A Week in Perspective
THE NEW E-FILE MANDATE – “. . . An individual or couple may engage a tax professional, such as me, to prepare the federal income tax return that he/she/they is/are required to file. While, as is the case with just about every situation where a person or company provides goods or services for compensation, the preparer has certain legal and ethical responsibilities regarding the preparation of the return, the tax pro is hired by the taxpayer to simply prepare the return. . . .”
In the post mentioned above (please read the whole post), my friend asked many a tax bloggers/professionals for our response “I am very sincerely interested in the comments of my fellow tax professionals, and especially my fellow tax bloggers (are you listening Annette, Kay, Kelly, Mary, Trish, Bruce, Dan, Jim, both Joes, Russ, etc.?) on this post.” Of all of us out here and those ask of in particular I was disappointed in the number of us who have responded.
A few even chose to respond by a post on their perspective blogs A Line in the New Jersey Sand and It Depends on What the Meaning of the Word ‘Is’ Is. The rest of the comments can be read here including mine.
In his post I AM RIGHT – BUT A LOT OF GOOD IT WILL DO ME! RDF concludes what we have all said.
Those of the most popular sites or those who have the most readers I was/am ashamed that so many of you did not respond to RDFs inquiry as to what you thought. He asked even with the thought ““on the record” by submitting a comment, or “off the record” by email”. You should have.
This mandate affects all of those who prepare, and I know RDF isn’t the only one who has issue with it. I use software (two different brands actually), and I have issues with it. Are you charging for e-filing your clients returns? If so, are you just sitting there counting the money you might make by being able to charge everyone? Shame on you. This country prides itself on being able to give us the freedom to choose. This mandate takes a peace of that away.
The Recession is Over – The recession lasted 18 months and just as we didn’t know there was a recession until we were well into it, we are now told it ended in June 2009.
Tax Breaks Expiring Soon – No, Not Those Tax Breaks
I found a new blog. I’ll introduce it by saying this is a worthwhile read How important is small business to the US?I have had it on by blog roll for a few days. Add it to yours if you like the way Wray writes.
Another new one I found recently and I have on my blog roll (Is that supposed to be one word? Blogroll, or Blog roll? Hummm, maybe two I think) 21st Century Taxation. The post that took me there is good. Making Work Pay Credit & Economic Stimulus – Need for Better Discussion. As above at this to your RSS feeder/reader if you like the way this blog is written.
Insider Tips to Stop IRS Notice of Deficiency- And Save Your Cash!
As in above I am wondering what has happened to Monica L. The Tax CPA and Confessions of a CPA hasn’t had a post since August 16th at one and August 27th at the other.
Monica, you still out there?
What about Stacie from Stacie’s More Tax Tips, Stacie, are you going to be writing anymore? I have to say you post are missing and we are missing your post.
Self-Employed Folks Get a (Tax) Break
Tax Help For Business Owners Who Owe Unpaid Employment Taxes or Delinquent Payroll Taxes – Are you a small business owner or an independent contractor? If yes, did you know that the IRS is stepping up their enforcement just so that they can go after taxpayers like you more aggressively? The IRS assigns a higher priority to the collection of payroll taxes than personal income taxes.
GOP Pledge to America: No New Taxes (Now Cue the Dancers)
Representing the rich … or not- What all this attention to the impending end of Dubya’s tax cuts really means is there’s been, and will continue to be, all sorts of crazy numbers crunching.
Effect of expiring tax cuts on the rich
You can’t claim the ‘Hope Credit’ just because you hope you qualify for it
Lessons from Tax Reform Act of 1986 – The Senate Finance Committee held hearings today to review and reflect on the important lessons our country learned from its experiences with the Tax Reform Act of 1986 (which Dave Williams talked about in class on Tuesday).
There is a good deal worth reading and pondering in the transcripts of those hearings.
Extended bonus depreciation, $500K Section 179 deduction await President’s signature
Maybe Building Business Credit IS the Answer- The US’s population is a little over 310 million, but 27% of them are under 20. Bottomline – over half of all adults do NOT have good credit.
What do plumbers, politicians, and professors have in common?
The folks over at TaxQueriesblog have once again asked for authors. Seems those of use who want to write about tax stuff want to do so more at our own blogs than others. I joined this group of bloggers at TaxQueriesblog some time ago, when it first came about. Sadly I wasn’t and still am not able to keep up with everything and have little time to contribute to the collection of bloggers and their musings. Here is the list of contributors thus far:
I mention all of this in an effort to maybe get more over there as authors. Please check it out and make contact with those running the show to see if you can join our ranks. Maybe I should write another post for them, I haven’t added anything since. . . It’s been awhile.
