Try TaxCalculator/excel1040 2010
A look at an Income Tax Calculator
Doing it yourself? This spreadsheet is free.
To save money many taxpayers, roughly 31% of those who don’t e~file, are completing their own tax returns. By hand, on paper. Several years ago I came across a wonderful item to help those “paper do-it-yourselfers”.
It is called simply enough Microsoft Excel spreadsheet income tax calculator.
I first knew it as excel1040
You start with entering your data:
By clicking on the images you can see them larger. You need to notice all the tabs across the bottom. Shown above is the sheet where you and your spouse enter your W-2 information. As you can see there is enough space for up to four W-2′s each. With a very nice look at your total separately and together. The numbers I entered are fictitious so that you can see how it works.
As you can see below the information from the W-2 screen has moved completly to the 1040 Form:
As you look at the form, further, if there is information you need, the spreadsheet has what you need written in red before it will calculate:
If work sheets are needed, those are here as well:
Included in this free Microsoft download are Form Sch/s
I have links above to the forms, but you can also find links to each form and Form instructions at the bottom of each form in the spreadsheet:
This is a must have for you the do-it-yourself tax filers who don’t buy the flawed tax software.
Although E-filed returns account for about 80% of individual tax returns filed, that leaves a lot of American Taxpayers filing by paper. If you’re one of those filing on paper, get this spreadsheet. It’s Free!
If you have questions about completing your return contact your tax professional. If you don’t have a tax professional, find one. Even if you don’t have them complete your return, spend the money to find out what you need to know to get your return completed correctly. An hour at a tax pros office, could save you in so many ways on so many levels.
Complete your Federal Income Tax Form 1040 using this Microsoft Excel spreadsheet income tax calculator. It is a wonderful tool and you’ll not find a better aid for the paper filer who does their own.
A lot of folks who use Turbo-Tax, look for a spreadsheet. You’ll be happy to have found this worksheet.
The average cost of hiring a professional to prepare a federal and state tax return with no itemized deductions is $129, while the average cost for an itemized federal and state return is $229so says the National Society of Accountants says.
That is not counting what all comes with this spreadsheet download.
Be sure to read what others have said about it on the front page of the site. Microsoft Excel spreadsheet income tax calculator
Although this is a free download consider donating to this as it will help to get this for years to come.
Thanks for another great download Glenn.
Should You File a Tax Return?
Do you ever wonder whether your income is high enough to warrant the filing of a tax return? Because the minimum income level varies depending on filing status, age, and the type of income you receive, it can be a bit complicated.
Use the following guide to determine whether you must file a federal income tax return for 2010.
Single Taxpayers
If you expect to file a single return, the IRS requires you to file a return for 2010 if your gross income for the year is at least $9,350 if you are under age 65 and $10,750 if you are 65 or older.
Married Filing Jointly
For married persons filing jointly, you are required to file a return if gross income for 2010 is at least $18,700 if both of you are under age 65. If one of you was at least age 65 in 2010, the limit is $19,850 – and if both of you were 65 or over, you must file if you made at least $20,900.
If you are not living with your spouse at the end of the year or you weren’t living with them on the day they passed away, the IRS requires you to file a return if your gross income is at least $3,650. Each personal exemption in 2010 is worth $3,650.
For married persons filing a separate return, no matter what age, you must file a return if gross income is at least $3,650.
Head of Household
For persons filing as head of household, you must file a return for 2010 if gross income is at least $12,000 if under age 65 and $13,400 if at least age 65.
Qualifying Widow or Widower
For persons filing as a qualifying widow or widower with a dependent child, you must file a return for 2010 if gross income is at least $15,050 if under age 65 and $16,150 if at least age 65.
Other Situations That Require Filing
Even if you don’t earn this much income, other situations necessitate filing a tax return. For example, a dependent has to file a return for 2010 if they received more than $950 in unearned income or more than $5,700 in earned income.
Other situations include:
You Owe Certain Taxes. If you owe FICA or Medicare taxes (also called payroll taxes) on unreported tips or other reported income that were not collected, you must file a return. You must also file a tax return if you are liable for any alternative minimum tax. Finally, you must file a return if you owe taxes on individual retirement accounts, Archer MSA accounts, or an employer-sponsored retirement plan.
