Thursday, February 29, 2024

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* From the IRS – “Michigan taxpayers impacted by severe storms, tornadoes and flooding qualify for tax relief; various deadlines postponed to June 17”.

* F.I. TAX GUY Sean Mullaney, and Andrea MacDonald, discuss “Tax Return Reporting for Net Unrealized Appreciation.”  

* Kay Bell reports “FTC alleges H&R Block deleted customer tax data, used deceptive advertising” – (highlight is mine)

The Federal Trade Commission (FTC) this afternoon announced it has filed an administrative complaint against H&R Block for wiping out customers' entered data as a way to pressure them to pay for higher-priced tax preparation software options.”

Another reason to never use Henry and Richard to prepare your taxes.

* ACCOUNTING TODAY identifies “The 20 worst states for doing business”. 

Guess which is the worst state (it should come as no surprise).  

* Let's end with more disaster relief from the IRS – "San Diego area taxpayers impacted by severe storms, flooding qualify for tax relief; various deadlines postponed to June 17”.

* And Jeff Stimpson tells us “Washington wildfire victims get tax relief” at ACCOUNTING TODAY.

TTFN












Tuesday, February 27, 2024

THIS I KNOW TO BE TRUE

 

This I know to be true.

Extreme fundamentalist Christians are no less a danger and threat to America, and to freedom and democracy, than extreme fundamentalist Muslims.  Or any group that distorts/perverts religious beliefs and teachings.

The separation of Church and State, a basic concept that American democracy was built on, requires that the specific beliefs of one individual sect or religion is NEVER legislated or forced upon the populace by the government. 

As an intelligent and patriotic American, and one who happens to have been raised on the true teachings of Jesus Christ, I denounce and reject today’s racist and repressive Religious Right controlled and Trump embracing Republican Party and ALL its candidates in ALL elections at ALL levels – local, state, and national.  

As should every intelligent and patriotic American.

TTFN


















Friday, February 9, 2024

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* From Kay Bell at DON’T MESS WITH TAXES – “Attention Alabama & Maryland shoppers: Special sales tax holiday savings come your way in February”.

* From the IRS - “West Virginia taxpayers impacted by severe storms, flooding, landslides and mudslides qualify for tax relief; various deadlines postponed to June 17”.

* Speaking of disaster relief, Jeff Stimpson reports on “Tax relief for Maine weather victims” at ACCOUNTING TODAY.

Individuals and businesses in parts of Maine that were affected by severe storms and flooding that began on Dec. 17 now have until June 17 to file various federal individual and business tax returns and make tax payments.”

*  FYI – the IRS answers “Frequently Asked Questions on Gift Taxes”.

* And irs.com has a new page that discusses “Filing Taxes After Divorce or Separation”.

TTFN















Friday, February 2, 2024

DON’T BE IN SUCH A HURRY – BUT DON’T WAIT TILL THE LAST MINUTE

 

As the tax filing season begins here is some good advice, taken from my book THE JOY OF AVOIDING TAXES -

You should not rush to be among the first taxpayers of the year to have your taxes done. Do not give or send your tax preparer your ‘stuff’, or attempt to prepare your own returns, until you have received all the forms and information needed to complete the returns! That means every W-2, every 1099, and every K-1 and all the cost basis information on the sale of investments.

Over the years I have had several experiences where a client came in very early in the season and had his or her return prepared, only to receive another Form 1099 in the mail the day after the finished returns were sent to his or her “uncles”.

If you have a brokerage account there is an excellent chance that you will receive at least one, if not two, corrected “Consolidated 1099 Statements” to report taxable dividends, interest and gross proceeds after the initial statement arrives in late January.  The final corrected 1099 may not arrive until mid-March.

On the other hand -

Many taxpayers who expect to owe their “uncles” wait until the very last minute to get their tax information together to prepare their return. Even if you think you will owe taxes you should have the return prepared early, once you have all the necessary information in hand. You don’t have to actually file the returns and pay the tax until mid-April. But by having your 1040 prepared early you will know exactly how much you will owe and have time to come up with the money, instead of running around trying to juggle funds days before the deadline. Hey, you might even be surprised to find that you will be getting a refund!

Also consider the workload of your tax preparer. I had a strict long-standing rule that all returns that are not literally in my hands, with all the necessary information, by mid-March will be automatically extended!

