Form 1040 “New for 2009, Filing”
Well the IRS has released its “draft” of the 2009 Form 1040. Clicking the photo on the right will take you in a new window so you can see it if you like.
The only change in the “Income” section is line 19. It is still for “Unemployment compensation”, but they added the phrase “. . . in excess of $2,400 per recipient (see page 27)” This is done so that those who are not aware (and prepare their own returns) that this is something new. If you need clarification, please visit Unemployment Compensation at the IRS site for Tax Changes for Individuals.
In the section for “Adjusted Gross Income”, line 23 now reads, “Educator expenses (see page 29)”. So, what used to be there is “Archer MSA deduction. Attach Form 8853” is no more. For more information on Archer MSA deduction please see Publication 696.
Line 34 now reads “Tuition and fees deduction. Attach Form 8917”, it used to be, “Jury duty pay you gave to your employer” This is not something new, just reworded from last years form.
Those are the only notable first glance changes to page one. Now . . .
Page two. (I did that in my best Paul Harvey voice I could muster.)
In the “Tax and Credits” area, line 39c from last year is gone (if you’ll remember this was a “check box” if you increased your standard deduction using your real estate taxes).
Line 40 is now “a” and “b”. “A” is the standard “Itemized deductions (from Schedule A) or tour standard deduction” which, as normal is listed on the left side of the form. Now part “b”. This reads “If you are increasing your standard deduction by certain real estate taxes, new motor vehicle taxes, or a net disaster loss, attach Schedule L (a new Form) and check here (see page 35)” and has a corresponding check box.
(I’ll talk more about the new schedules in other upcoming post)
Line 42 is the same ol thing but now reads “Exemptions. If line 38 is $125,100 or less and you did not provide housing to a Midwestern displaced individual, multiply $3,650 by the number on line 6d. Otherwise, see page 37”
Lines 47 through 55 are the same with two notable differences. This is the credit section of this part. They are rearranged (what was line 47 is now down on line 50 and such). The credit for the elderly or disabled is no longer listed there. Schedule R Although that line has been omitted altogether, the credit has not, it is still a viable credit. You’ll just enter it on line 53 and put a check in the box for other credit forms (this is “c”).
Okay now for “Other Taxes”, well nothing new in that section.
In the “Payments” section line 63 reads “Making work pay and government retiree credits. Attach Schedule M”. Again, I’ll talk more about the new schedules in other upcoming post.
Line 66 “Refundable education credit from Form 8863, line 16” this is new for the American Opportunity Credit.
So there are the basics of the new form and what is new and so forth. To further prepare yourself for the upcoming filing season please view the instructions for the new 2009 return.
Welcome to the new site address. .
Welcome to my new site for this blog. As you can see I have changed it around a bit. Okay a lot.
Reason for the change is, well, not sure. Basically just decided the place needed remodeled. That is what has been taking so long. Locating a theme and then tweaking it to something that is enjoyable on the eyes and easy to move around in.
I don’t have all the bugs worked out of a few things so if you experience problems please let me know.
The design here, is one that I am hoping has a faster load time. I also have added a few things and removed a few more. I won’t be advertising other than for other Blogs.
Things that are still missing:
As with all new things, it takes awhile to get them rolling correctly. To that end please not that my blog rolls are not yet posted but will be. My quotes didn’t make the move so I need to re enter those by hand, and will do so as time permits.
I haven’t figured out how to change the feed from the old to the new. I have a feed for this site, just not sure how to guide my feed readers here from the old. A work in progress and a plea for help. If you know the feedburner way to do this pleas email me from my contact page.
What’s New: (aside from the obvious)
I have a new widget “Related Posts” that will announce other post within this site that may be related to whatever current subject I have written about. It is active now and has added to past post. If this works out for all, this feature will be staying.
In an effort to spruce things up a bit (let us face it, taxes can get a bit boring/dull), I have added a plug-in that will help me find and inset pictures into my post.
There is a widget on the side that allows me to let everyone keep tabs on what book I may be reading. . . This seems somewhat bothersome but if the feedback is good, it will be something to keep using.
I have entered a lot of new spam blockers (spam in the comment section is very annoying). At the bottom there is a small counter showing how much spam is being blocked.
You will notice a link at the bottom to share post on facebook. I have become a big facebook fan. Mostly playing the games (three of them anyway), but also as a communication tool.