Advance Earned Income Tax Credit Payments. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, which may be returned in the form of a refund. If you receive advance payments for the earned income credit from your employer, you must file a return.
Self-Employment Earnings. If your net earnings from self-employment are $400 or more, you must file a return.
Church Income. If you earn employee income of at least $108.28 from either a church or a qualified church-controlled organization that is exempt from employer-paid FICA and Medicare taxes, you must file a return.
Questions?
Contact me for more information about filing requirements and your eligibility to receive any tax credits.
Do You Qualify for the Earned Income Tax Credit?
Millions of Americans forfeit critical tax relief each year by failing to claim the Earned Income Tax Credit, a federal tax credit for low-to-moderate-income individuals who work. Taxpayers who qualify and claim the credit could owe less federal tax, owe no tax, or even receive a refund.
This year it’s even easier to determine whether you qualify for the EITC. The EITC Assistant, an interactive tool available on the IRS website, removes the guesswork from eligibility rules. Just answer a few simple questions about yourself, your children, your living situation, and your income to find out if you qualify and estimate the amount of your EITC. You will see the results of your responses right away. Taxpayers, tax professionals, employers, community groups, and public service organizations are encouraged to use the EITC Assistant, which is available in both English and Spanish.
The EITC is based on the amount of your earned income and whether or not there are qualifying children in your household. If you have children, they must meet the relationship, age, and residency requirements. Additionally, you must file a tax return to claim the credit.
General requirements: If you were employed for at least part of 2010 and are at least age 25, but under age 65, you may be eligible for the EITC based on these general requirements:
- You earned less than $13,460 ($18,470 if married filing jointly) and did not have any qualifying children.
- You earned less than $35,535 ($40,545 if married filing jointly) and have one qualifying child.
- You earned less than $40,363 ($45,373 if married filing jointly) with two or more qualifying children.
- You earned less than $43,352 ($48,362 if married filing jointly) with three or more qualifying children.
Tax Year 2010 Maximum Credit
- $5,666 with three or more qualifying children
- $5,036 with two or more qualifying children
- $3,050 with one qualifying child
- $457 with no qualifying children
Note: The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009 and 2010 tax years.
Note: The 2010 maximum Advanced Earned Income Tax Credit (AEITC) the employer is allowed to provide each of their employees is $1,830 per year.
Reads from last week
10 Things Grads Should Know About Retirement Planning -
Brought to my attention via email from the author, this is great information for people who are just getting started. Too many people in their 20s simply don’t know the first thing about retirement planning or smart spending, and it’s because they’re too focused on earning money now to think about what they’ll need later. If you’re in that boat, don’t worry: it’s not too late to change course. With a few tips, you’ll be able to start planning for the day when you won’t have to work anymore.
(Planning For Retirement, Improving Your Retirement, Retirement calculators.)
Homebuyer tax credit payback chaos? – “You all do remember that when it was created, the so-called credit was really just an interest-free federal loan, don’t you? And loans, despite what some homeowners think, must be paid back.
But I’ll guarantee that this coming tax-filing season, affected taxpayers and the IRS are going to be spending a lot more time making sure that the first-time homebuyer credit repayment rules are met.”
Not exactly last week but a missed post that needs mention:
10 Ways To Get Out Of Debt Starting Now – Debt is as American as apple pie. It is estimated that 80% of Americans live with debt and that includes $8 trillion in home mortgage debt. Many of us go to work every day simply to pay for products or services that we’ve already received. We can’t help our children with college, fund our retirements, participate in charitable giving, or simply go on that dream vacation we’ve always dreamed of.
Sometimes a Little Boost Is All You Need
Homebuyer Tax “Surprise” Just a Figment of the Media’s Imagination – they shouldn’t be. They knew exactly what they were getting into. They may not have liked it after the fact but they can’t say they didn’t know. Time is coming that the first round to start paying back is getting near.