A Public Service Announcement – if you text while you drive, this is a must read!
Apologies for not referencing on any PF blogs this week. If you know of other really good ones that I don’t already have in my PF blog roll please send me a note so I can get there.
I’d in closing like to mention, that I have added a few items to help spread the tax word around. You’ll notice at the end of each post there are two buttons. One for tweeting the post on twitter, and another for Google Buzz. I a few folks use these, I am asking that if you enjoy the post or feel someone you know will, please use these to get them the info.
Also I have added at the end of both my columns, some Facebook stuff. Please use these as well. The more people we can reach with our information the more who will be informed about what is. . . .
Thanks, see everyone later.
“A Week in Perspective” what about this title?
IRS TAX TIP 2010-19
Get Your Refund Faster – Choose Direct Deposit
If you want to get your refund as quickly as possible, just tell the IRS to deposit your refund directly into your bank account. By choosing Direct Deposit, you can get your refund much sooner than if you chose to have a paper check mailed to you.
Here are the main reasons 73 million taxpayers chose Direct Deposit in 2009:
- Security Thousands of paper checks are returned to the IRS by the U.S. Post Office every year as undeliverable mail. Direct Deposit eliminates the possibility you won’t receive your check and prevents your refund from being stolen.
- Convenience The money goes directly into your bank account. You won’t have to make a special trip to the bank to deposit the money yourself.
- Ease When you’re preparing your return, simply follow the instructions on your return. Make sure you enter the correct bank account and bank routing numbers on your tax form and you’ll receive your refund quicker than ever.
- Options You can also deposit your refund into multiple accounts. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Direct Deposit of Refund to More Than One Account, to divide your refund among different accounts. A word of caution: some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your Direct Deposit will be accepted.
For more information about direct deposit of your tax refund and the split refund option, check the instructions for your tax form. Helpful tips are also available in IRS Publication 17, Your Federal Income Tax. To get a copy of Publication 17 or Form 8888, visit the Forms and Publications section of IRS.gov, or call 800-TAX-FORM (800-829-3676).
Links:
- E-file
- Publication 17, Your Federal Income Tax (PDF 2,085K)
An IRS reminder.
The IRS (as stated below) says they had 107,831 refund checks returned to them because of incorrect addresses. {Is yours one of them?} This resulting in over 123 mil. Due to taxpayers who over paid. [okay 123.5 million divided by 107,831, equals and average refund amount per check of $1,1453.31] Are you one of them? If you had e-filed and used direct deposit, you’d already have your refund. The other thing I ask, of those, I wonder how many if not wonder if all of these are self prepared returns?
Please read the below IRS notice…
IRS Seeks to return $123.5 Million in Undeliverable Refunds to Taxpayers
IRS Reminds Taxpayers to Use E-file and Direct Deposit
WASHINGTON — The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million in the form of 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.
“We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.”
All a taxpayer has to do is update his or her address once. The IRS will then send out all checks due. Undeliverable refund checks average $1,148 this year, compared to $990 last year. Some taxpayers are due more than one check.
Average undeliverable refunds rose by 16 percent this year, which is in line with the 16 percent rise in average refunds for all tax returns in the latest filing season. Several changes in tax law likely played a role in boosting refunds, including the First-Time Homebuyer’s Credit and the Recovery Rebate Credit, among others.
The vast majority of checks mailed out by the IRS each year reach their rightful owner. Only a very small percent are returned by the U.S. Postal Service as undeliverable.
If a refund check is returned to the IRS as undeliverable, taxpayers can generally update their addresses with the “Where’s My Refund?” tool on IRS.gov. The tool enables taxpayers to check the status of their refunds. A taxpayer must submit his or her social security number, filing status and amount of refund shown on their 2008 return. The tool will provide the status of their refund and in some cases provide instructions on how to resolve delivery problems.
Taxpayers checking on a refund over the phone will be given instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
The IRS encourages taxpayers to choose direct deposit when they file their returns because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.
The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds.
Listen to an Audio File for Podcast
Watch Video: Undelivered Refunds
Watch Video: Track Your Refund
Week ending . . .
Wow! What a week this has been. Not just in my world but around the world. As much as I’d like to talk about what is going on “everywhere”, I think I had better just stick with the taxing world and the world of taxguy.
Nine days ago I transmitted the first e-file return. Following that transmitted return, I started to complete a few other returns as the official start of tax season began. (Are you ready?) With it being officially the filing season, I thought I’d throw some info out there for you to help you get going.