Below that you will see “Share and Enjoy” this is a plug in that will allow you to share post via your favorite social network. If you don’t see yours please contact me and I’ll add it.
For now that is about it. I am still tweaking things trying to get them just so, Please have a little patients with the re birth of the site. If there is some trick or gadget you would like to see here please let me know.
Thanks and enjoy. 
photo credit: fontplaydotcom
Bruce
From one to the other to here
So I went from a Word press blog at wordpress.com. to a wordpress blog atached to my site www.lrtaxprep.com, to having my own address. I think I have landed my blog.
This is a test post.
A little Professionalism, if you please.
Earlier this past week I noticed a post(1) from a blogging colleague. I mention this as although his said intentions were set and designed to inform taxpayers, I found not only a few things wrong with the post, but also felt like the post was an attack. The attack was not to just a good blogging friend and colleague, but to other such professionals as well. Moreover, I am not just referring to tax professionals.
Please, let me explain better.
There has been an ongoing, somewhat group, discussion about the pending and upcoming regulation of tax preparers. In the post referenced above it is clear that the subject is surrounding this topic.
It is clearly pointed out “Although these tax preparers may in some cases be quite competent. . . in the author’s own right, he continues with “. . . the fact is (the highlight is mine) they are unregulated and not answerable to a direct regulatory authority or held to an objectively determined set of standards.”
I argue this. I argued this point a while back and do so still today.
I have written many posts, and a series of posts and guest post, covering the topic at hand, hiring a competent professional preparer. (2) However, taxpayers, we are finding, still manage to find those preparers who, well for the sake of not having a longer post than necessary, are plain unworthy.
However, let us back up a bit. First, to be clear, what/who that is being discussed, is what the IRS classifies as an “unenrolled tax preparer”. (Defined below)
Now then, let us correct the highlighted statement above. It says clearly, “. . . they are unregulated and not answerable to a direct regulatory authority or held to an objectively determined set of standards.”
Yes they are.
Let me say that more informatively, quoting from IRS Publication 470 Limited Practice Without Enrollment:
First lets understand what IRS Publication 470 is:
“The purpose of this revenue procedure is to prescribe the standards of conduct, the scope of authority, and the circumstances and conditions under which an individual preparer of tax returns may exercise, without enrollment, the privilege of limited practice as a taxpayer’s representative before the Internal Revenue Service, pursuant to section 10.7(a)(7) of Treasury Department Circular No. 230”
Okay as I read the above, IRS pub 470, and revenue procedure 81-38 has a purpose. This purpose – to “prescribe the standards of conduct, the scope of authority, and the circumstances and conditions under which an individual preparer of tax returns may exercise, without enrollment” By all rights, that should end the argument there, but no, let’s keep going.
For a moment lets go back to our highlight, is says unenrolled preparers are unregulated. Since definitions are important –by way of Merriam-Webster Dictionary
Regulated means:
1 a : to govern or direct according to rule
b (1) : to bring under the control of law or constituted authority (2) : to make regulations for or 2 : to bring order, method, or uniformity to
So unregulated would be the opposite of the above quote box, accurate?
If I put this all together, I see that according to this IRS publication, Unenrolled prepares are regulated by the IRS as prescribed within Publication 470. Therefore, to say they are not is, well, not accurate.
Surely, we can all agree that the IRS is a regulatory authority. Humm, I would think yes.
Thus, one may conclude that the IRS is the regulatory authority over all unenrolled preparers. Yes?
“Sec. 3. Applicability.01 This revenue procedure, issued pursuant to section 10.7(a)(7) of Circular 230, applies to all unenrolled individual preparers of returns who seek to represent taxpayers, within the United States, before examining officers in the Examination Division of an Office of a District Director of Internal Revenue or in the Office of International Operations.”
Clearly, this publication applies to all unenrolled preparers.
“.02 This revenue procedure does not apply to attorneys, certified public accountants, or agents who are enrolled to practice before the Internal Revenue Service. The rules governing the practice of such persons before the Service are contained in the provisions of Circular 230.”
Clearly this publication does not apply to attorneys, certified public accountants, or agents who are enrolled to practice before the IRS.
So now we know what this publication is for and who it is for.
Okay, so if you turn to page 2 of this publication, Section 7 is titled, Ethics and conduct. But wait according the post (1) unenrolled preparers have no such guidance.