Social Media’s Not For You. Or Is It? It should be if you plan on growing your business. Ignoring social media is a mistake for any business that earns revenue from customers, has competitors, or isn’t the Kleenex of your category. If you’re questioning whether your business should engage in social media, consider these three questions:
- Is your business built on relationships?
- Do you have competitors?
- Does everybody you want to do business with already know your name?
Report: U.S. taxes overly confusing – There may be no surprise that the federal income tax is confusing but a new report done at President Obama’s request is detailing just how confusing and contradictory it is.
Obama Proposes Tax Breaks for Business: Too Little, Too Late? – Where were you on December 1, 2007? It’s one of those dates that you’re likely not to remember. But according to the National Bureau of Economic Research, that’s about when the recession really started. If you believe that we’re still in a recession (and most economists seem to), that makes 34 months.
How to cut down your own business costs by hiring virtual assistants -
Snubbed Again! And a Sincere Apology – I don’t get it. I didn’t make Accounting Today’s top 100 most influential people a-g-a-i-n. I mean, they don’t appear to think that my stay home tax practice or my quirky blog posts are influential enough to name. But I guess I should have been tipped off when I wasn’t contacted to supply a cute pic or provide a snappy bio.
E*Trade Online Brokerage Account Review
Tax Relief FAQ: What Should a Business Owner Do In Regards to Delinquent Payroll Deposits or Past Due Employment Taxes? – The best thing you can do is to stay current on your employment taxes from this point forward and seek immediate tax help.
Online Payment Agreement – You don’t need a tax lawyer if you owe the federal government (IRS) $25,000 or less in income tax, penalties and interest. Instead, you can access an online payment agreement.
Are Your Tax Dollars Supporting the Ghostbusters?
H&R Block Records Lower Losses – The nation’s largest tax preparer, H&R Block Inc. reported lower losses by 2% for its first quarter in the fiscal year ended July 31, 2010. In the midst of a flurry of cost cutting measures, the Kansas City, Missouri based tax preparer posted a net loss of $130.7 million.
QuickBooks billing tips, tricks, workarounds – Tracking client retainers
Expert Tax Help FAQ: Can the IRS Get Personal When It Comes to Payroll Taxes? – The sure answer is “YES”
What your IRA can learn about paying tax from Cornell University
If At First It Doesn’t Work, Try, Try, Try Again – Not much is worse than a failed attempt at a resolving a problem being offered as a solution to the very problem it failed to resolve. True, one ought not give up after one unsuccessful try, but is there not some limit to the pursuit of futility?
Financial Mistakes You’d Make All Over Again – My favorite post this week.
SOME FACTS AND FIGURES ABOUT THE FEDERAL TAX SYSTEM – Here are some interesting facts and figures concerning our current tax system that were included in the “Report on Tax Reform Options” recently issued by the President’s Economic Recovery Advisory Board
The Strangest Tax Write-Offs…Ever!
A “PTIN Facebook” for registered tax preparers? – As part of the new preparer registration process, the IRS should make it easy for taxpayers to confirm the identity and PTIN registration credentials of their tax preparers.
Should taxpayers be enforcing the new preparer regulations?
When you hear people say things like “I’m in the 35% income tax bracket,” what are they really saying? Are they truly paying out 35 cents on every dollar they earn just in federal income tax? And what do people mean by the “marriage penalty?” When you’re looking at how to calculate income tax, it’s important to remember that we have several tax brackets in the U.S. Here’s how they break down How to Calculate Federal Income Tax.
Now is the Time to Use an Income Tax Estimator – This is the time to calculate what you’re going to owe and make adjustments in your payroll withholding and estimated tax payments. You know you’ve estimated right when you don’t pay much or get much back in a refund.
How Do You React to Financial Emergencies?
Get ready for FSA changes: IRS issues regs for 2011 OTC drug reimbursements – If you have a flexible spending account, or plan to sign up for one in the workplace benefits enrollment season that will soon be here, remember that medical flexible spending accounts face a change in 2011.
“. . . and here, we, go. . .”