We have a new president and he is off and running. The neatest thing so far that I have noticed, is President Obama created WhiteHouse.gov. “WhiteHouse.gov will be a central part of
President Obama’s pledge to make his the most transparent and accountable
administration in American history.” If you want to follow along with what is happening this is a very interesting site, along with a blog. Follow our government in a new and unique way.
Understandably, it is a work in progress but the information it is making available so far is really interesting. You’re able to find out about the Agenda of the new administration as well as read short bio’s on them. History of the White House, and other great informational places. I haven’t searched it all, but what I have read and seen, I think this is really interesting.
Second chance for economic stimulus check is a great informational tip from Bankrate.com. Every weekday until the end of tax season, Bankrate.com will be providing these tips. I strongly recommend to everyone to check these out.
I was lucky enough to take part in Second chance for economic stimulus check. Myself with fellow tax blogger Robert The Wondering Tax Pro have been included in the observations and insights of this article wonderfully written by Kay Bell. Thank you Kay for allowing me to provide my input.
Along those lines, I was also given the honor to join the ranks of tax professionals who were able to “vent” about a few client aggravations. As Kay Bell writes in her post Are you a good or bad tax client?, “. . . the truth is if you and I were better clients, we’d not only make our tax advisors’ jobs easier, we’d likely end up with a better tax result. That adage “garbage in, garbage out” applies here; even the best tax professional can only work with what he or she gets from the taxpayer.” The post is great, from a prepares point of view.
Finally, while I seem to be focusing on the writings of Kay Bell, the author of Don’t Mess With Taxes, Kay as also written a book that is now available. The Truth About Paying Fewer Taxes was released last week. I haven’t received my copy as of yet (UPS tracking says I’ll have it Tuesday).
February, I will be posting a book review of The Truth About Paying Fewer Taxes, and I will be having my first giving away, a signed copy by its author. So you’ll need to stay tuned for more information.
Okay, what else has been going on around the blog-o-sphere?
Grocery Store Mind Games form Wide Open Wallet is a real eye opener. “. . . according to studies as much as 60 to 70 percent of all purchases at the grocery store are unplanned.”
The Contest at Pecuniarities ended last night. Still waiting to hear who won. Also from Pecuniarities, Carnival of Personal Finance No. 188: The Jane Austen Edition has some great reading. You have to click the links.
File Your Income Taxes Online for Free is a post from No Debt Plan. The IRS has a list of all the places that offer e-file, most of which you have to click the link from within the IRS website. OF them all which is best? Well neither I or anyone else can answer for you without knowing your situation, but “. . .there is a pretty simple weeding out process you can do. Check the websites of the companies listed.”
This week Living Almost large reviews the book Coming Up Short – The challenge of the 401k plans. It’s a book talking about the challenges facing 401ks and what has happened since their inception in 1981. I love the history. But this isn’t just about the history. Read the review, get the book.
Guesstimating take-home pay from a job is a great bit of info for those trying to figure out their take home pay.
There are two post of interest at A Personal Finance Guide. “Becoming smart about money and thriving requires more than a basic financial plan. Knowing how much you need to put away for retirement or college is all very well but to achieve your goals and dreams you need a lot more than mere time-value-of-money calculations. There are many more aspects to being successful. . .” They are discussed in part here. Money and Success – Become Smart About Money and Thrive in Three Basic Steps. And Learning to Save Money Isn’t As Hard As You May Think, it may be a “. . . challenge at first, but the more you do it the easier it gets.”
Filing your taxes: D-I-Y Taxation Software or a Professional Preparer is a great post from Andy. (Even though I thought a small bit of info was miss-communicated.)
The Certified Financial Planner Board of Standards recently provided ten tips on selecting a financial planner as reported and linked to at Tick Marks in the post Planning to Choose a Financial Planner–10 Questions to Consider.
KEEPING TRACK OF BUSINESS MILEAGE and BRIDE OF KEEPING TRACK OF BUSINESS MILEAGE are both great pieces on keeping track of well, yes, your business milage from The Wondering Tax Pro.
Peter over at The Tax Lawyer’s Blog has a real look at on a few things in his post Repeal the Corporate Income Tax and Bring Those Jobs Back Home.
Kelly from Taxgirl reports Google ate Feedburner.
California Tax Refunds Delayed as reported by Russ Fox at Taxable Talk. Have you considered what you would do if this happened in your state?
Being from Oklahoma I always find interesting some of the things I hear from down there. The Tax Foundation Oklahoma’s Budget is ######## is just more interesting info from there.
Joe Kristan from Roth & Company, P.C. Tax Update Blog, reports Ways and Means passes stimulus bill, but weakens 5-year NOL carryback. Hummm.
He also looks at IRS guidance on reporting K-1 percentages.
Next post scheduled for 02/01/2009
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