Sec. 7. Ethics and Conduct .01 An unenrolled preparer shall act in such manner as not to commit any act of disreputable conduct. Disreputable conduct includes, but is not limited to, the items contained in section 10.51 of Circular 230.
Wow, unenrolled prepares are held to the same ethics and standards of conduct as all those who are regulated by Circular 230 Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers before the Internal Revenue Service.
My point here? Well, the post that questions unenrolled prepares does so with the premise that unenrolled preparers are not “held to an objectively determined set of standards.”
Although IRS Publication 470 Limited Practice Without Enrollment is out dated and needs to be updated, the premise of what it states is clear, within this publication are the rules and guidelines for which unenrolled preparers are being held to an objectively determined set of standards.
And within that document, if one is truly in the know about IRS rules and regulations, they know unenrolled prepares are held to the same high standards in Circular 230 as those for whom it was written for, prepares of tax returns.
When I first read the post, I asked the author, “Are you Serious?” The response: “I am dead serious. What part of what I wrote do you disagree with?” Well, I think above I covered much of what I disagree with. He continued with “What is your definition of a “profession?” Now in the post, he defines this for us by way of Merriam-Webster Dictionary:
1 a : of, relating to, or characteristic of a profession b : engaged in one of the learned professions c (1) : characterized by or conforming to the technical or ethical standards of a profession (2) : exhibiting a courteous, conscientious, and generally businesslike manner in the workplace.
Lets add his other definition:
Investor Words.Com defines profession as, – An occupation, especially one which requires an advanced education.
A profession is indeed an occupation. A professional then would be one who held an advanced knowledge of his/her profession. Yes?
Now here is where he and I will bump heads so to speak. Could the forklift operator of 30 plus years be a professional, because he does his/her job, proficiently? He/she may have been trained, yet he/she may have many years of experience doing this job. If experience were the best teacher, would not years of doing the same thing repeatedly, at some point, make him/her a professional fork truck operator?
My colleague says no. “The reason for this is simple and obvious: No impartial third party regulatory body has determined his core competence.” Really? What of the dancer, the actor, or musician and comic? So what of the landscaper? What of the carpet cleaner? Are they truly not professionals because no “impartial third party regulatory body has determined there core competence”? Not the same thing? I beg to differ, it is. These are all professions, and they all are called professionals.
By what he is saying, Paul McCartney is not a professional. Disagree? Then please point out for us what impartial third party regulatory body has determined his core competence in music. Remember he says “impartial”
Going back to Merriam-Webster Dictionary:
impartial – not partial or biased : treating or affecting all equally
Sadly, I fear my colleague sees only white-collar professions, by the definitions that are posted on his site.
Yet my biggest problem of all, this post drags a good friend and colleague, down to mist of the idiots. He will not see this and that is fine.
My grandmother is very much as he is, really the only difference in the two, is she is over 90. I have to wonder then if he, like her, believes that one should not wear black all the time.
She told me once that professionals do not wear black all the time, in her mind only convicts and truck drivers wear black all the time. That very same year Jeff Goldblum (a professional actor), in an article voiced that he always wears black.
Hummm that story should be for another time.
Anyway, I felt obligated to share the post with my friend. In turn he wrote “I AM A PROFESSIONAL!”
And in good debate-like a lawyer form, this post was written Professionalism: The Cafone’s Rebuttal.
For which I asked him, “Was this really necessary?” referring to did he really truly feel he needed to continue the professional insult to our colleague, my friend.
The reply:
\”Bruce, I suppose nothing I write is \”necessary.\” But I thought it was appropriate given the recent proposals by the IRS to regulate unlicensed tax preparers.
And in response to your email, I didn’t personally attack anyone. You and Robert, more than anyone else should want IRS regulation of preparers so you can differentiate yourself from all the shmucks’ out there who call themselves tax pros. I never once said or implied that Robert or you are NOT excellent tax preparers. After reading your blogs, I’d refer clients to you myself.rt, more than anyone else should want IRS regulation of preparers so you can differentiate yourself from all the shmucks out there who call themselves tax pros. I never once said or implied that Robert or you are NOT excellent tax preparers. After reading your blogs, I’d refer clients to you myself.\”
I politely thanked him for any referrals sent my way and left it at that other to let him know I would be writing this post. (This can be seen on my facebook page)
Before I was able to get this post out, two more post were published. Profession Defined is a post that in a clearer manner, explains or defines the word “profession”. Then this, Beware the Unlicensed Preparer.