The first of many new costs to paid preparers is coming. When I return to the blogging world on a regular basis, I will be covering this more, a great deal more. For now, know that it begins. . .
My peers and friends in the “field” say there won’t be that much extra cost, I say there will be enough cost to the preparer that this will undoubtedly raise preparer charges thus raising the cost to taxpayers who use paid preparers, we shall see.
Honestly, I hope I am wrong.
Please see highlighted section of the below IRS news wire.
IRS Provides Guidance on Identifying Numbers for Tax Return Preparers
WASHINGTON — The Internal Revenue Service today issued proposed regulations allowing the IRS to require that tax return preparers use Preparer Tax Identification Numbers (PTINs) as the preparer’s identifying number on all tax returns and tax refund claims that they prepare. These regulations when final will implement some of the recommendations in Publication 4832, Return Preparer Review.
“These regulations allow the IRS to better identify and match tax return preparers with the tax forms and claims they prepare. This proposed PTIN system will help us ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of our tax system,” said IRS Commissioner Doug Shulman.
Under the proposed regulations, the IRS will issue forms, instructions, or other guidance that will require paid tax return preparers to begin using PTINs for all tax returns and refund claims filed after Dec. 31, 2010. Currently, tax return preparers must use either a PTIN or their social security number on tax returns or refund claims that they prepare.
The proposed regulations also provide that tax return preparers must apply for a PTIN, regularly renew the PTIN, and pay associated user fees, which will be described in upcoming guidance. As part of the process, some tax return preparers would also be subject to a tax compliance check, which could include a review of the preparer’s history of compliance with personal and business tax filing and payment obligations.
Tax professionals and other interested parties have until April 26, 2010 to submit comments regarding the attached proposed regulations.
The IRS plans to launch a new system later this year through which all tax return preparers will be required to register, including those who already have a PTIN. Tax return preparers who already have a PTIN will have the number revalidated and reassigned to them through the new system, while tax return preparers who do not have a PTIN will be issued one through the new system.
It is estimated that there are as many as 1.2 million paid tax return preparers.
Itemizing deductions – Schedule A
Getting the Most out of Itemizing your deductions.
Itemizing deductions is an incredibly easy theory to understand, yet the strategies behind it all can be intricate and countless.
Free Quicken Online automatically categorizes your expenses.
The rule for when to itemize is simple = you do it if the total of your itemized deductions is greater than your standard deduction.
First of all, your tax is based on your “taxable income.” That’s your total income after you’ve subtracted above-the-line deductions like your Individual Retirement Account (IRA) or other qualified retirement-plan contributions, moving expenses or alimony payments, plus your personal exemption and either :
Your standard deduction or, Your itemized deductions.
Your itemized deductions are sometimes referred to as “below-the-line” deductions. (“adjusted gross income” -aka AGI- is “the line.”) Clearly, the more you can deduct, the less in tax you’ll owe.
Here are the standard deductions that apply to 2011 taxes:
|
Standard deductions for 2011 |
|
|
Filing Status |
Amount |
|
Married filing jointly or Qualifying Widow(er) |
$11,600 |
|
Single |
$5,800 |
|
Heads of households |
$8,500 |
|
Married couples filing separately |
$5,800 |
Some taxpayers must itemize, even if their deductions are less than the standard deduction. You must itemize your deductions if:
- You are married, filing separately, and your spouse itemizes.
- You are a U.S. citizen who can exclude income from U.S. possessions.
- You are a nonresident or dual-status alien.
- You file a short-period return because of a change in your accounting period.
- There are eight sections On Schedule A. Seven of which are itemized expenses that you can deduct on your taxes:
Taxes. These include state and local income taxes, property taxes on real estate, intangible taxes (on the value of stocks and bonds you own) and on personal property taxes on such things as cars.
Interest expenses. For most people, these are limited to home mortgage interest, points (interest that’s prepaid to buy a home), and some interest on investments and education expenses. For most taxpayers, the mortgage deduction is what lets them itemize. If you take out a 30-year, $140,000 mortgage at 6%, you will generate about $8,350 in deductible interest in the first year.