And one more thing -

If you owe money to your Uncle Sam it is very, very important that you get your tax return in the mail by the initial mid-April deadline -or get your automatic extension application in the mail by the April deadline and the finished return in the mail by the mid-October deadline - even if you cannot pay all or any of the tax due on the return!  Send what you can with the return – but if you can’t send anything be sure to mail the return!  The same applies to your state income tax returns.

The IRS penalty for paying late is .5% (one half of one percent) of the tax due per month, or part thereof, until paid.  The penalty for filing late is 5% per month – 10 times as much!  States also have increased penalties for late filing.      

TTFN












 

 

Thursday, February 1, 2024

THE TWELVE DAYS OF TAX SEASON

 

Although I have retired, I still celebrate the beginning of the tax-filing season with my annual posting of -

THE TWELVE DAYS OF TAX SEASON

On the first day of tax season my client gave to me a Closing Statement for the purchase of a home.

On the second day of tax season my client gave to me 2 year-end brokerage statements.

On the third day of tax season my client gave to me 3 mortgage statements (without, of course, any analysis of how much of the mortgage interest reported represents interest on acquisition debt).

On the fourth day of tax season my client gave to me 4 W-2s.

On the fifth day of tax season my client gave to me 5 Salvation Army receipts.

On the sixth day of tax season my client gave to me 6 1099-DIVs.

On the seventh day of tax season my client gave to me 7 cancelled checks.

On the eighth day of tax season my client gave to me 8 useless items.

On the ninth day of tax season my client gave to me 9 medical bills (not enough to exceed 7 1/2% of AGI).

On the tenth day of tax season my client gave to me 10 stock sale confirms.

On the eleventh day of tax season my client gave to me 11 employee business expenses (despite being no longer deductible).

On the twelfth day of tax season my client got from me a finished tax return, 11 employee business expenses, 10 stock sale confirms, 9 medical bills, 8 useless items, 7 cancelled checks, 6 1099-DIVs, 5 Salvation Army receipts, 4 W-2s, 3 mortgage statements, 2 year-end brokerage reports, and a Closing Statement for the purchase of a home.

And, of course, on the thirteenth day of tax season my client gave to me a corrected Consolidated 1099 from Wells Fargo Advisors!

TTFN











Friday, January 26, 2024

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* Kay Bell does a good job of identifying “Tax statements you need to file your 2023 return” at DON’T MESS WITH TAXES.

* And Kay reports “IRS offers guidance on how to answer the tax return digital assets question”.

 A new post at BOBSERVATIONS – “The Real Enemy of America”.

* From the IRS - “Connecticut taxpayers impacted by storms qualify for tax relief; various deadlines postponed to June 17” -

The Internal Revenue Service announced today tax relief for individuals and businesses in parts of Connecticut affected by severe storms, flooding and a potential dam breach that began on Jan. 10.

These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, this includes New London County, including the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation. Individuals and households that reside or have a business in these localities qualify for tax relief.”

* FYI - my weekly NATP online newsletter told me “TurboTax Advertising Found to be Deceptive” -

The Federal Trade Commission (FTC) issued an opinion and final order finding that Intuit Inc., which owns TurboTax, engaged in deceptive advertising when it ran ads for “free” tax products and services for which some consumers were ineligible. The decision upholds an administrative law judge's opinion that Intuit violated the FTC Act by engaging in deceptive advertising.”

TTFN













Tuesday, January 2, 2024

VERY IMPORTANT!

 


America has never been in more danger than it is today.

Trump, his mindless followers, and his Republican enablers pose the greatest threat to American freedom and democracy in our country’s history.

Trump is a totally worthless piece of excrement, completely devoid of humanity, integrity, and honor, who does not possess a single redeeming positive human quality, and who has never performed a single totally unselfish positive act in his entire adult life.  In the history of our country no one single individual has done more damage to America, the American people, American values, and American democracy than Donald Trump.

Today’s Republican Party has totally embraced Trump and his lies, crimes and treason and is completely controlled by the racist and repressive so-called “Evangelicals” of the Religious Right.

If Trump is returned to the White House and/or if Republicans are allowed to take control of both houses of Congress and local state legislatures it will truly be the end of America as we know it.  Of this I have no doubt.

There is not now. nor has there ever been, an intelligent or acceptable reason for any American to support Trump for any political office.  Any person who continues to support Trump for President is either a moron, a racist, bigot or white supremacist, has no conscience – or, like Trump himself, all three.  And a traitor.

It is vitally important for the future of America that we defeat every Republican candidate for every office in every election at every level in 2024.

TTFN