Saturday, November 5, 2011

WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENIN’

+ Don’t forget to check out the NOVEMBER issue of LOIS.  And don’t forget to visit my new blog THE TAX PROFESSIONAL.

+ The Tax Foundation’s TAX POLICY BLOG quotes an op-ed piece that suggests “Lower Taxes Related to Higher State Credit Ratings?”.

States with strong credit ratings have a few key traits in common. For one, they tend to keep taxes low.”

+ Robert W Wood advises taxpayers to “Keep Tax Records In The Vault!“ over at FORBES.COM.

If you’ve ever tried to tell the IRS ‘I lost my receipt’ you don’t want to do it a second time.  The IRS has heard every excuse in the book. 

While the IRS is not without sympathy, you’ll find it far easier if you don’t have to go to the additional effort of proving something by another means.”

+ I seem to recall that very early in my almost 40-year career teachers were able to deduct “just plain” travel as job-related education.  One did not have to attend any classes or conferences or special events while travelling in order to claim a tax deduction.  As long as the travel was related to the subject being taught travel = education.

This is no longer the case – and has not been for many, many years now.  Joe Kristan discusses a recent Tax Court case that verifies this in “Teacher's Cruise Deductions Miss the Boat at the ROTH AND COMPANY TAX UPDATE BLOG

+ For those of you who are interested, the IRS offers all kinds of individual and business tax statistics on its website at TAX STATISTICS.

+ Trish McIntire has some good advice for taxpayers who use a tax professional in her post “A Different Kind of Tax Planning” at OUR TAXING TIMES (the below highlights are mine) –

But I really want to mention a different kind of tax planning, it won’t change your taxes but it might save you a little money on your tax prep fee. If you have a return which is labor intensive, you should talk to your tax pro and see if any of the work can be done now. The return can’t be completed but how about all the collating, totaling receipts and matching sales to purchases?

Every client is different. Some bring me in the totals of their deductions (business or personal) and others just bring in a bag of receipts for me to sort and total {none of my clients better give me a bag or shoebox of receipts to sort and total – I will give it right back to them – rdf}. And I find myself wishing that I had some of time from the summer in March.

What does the client get from this? After all, I still have to do that work so that I can do the return. If someone works with me, I’m much more likely to work with them on pricing. The return is completed faster. They don’t hear the phrase, ‘I’ll have to extend this return’. And surprises are caught sooner when they are easier to fix.”

+ I’ve heard it all over the past 40 tax seasons – clients trying to deduct the strangest things.  But I have never had a client ask about deducting this.  TAX PROF Paul Caron reports “IRS Acquiesces in O’Donnabhain: Gender Reassignment Surgery Is a Deductible Medical Expense”.

+ A guest post from Matt Robinson over at CAFETAX looks at “5 Tax Loopholes”.

TTFN

1 comment:

Zoe Brain said...

Maybe they didn't tell you because they didn't want their past revealed.

Trans people who reveal themselves have 17 times the national average rate of being murdered.

Only about 2000 people on the US per year have such surgery too.