- See also my Fair Market Value Guide. (recently updated for 2010 filing)
Job & Misc. Expenses
Other Misc. Deductions
Total Deductions
The key, then, is to maximize the value of your itemized deductions. Here’s where planning can put dollars in your pocket. Ask your Tax preparer a list of deductions to see What You Can Itemize.
Dealing with the floors
Some itemized deductions — including medical expenses or miscellaneous deductions such as investment expenses, safe deposit fees, professional education, employee job-hunting expenses and tax-preparation fees — are not allowed until they exceed a certain “floor” amount.
The toughest floor to exceed is medical expenses. No medical expenses are allowed as itemized deductions except for the amount that exceeds 7.5% of your adjusted gross income. That means if you have an adjusted gross income of $100,000, the first $7,500 of your medical expenses doesn’t count. But sometimes, elective medical expenses can be accelerated or even deferred. Orthodontia payments for you or your dependents can often be extended. They always can be accelerated. These expenses are deducted in the year they are paid, not necessarily in the year the service is rendered.
If you can already pass the 7.5% test for allowable expenses or these expenses would put you over the minimum hurdle, you should consider accelerating them. If you lack the cash, consider charging the expenses.
On credit card charges, you are allowed the deduction in the year of the charge, not in the year that the charge is paid off.
Don’t automatically accelerate if it puts you over the 7.5% floor. Remember, your total itemized deductions must exceed your standard deduction before you get any real additional benefit from any of them. Allowable medical expenses are just one component of the package.
If you don’t exceed the 7.5% floor or your total itemized deductions don’t exceed your standard deduction this year, you should consider deferring your payments or any elective medical procedures. You get the use of the money — and any investment returns. In any case, you may be able to use the deductions in the subsequent year when you revisit the itemization question.
Miscellaneous itemized expenses are also deductible only after they exceed a minimum floor. In this case, it’s 2% of your adjusted gross income. So, with an adjusted gross income of $100,000, your first $2,000 of miscellaneous itemized deductions won’t count.
But here again, many of these deductions can be either accelerated or deferred. Miscellaneous itemized deductions such as those mentioned above often can be paid in the year of your choice. Many of my clients send my tax-preparation fees to me on Dec. 31 in order to get the deduction in the year the check was mailed. I don’t get the income until I receive the check — in the new year.
The rule here is the same as with medical expenses. First, qualify the expenses to be included in the deductible pot. Then, only if you expect to itemize, accelerate. If not, defer.
Interest and tax payments
Some interest and tax payments can be handled in the same way.
Let’s look at the interest you are paying. Your January payment on your mortgage includes the interest you accrued for December of the previous year.
Example: By making your January 2012 payment on Dec. 31, 2011, you have accelerated a full month’s interest deduction into 2011.
In the 25% bracket for 2011 on a $1,000 interest payment, that saves you an immediate $250 on April 15, 2012. By doing that each year, you have created an interest-free loan of that $250 in perpetuity or at least until the loan is paid off.
Unfortunately, you can’t prepay two or three months in advance because the interest deduction must relate to the year the money was used. But your Dec. 31, 2011 payment will be for the use of the money during December 2011.
You can accelerate some tax payments as well. If you don’t pay your real-estate tax in your mortgage, you have the opportunity to accelerate your real-estate tax payments. I am billed in the 4th quarter of my real-estate taxes January of the following year. But I actually make my payment on Dec. 31 of the previous year. The technique is the same with estimated state income tax payments. I make my estimated state income tax payment, due in January in December.
Any voluntary expenditure can be accelerated or deferred. Your gifts to charity are the best example. Whether your $1,000 pledge to your church or synagogue is sent on Dec. 31, 2011 or Jan. 1, 2012 makes little difference to the charity receiving the money. However, in the 25% bracket for 2011, it can make a $250 difference to your tax bill — but again, only if your total itemized deductions exceed your standard deduction.
Personally, if I can qualify for itemizing my taxes, I want to accelerate my tax savings.
And my favorite quotes fits here:
“Not everything that counts can be counted, and not everything that can be counted counts”. – Albert Einstein
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:
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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.
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