyone remember the MASH episode where a patient dies on the
operating table in Korea a few minutes before midnight,
Christmas Day? And Hawkeye moves the clock in the room a
few minutes to the next day so the death certificate will
not read December 25?

And doesn't anyone remember our official Congresscritters
trying hard to pass a budget extension bill but getting
close to midnight, pass a resolution of Congress to freeze
the clock for the next hour?

And you know what? It would appear that in spite of laws of
celestial mechanics, the legal clock did not change over to
the next day? (There's precedent for that in the Book of
Joshua, I recall :^)

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"Herb Smith" <smithff33[at]aol.com> wrote:
- quote -

Doesn't that contradict your first answer? His tax home is in
Massachusetts, where it was already 2007 when he received the
check. He was only on vacation in the Pacific time zone.

Bob Sandler

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Rich Carreiro wrote:

- quote -

I'm not surprised by this question at all, as I have thought
about it myself on more than one occasion.

For comparison, the computing world (with the exception of a
certain well-known vendor in Redmond, WA) solved this
problem long ago by standardizing on UTC (coordinated
universal time), which has no daylight savings provisions
and is exactly the same at all locations around the globe at
all times.

Other than electronic filing deadline compliance (as already
noted), the only other place this seems to show up is with
states that have sales tax holidays that end at midnight.
There is no single consistent practice regarding sellers and
purchasers in different time zones.

What is the practical application of this question? In the
end, doesn't it come down to record-keeping requirements?
Bank, brokerage, Paypal, and escrow closing statements are
normally only going to include a date, not a time, so
wouldn't you just go with that? After all, you might have
forgotten to adjust your wristwatch for standard time, so
that on December 31st you still thought it was PDT. ;-)

Apropos New Year's baby: the first baby born in California
in 2006 (35 seconds past midnight) received a $1,000 savings
bond as a marketing promotion. After paying the child's
taxes on $150 of taxable income, the family will probably
just about break even compared to claiming a federal
dependent exemption deduction and California dependent
exemption credit for the child in 2005. No such luck for
the second baby...

Tangentially, everyone knows that the Energy Policy Act tax
law of 2005 extends daylight savings time by four weeks
starting next year, right?

-Mark Bole

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Herb Smith wrote:
- quote -

But that "tax home" theory goes out the window in Harlan's
hypothetical example:

"But now, say one of my clients living in Alabama and just
beyond that 12 miles (which btw is nowhere designated as
"official") comes into Columbus to the hospital to have her
baby December 31st, and it is born at 11:30 pm! Exemption
for this year or next?"

Never mind that it is 11:30 PM Central Time on December 31
where the taxpayers live - that birth certificate issued in
the Eastern Time Zone is going to say January 1!

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Herb Smith wrote:
- quote -

Use of the "tax home" time zone would make the most sense;
do you happen to have any authority for that proposition? I
did a little quickie research and didn't find anything other
than the electronic filing regs, which are consistent in a
general way with using "tax home."

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Seth Breidbart wrote:
<snip> Make it cash, because the check isn't negotiable fast
- quote -

Trouble is, physical receipt of the check is, generally,
sufficient to constitute constructive receipt - no
negotiation required (unless the drawer is in a sufficiently
precarious financial position that there is substantial
doubt that the check will clear, in which case you might
have a chance at winning on the constructive receipt issue).

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Rich Carreiro wrote:

- quote -

I do not know the answer to your questions. However, I do
know that there will not be a PDT time on 31 December.

Bill

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Rich Carreiro wrote:

- quote -

I'm not going to answer it so I can see what other people
think about it...!!!

An idea I had long time ago was to have a real estate
settlement office that straddled a time zone boundary. The
seller could sit on the "tomorrow" side of the table and the
buyer could sit on the "yesterday" side and their
transactions - uh, arguably? - could be in to different tax
years...!!!

An idea whose time has come, no?

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Rich Carreiro wrote:

- quote -

Where your "tax home" is located.

- quote -

I assume this is a typo, as there is no PDT time zone in
December. Daylight Savings Time ends in October! 2007
income, since it is 0100 on Jan 1 in MA.

- quote -

Since you physically received ("constructive receipt") the
check at 2200 PST on December 31, I would conclude that this
was 2006 income.

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Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:

- quote -

Make it cash, because the check isn't negotiable fast
enough.

Seth

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Rich Carreiro wrote:

- quote -

I'm constantly amazed at such novel questions here,
questions I nor anyone else had probably never thought of.
The above examples assume, I assume, that the recipient is
on cash basis of accounting.

Okay then, one of the principles of (good) accounting is
consistency, and since IN GENERAL tax accounting follows
financial accounting, I will if ever confronted with this
situation, use my local time, which btw is eastern standard
time, even though I officially live just over the border in
Alabama. A small area about... oh... 12 miles in an arc
around Columbus, GA goes "on Georgia time." (I go to work
on Alabama time and come home on Georgia time, as I
sometimes tell a client.)

But now, say one of my clients living in Alabama and just
beyond that 12 miles (which btw is nowhere designated as
"official") comes into Columbus to the hospital to have her
baby December 31st, and it is born at 11:30 pm! Exemption
for this year or next?

Darn! just when you think you had everything figured
out..... along comes something like this.

ChEar$,
Harlan Lunsford, EA n LA

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What timezone controls re: end of year stuff? The one where
you physically are when something happens, or the one where
your legal residence is.

For example, you're a legal resident of MA. A customer in
the PDT zone paypals you at 22:00 PDT on 31 December. At
that moment you're physically in MA. 2007 income for you?
What if you were vacationing in Hawai'i when the payment was
made? Still 2007 income?

Or forget about e-payments. You're vacationing in Seattle
and a customer there hands you a check at 22:00 PDT. Is
that 2006 income (because it was still 2006 where you
physically were) or 2007 income (because 2007 has started
back home)?

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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