Sadly, I found this in poor taste. Believe what you will about “the unregulated or unenrolled preparer”.
Try this:
I challenge any attorney, tax or otherwise, CPA, EA, or what have you, whom are clearly defined in Circular 230 and not living in California, Oregon, Maryland and New York (After 01/01/2010), or other such States – show me your license to prepare tax returns.
Well?
Humm.
I wonder, if you are following the words being said;
“IRS Commissioner Doug Shulman says the agency is working on a series of recommendations that are meant to increase taxpayer compliance and improve the work of tax preparers. Those recommendations may include a call for all paid tax preparers to be licensed in the hopes of “reducing mistakes and combating fraud.”
That includes everyone, CPAs, Attorneys, EAs, and unenrolled preparers alike. Then at that point, those who will be licensed will be all of it. Meaning, the unenrolled preparer is going to be added to the list of folks who “are” allowed to represent taxpayers100%.
Or is that why some of you are so defensive and abrasive to those who are unenrolled? Your pissed because not only will you, the Tax Attorney, or you, the CPA, or you, the EA may have to get a license (maybe, the ground rules are still not set), but you’ll no longer have the market on representation of taxpayers before the IRS.
News flash, monopolies are illegal. Taxpayers need to know the truth about the misconceptions within those ranks. Others are just as / can be as capable of taking the tax classes being held at those reputable universities. Earning CPE in taxation, and as pointed out, ethics.
Aside from the required CPE that Attorneys and CPAs are required to take, there are only a few true differences between what they can do and what an unenrolled preparer cannot.
I would also point out that the Attorney isn’t required to take CPE in taxation. The CPA isn’t required to have taxation CPE. The only ones in the IRS group of specialist that are required to take CPE in taxation are, EA’s.
For those of you in those ranks whom I have or may have or may later offend, I am not a part of your click, been there done that, unimpressed.
Don’t like it?
FO!
Learn to be civil.
(2) Choosing a preparer – this link will take you to post that appear here (this blog) covering this. There are 24 in all.
Reference material:
-
Publication 4019 page two. It is not a list per say but will show plainly the “differences” of form 2848 and form 8821.
Definitions:
- unenrolled tax preparers – An individual who prepares and signs a tax return as the preparer, or who prepares a tax return but is not required to sign the tax return.
- Practice before the Internal Revenue Service – comprehends all matters connected with a presentation to the Internal Revenue Service or any of its officers or employees relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service. Such presentations include, but are not limited to, preparing and filing documents, corresponding and communicating with the Internal Revenue Service, rendering written advice with respect to any entity, transaction plan or arrangement, or other plan or arrangement having a potential for tax avoidance or evasion, and representing a client at conferences, hearings and meetings.
Back for more. . . . , somewhat. . . .?
Okay it has been a month since I last put something up here, and has been almost two months since I actually wrote something. I really have missed being here, so I have decided that giving this up is not something I am ready to do.
Some of this decision was based on a friend of mine has a daughter who is an English teacher. I mention this as through communications from them both I have learned that my spell is “atrocious”.
So why bring all that up? Well I have learned that as I wrote more post my spelling improved somewhat as I was going. So that is one reason that I am returning to my blogging.
Over all I miss posting information out there. Although it can be time consuming at times and I need the time for other venues I find in my heart I also need this.
Over the past two months, a lot has happened. I have several new clients, I have reopened publicly that I am offering payroll and general bookkeeping services. To do this I have bought some very updated and techy software to achieve my ends for the clients. By end of year 2010 I anticipate being on line for client information. Meaning I have it going in a direction that my clients will be able to do much needed tax stuff via a secured web portal from my site.
The software is massive and a big learning issue for me but is going along nicely. New tax clients will be going directly into the new system, my way of testing it.
My son (all of age 11 ½) is making a presence on the web learning that it is more than just a game source. Moreover, I am totally able to spend more time with both of my children.
My post will at best, be sporadic, but I can assure that there will be at least one a week. I hope I can get back to the readers who I left. Tax season is approaching and there is a lot to know as a taxpayer.
See you soon.
Prepare your taxes on-line With L & R Tax Preparation
L & R Tax Preparation
Tax Preparation, Payroll, and Accounting,
Including online services.
E=MC2 or use QuickBooks
